Bluegreen Vacations Corporation operates as a sales, marketing, and management company focusing on the vacation ownership industry in the United States. The company markets, sells, and manages vacation ownership interests (VOIs) in resorts that are developed or acquired by the company, or developed and owned by others. Its VOIs enable buyers to use resort accommodations through an annual or biennial allotment of points, which represent their ownership and beneficial use rights in perpetuity in the Bluegreen Vacation Club. It also provides property and homeowners’ association management, VOI title, mortgage servicing, and resort amenity operational services; and financing to individual purchasers of VOIs. The company was founded in 1966 and is based in Boca Raton, Florida. Bluegreen Vacations Corporation is a subsidiary of BBX Capital Corporation.
BXG Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Bluegreen Vacations Corp with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Bluegreen Vacations Corp ranked in the 10th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. The most interesting components of our discounted cash flow analysis for Bluegreen Vacations Corp ended up being:
The stock's equity weight, or the proportion of capital from equity relative to debt, is 32. Its equity weight surpasses that of just 20.89% of free cash flow generating stocks in the Consumer Cyclical sector.
Its compound free cash flow growth rate, as measured over the past 2.51 years, is -0.39% -- higher than only 3.23% of stocks in our DCF forecasting set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Consumer Cyclical that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as BXG, try BLBD, QUOT, GCI, MLCO, and SBUX.
Bluegreen Vacations Corporation (NYSE: BXG) ("Bluegreen Vacations" or ‘the Company") announced today that the Company plans to release its financial results for the first quarter ended March 31, 2020, in a press release to be issued after the market closes on Monday, May 11, 2020.