Vail Resorts Stock Story


USD 239.19  3.45  1.42%   

Vail Resorts is scheduled to announce its earnings today. The next fiscal year end is expected on the 22nd of September 2022. Vail Resorts Working Capital is quite stable at the moment as compared to the past year. The company's current value of Working Capital is estimated at 951.92 Million. Interest Coverage is expected to rise to 2.47 this year, although the value of Average Assets will most likely fall to about 5.6 B. While some baby boomers are getting worried about consumer cyclical space, it is reasonable to outline Vail Resorts as an investment alternative.
Published over two months ago
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Thinking to short Vail Resorts (NYSE:MTN) based on its current debt commitments?

The company has 2.98 B in debt with debt to equity (D/E) ratio of 1.66, which is OK given its current industry classification.
Vail Resorts has performance score of 4 on a scale of 0 to 100. The entity has a beta of 1.2047, which indicates a somewhat significant risk relative to the market. Let's try to break down what Vail Resorts's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Vail Resorts will likely underperform. Although it is extremely important to respect Vail Resorts current price movements, it is better to be realistic regarding the information on equity historical returns. The philosophy towards measuring future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. By inspecting Vail Resorts technical indicators, you can presently evaluate if the expected return of 0.14% will be sustainable into the future. Vail Resorts right now has a risk of 2.38%. Please validate Vail Resorts downside variance, and the relationship between the sortino ratio and accumulation distribution to decide if Vail Resorts will be following its existing price patterns.
Vail Resorts financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Vail Resorts, including all of Vail Resorts's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Vail Resorts assets, the company is considered highly leveraged. Understanding the composition and structure of overall Vail Resorts debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it.
Please read more on our technical analysis page.

Understanding Vail Resorts Total Debt

Vail Resorts liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Vail Resorts has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Vail Resorts balance sheet include debt obligations and money owed to different Vail Resorts vendors, workers, and loan providers. Below is the chart of Vail Resorts main long-term debt accounts currently reported on its balance sheet.
You can use Vail Resorts financial leverage analysis tool to get a better grip on understanding its financial position

How important is Vail Resorts's Liquidity

Vail Resorts financial leverage refers to using borrowed capital as a funding source to finance Vail Resorts ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Vail Resorts financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Vail Resorts's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
It is good to see analyst projects for Vail Resorts, but it might be worth checking our own buy vs. sell analysis

Sale by Robert Katz of 4000 shares of Vail Resorts

Legal trades by Vail Resorts insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Vail Resorts insider trading alert for sale of common stock by Robert Katz, Exec. Chair of the Board, on 13th of July 2022. This event was filed by Vail Resorts Inc with SEC on 2021-12-15. Statement of changes in beneficial ownership - SEC Form 4. Robert Katz currently serves as chairman, ceo and member of executive committee of Vail Resorts [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Detailed Perspective On Vail Resorts

Vail Resorts reported the last year's revenue of 2.18 B. Total Income to common stockholders was 217.88 M with profit before taxes, overhead, and interest of 868.64 M.

Asset Breakdown

4.4 B
Assets Non Current
1.9 B
2.2 B
Current Assets
Total Assets5.75 Billion
Current Assets2.17 Billion
Assets Non Current4.4 Billion
Goodwill1.94 Billion
Tax Assets32.67 Million

Vail Resorts has a fair chance to close above $251 mark in July

Latest Information Ratio is up to 0.1. Price may slide again. Vail Resorts currently demonstrates below-average downside deviation. It has Information Ratio of 0.1 and Jensen Alpha of 0.23. However, we advise investors to further question Vail Resorts expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Vail Resorts' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Vail Resorts' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Vail Resorts Implied Volatility

Vail Resorts' implied volatility exposes the market's sentiment of Vail Resorts stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Vail Resorts' implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Vail Resorts stock will not fluctuate a lot when Vail Resorts' options are near their expiration.

Whereas other entities under the resorts & casinos industry are still a bit expensive, Vail Resorts may offer a potential longer-term growth to institutional investors. With an optimistic outlook on your 90 days horizon, it may be a good time to purchase new shares of Vail Resorts or increase your existing holdings in the Stock as it seems the potential growth has not yet been fully factored into the current price. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Vail Resorts.

Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Vail Resorts. Please refer to our Terms of Use for any information regarding our disclosure principles.

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