MARRIOTT INTERNATIONAL -CL A (MAR)
US5719032022 - Common Stock
MAR gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 133 industry peers in the Hotels, Restaurants & Leisure industry. MAR scores excellent on profitability, but 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
In the past year MAR was profitable.
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
The Return On Assets of MAR (10.56%) is better than 85.71% of its industry peers.
MAR's Return On Invested Capital of 17.77% is amongst the best of the industry. MAR outperforms 89.47% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MAR is above the industry average of 10.54%.
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
With a decent Profit Margin value of 11.18%, MAR is doing good in the industry, outperforming 77.44% of the companies in the same industry.
MAR's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 15.21%, MAR is doing good in the industry, outperforming 68.42% of the companies in the same industry.
MAR's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 20.47%, MAR is not doing good in the industry: 85.71% of the companies in the same industry are doing better.
MAR's Gross Margin has improved in the last couple of years.
| 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
MAR has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, MAR has less shares outstanding
Compared to 5 years ago, MAR has less shares outstanding
MAR has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.73 indicates that MAR is not in any danger for bankruptcy at the moment.
MAR has a better Altman-Z score (3.73) than 81.20% of its industry peers.
The Debt to FCF ratio of MAR is 5.16, which is a neutral value as it means it would take MAR, 5.16 years of fcf income to pay off all of its debts.
MAR's Debt to FCF ratio of 5.16 is fine compared to the rest of the industry. MAR outperforms 73.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 5.16 | ||
| Altman-Z | 3.73 |
ROIC/WACC2.08
WACC8.55%
2.3 Liquidity
A Current Ratio of 0.42 indicates that MAR may have some problems paying its short term obligations.
With a Current ratio value of 0.42, MAR is not doing good in the industry: 79.70% of the companies in the same industry are doing better.
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.
The Quick ratio of MAR (0.42) is worse than 77.44% of its industry peers.
| 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.
MAR shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.01% yearly.
Looking at the last year, MAR shows a small growth in Revenue. The Revenue has grown by 5.20% in the last year.
The Revenue has been growing slightly by 2.70% on average over the past years.
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 2Y5.53%
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
A Price/Earnings ratio of 27.38 indicates a quite expensive valuation of MAR.
MAR's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.54, MAR is valued at the same level.
The Price/Forward Earnings ratio is 26.75, which means the current valuation is very expensive for MAR.
The rest of the industry has a similar Price/Forward Earnings ratio as MAR.
When comparing the Price/Forward Earnings ratio of MAR to the average of the S&P500 Index (23.99), we can say MAR is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.38 | ||
| Fwd PE | 26.75 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MAR indicates a slightly more expensive valuation: MAR is more expensive than 70.68% of the companies listed in the same industry.
MAR's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. MAR is cheaper than 63.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.15 | ||
| EV/EBITDA | 22.91 |
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)2.49
EPS Next 2Y3.31%
EPS Next 3Y6.27%
5. Dividend
5.1 Amount
With a yearly dividend of 0.90%, MAR is not a good candidate for dividend investing.
MAR's Dividend Yield is a higher than the industry average which is at 2.95.
With a Dividend Yield of 0.90, MAR pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.9% |
5.2 History
The dividend of MAR has a limited annual growth rate of 4.64%.
MAR has paid a dividend for at least 10 years, which is a reliable track record.
MAR has decreased its dividend 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 (12/24/2024, 8:26:33 PM)
After market: 286.01 -0.38 (-0.13%)286.39
+2.76 (+0.97%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners62.04%
Inst Owner Change-2.31%
Ins Owners1.17%
Ins Owner Change-0.1%
Market Cap79.58B
Analysts69.03
Price Target269.93 (-5.75%)
Short Float %2.41%
Short Ratio4.41
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.9% |
Dividend Growth(5Y)4.64%
DP23.77%
Div Incr Years2
Div Non Decr Years2
Ex-Date
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)6.12%
PT rev (3m)8.59%
EPS NQ rev (1m)-0.15%
EPS NQ rev (3m)-6.53%
EPS NY rev (1m)-0.06%
EPS NY rev (3m)-0.93%
Revenue NQ rev (1m)-0.19%
Revenue NQ rev (3m)-3.33%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-0.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.38 | ||
| Fwd PE | 26.75 | ||
| P/S | 3.21 | ||
| P/FCF | 30.15 | ||
| P/OCF | 25.01 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 22.91 |
EPS(TTM)10.46
EY3.65%
EPS(NY)10.71
Fwd EY3.74%
FCF(TTM)9.5
FCFY3.32%
OCF(TTM)11.45
OCFY4%
SpS89.12
BVpS-8.71
TBVpS-74.88
PEG (NY)N/A
PEG (5Y)2.49
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 | 3.73 |
F-Score5
WACC8.55%
ROIC/WACC2.08
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 2Y5.53%
Revenue Next 3Y5.67%
Revenue Next 5Y4.99%
EBIT growth 1Y-10.23%
EBIT growth 3Y71.57%
EBIT growth 5Y9.25%
EBIT Next Year23.57%
EBIT Next 3Y12.48%
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%