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Posted by
Two Blokes May 27, 2025 -
Filed in
Stock
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5 views
Marriott Vacations' prior boom was driven by cheap debt and post-pandemic demand, but those tailwinds have faded, leading to stagnating revenue and profitability. The company's strategy of funding shareholder returns with debt has reached its limit, with high leverage and rising interest expense now pressuring earnings. With little prospect for revenue growth or improved profitability, a 10x P/E fairly values the stock, limiting future upside for long-term investors.
