MARRIOTT INTERNATIONAL -CL A (MAR) Stock Fundamental Analysis
NASDAQ:MAR - Nasdaq - US5719032022 - Common Stock - Currency: USD
Overall MAR gets a fundamental rating of 5 out of 10. We evaluated MAR against 134 industry peers in the Hotels, Restaurants & Leisure industry. While MAR belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. MAR is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
MAR had positive earnings in the past year.
In the past year MAR had a positive cash flow from operations.
Of the past 5 years MAR 4 years were profitable.
Each year in the past 5 years MAR had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 10.56%, MAR belongs to the best of the industry, outperforming 85.50% of the companies in the same industry.
With an excellent Return On Invested Capital value of 17.77%, MAR belongs to the best of the industry, outperforming 89.31% of the companies in the same industry.
MAR had an Average Return On Invested Capital over the past 3 years of 14.19%. This is above the industry average of 10.55%.
The 3 year average ROIC (14.19%) for MAR is below the current ROIC(17.77%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.56% | ||
| ROE | N/A | ||
| ROIC | 17.77% |
ROA(3y)8.6%
ROA(5y)5.96%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)14.19%
ROIC(5y)10.96%
1.3 Margins
MAR has a better Profit Margin (11.18%) than 77.10% of its industry peers.
In the last couple of years the Profit Margin of MAR has grown nicely.
Looking at the Operating Margin, with a value of 15.21%, MAR is in the better half of the industry, outperforming 67.18% of the companies in the same industry.
MAR's Operating Margin has improved in the last couple of years.
MAR has a Gross Margin of 20.47%. This is amonst the worse of the industry: MAR underperforms 85.50% of its industry peers.
In the last couple of years the Gross Margin of MAR has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.21% | ||
| PM (TTM) | 11.18% | ||
| GM | 20.47% |
OM growth 3Y31.06%
OM growth 5Y6.38%
PM growth 3YN/A
PM growth 5Y7.19%
GM growth 3Y8.89%
GM growth 5Y4.07%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), MAR is creating value.
Compared to 1 year ago, MAR has less shares outstanding
The number of shares outstanding for MAR has been reduced compared to 5 years ago.
MAR has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.75 indicates that MAR is not in any danger for bankruptcy at the moment.
MAR has a Altman-Z score of 3.75. This is amongst the best in the industry. MAR outperforms 80.92% of its industry peers.
MAR has a debt to FCF ratio of 5.16. This is a neutral value as MAR would need 5.16 years to pay back of all of its debts.
The Debt to FCF ratio of MAR (5.16) is better than 74.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 5.16 | ||
| Altman-Z | 3.75 |
ROIC/WACC2.09
WACC8.52%
2.3 Liquidity
A Current Ratio of 0.42 indicates that MAR may have some problems paying its short term obligations.
MAR's Current ratio of 0.42 is on the low side compared to the rest of the industry. MAR is outperformed by 79.39% of its industry peers.
MAR has a Quick Ratio of 0.42. This is a bad value and indicates that MAR is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.42, MAR is not doing good in the industry: 76.34% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.42 | ||
| Quick Ratio | 0.42 |
3. Growth
3.1 Past
MAR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 24.23%, which is quite impressive.
Measured over the past years, MAR shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.01% on average per year.
Looking at the last year, MAR shows a small growth in Revenue. The Revenue has grown by 5.20% in the last year.
MAR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.70% yearly.
EPS 1Y (TTM)24.23%
EPS 3YN/A
EPS 5Y11.01%
EPS Q2Q%7.11%
Revenue 1Y (TTM)5.2%
Revenue growth 3Y30.91%
Revenue growth 5Y2.7%
Sales Q2Q%5.52%
3.2 Future
MAR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.82% yearly.
Based on estimates for the next years, MAR will show a small growth in Revenue. The Revenue will grow by 4.99% on average per year.
EPS Next Y-6.8%
EPS Next 2Y3.31%
EPS Next 3Y6.27%
EPS Next 5Y10.82%
Revenue Next Year4.9%
Revenue Next 2Y5.54%
Revenue Next 3Y5.67%
Revenue Next 5Y4.99%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
MAR is valuated quite expensively with a Price/Earnings ratio of 27.69.
MAR's Price/Earnings is on the same level as the industry average.
MAR's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.28.
MAR is valuated quite expensively with a Price/Forward Earnings ratio of 27.06.
The rest of the industry has a similar Price/Forward Earnings ratio as MAR.
MAR is valuated cheaply when we compare the Price/Forward Earnings ratio to 91.29, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.69 | ||
| Fwd PE | 27.06 |
4.2 Price Multiples
MAR's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. MAR is more expensive than 71.76% of the companies in the same industry.
MAR's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. MAR is cheaper than 64.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.49 | ||
| EV/EBITDA | 23.13 |
4.3 Compensation for Growth
MAR has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.52
EPS Next 2Y3.31%
EPS Next 3Y6.27%
5. Dividend
5.1 Amount
MAR has a yearly dividend return of 0.88%, which is pretty low.
MAR's Dividend Yield is a higher than the industry average which is at 2.89.
Compared to an average S&P500 Dividend Yield of 2.27, MAR's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.88% |
5.2 History
The dividend of MAR has a limited annual growth rate of 4.64%.
MAR has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of MAR decreased in the last 3 years.
Dividend Growth(5Y)4.64%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
MAR pays out 23.77% of its income as dividend. This is a sustainable payout ratio.
The dividend of MAR is growing, but earnings are growing more, so the dividend growth is sustainable.
DP23.77%
EPS Next 2Y3.31%
EPS Next 3Y6.27%
MARRIOTT INTERNATIONAL -CL A
NASDAQ:MAR (1/29/2025, 8:00:00 PM)
After market: 289.849 +0.19 (+0.07%)289.66
+1.02 (+0.35%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners62.04%
Inst Owner Change-0.16%
Ins Owners1.17%
Ins Owner Change-0.1%
Market Cap80.49B
Analysts69.03
Price Target279.11 (-3.64%)
Short Float %2.32%
Short Ratio4.19
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.88% |
Yearly Dividend1.95
Dividend Growth(5Y)4.64%
DP23.77%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.48%
Min EPS beat(2)-3.05%
Max EPS beat(2)0.09%
EPS beat(4)2
Avg EPS beat(4)15.26%
Min EPS beat(4)-3.05%
Max EPS beat(4)66.6%
EPS beat(8)5
Avg EPS beat(8)10.15%
EPS beat(12)8
Avg EPS beat(12)13.57%
EPS beat(16)11
Avg EPS beat(16)27.26%
Revenue beat(2)0
Avg Revenue beat(2)-1.45%
Min Revenue beat(2)-1.66%
Max Revenue beat(2)-1.23%
Revenue beat(4)0
Avg Revenue beat(4)-1.47%
Min Revenue beat(4)-2.7%
Max Revenue beat(4)-0.27%
Revenue beat(8)3
Avg Revenue beat(8)0.52%
Revenue beat(12)6
Avg Revenue beat(12)1.84%
Revenue beat(16)7
Avg Revenue beat(16)0.53%
PT rev (1m)3.4%
PT rev (3m)9.73%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-6.53%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.93%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.33%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.69 | ||
| Fwd PE | 27.06 | ||
| P/S | 3.25 | ||
| P/FCF | 30.49 | ||
| P/OCF | 25.3 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 23.13 |
EPS(TTM)10.46
EY3.61%
EPS(NY)10.71
Fwd EY3.7%
FCF(TTM)9.5
FCFY3.28%
OCF(TTM)11.45
OCFY3.95%
SpS89.12
BVpS-8.71
TBVpS-74.88
PEG (NY)N/A
PEG (5Y)2.52
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.56% | ||
| ROE | N/A | ||
| ROCE | 21.29% | ||
| ROIC | 17.77% | ||
| ROICexc | 18.18% | ||
| ROICexgc | N/A | ||
| OM | 15.21% | ||
| PM (TTM) | 11.18% | ||
| GM | 20.47% | ||
| FCFM | 10.66% |
ROA(3y)8.6%
ROA(5y)5.96%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)14.19%
ROIC(5y)10.96%
ROICexc(3y)14.67%
ROICexc(5y)11.3%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)16.99%
ROCE(5y)13.12%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y73.17%
ROICexc growth 5Y8.46%
OM growth 3Y31.06%
OM growth 5Y6.38%
PM growth 3YN/A
PM growth 5Y7.19%
GM growth 3Y8.89%
GM growth 5Y4.07%
F-Score5
Asset Turnover0.94
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 5.16 | ||
| Debt/EBITDA | 3.13 | ||
| Cap/Depr | 189.51% | ||
| Cap/Sales | 2.19% | ||
| Interest Coverage | 6.73 | ||
| Cash Conversion | 78.53% | ||
| Profit Quality | 95.38% | ||
| Current Ratio | 0.42 | ||
| Quick Ratio | 0.42 | ||
| Altman-Z | 3.75 |
F-Score5
WACC8.52%
ROIC/WACC2.09
Cap/Depr(3y)114.31%
Cap/Depr(5y)106.64%
Cap/Sales(3y)1.61%
Cap/Sales(5y)1.84%
Profit Quality(3y)88.25%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)24.23%
EPS 3YN/A
EPS 5Y11.01%
EPS Q2Q%7.11%
EPS Next Y-6.8%
EPS Next 2Y3.31%
EPS Next 3Y6.27%
EPS Next 5Y10.82%
Revenue 1Y (TTM)5.2%
Revenue growth 3Y30.91%
Revenue growth 5Y2.7%
Sales Q2Q%5.52%
Revenue Next Year4.9%
Revenue Next 2Y5.54%
Revenue Next 3Y5.67%
Revenue Next 5Y4.99%
EBIT growth 1Y-10.23%
EBIT growth 3Y71.57%
EBIT growth 5Y9.25%
EBIT Next Year23.5%
EBIT Next 3Y12.45%
EBIT Next 5Y12.25%
FCF growth 1Y26.13%
FCF growth 3Y21.81%
FCF growth 5Y8.58%
OCF growth 1Y35.17%
OCF growth 3Y24.59%
OCF growth 5Y6.11%