MARRIOTT INTERNATIONAL -CL A (MAR)
US5719032022 - Common Stock
MAR gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 135 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.
MAR had positive earnings in 4 of the past 5 years.
In the past 5 years MAR always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of MAR (10.56%) is better than 85.82% of its industry peers.
MAR has a better Return On Invested Capital (17.77%) than 90.30% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for MAR is above the industry average of 10.46%.
The last Return On Invested Capital (17.77%) for MAR is above the 3 year average (14.19%), which is a sign of increasing profitability.
| 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 78.36% of its industry peers.
In the last couple of years the Profit Margin of MAR has grown nicely.
MAR has a Operating Margin of 15.21%. This is in the better half of the industry: MAR outperforms 67.16% of its industry peers.
In the last couple of years the Operating Margin of MAR has grown nicely.
MAR has a worse Gross Margin (20.47%) than 85.82% of its industry peers.
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
The debt/assets ratio for MAR is higher compared to a year ago.
2.2 Solvency
MAR has an Altman-Z score of 3.71. This indicates that MAR is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.71, MAR belongs to the top of the industry, outperforming 83.58% of the companies in the same industry.
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.
MAR has a better Debt to FCF ratio (5.16) than 76.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 5.16 | ||
| Altman-Z | 3.71 |
ROIC/WACC2.12
WACC8.39%
2.3 Liquidity
MAR has a Current 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 Current ratio of MAR (0.42) is worse than 82.84% of its industry peers.
A Quick Ratio of 0.42 indicates that MAR may have some problems paying its short term obligations.
With a Quick ratio value of 0.42, MAR is not doing good in the industry: 78.36% 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
The Earnings Per Share has grown by an impressive 24.23% over the past year.
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
The Earnings Per Share is expected to grow by 11.29% on average over the next years. This is quite good.
Based on estimates for the next years, MAR will show a small growth in Revenue. The Revenue will grow by 4.33% on average per year.
EPS Next Y-6.75%
EPS Next 2Y3.33%
EPS Next 3Y6.41%
EPS Next 5Y11.29%
Revenue Next Year4.92%
Revenue Next 2Y5.5%
Revenue Next 3Y5.45%
Revenue Next 5Y4.33%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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
Based on the Price/Earnings ratio of 27.16, the valuation of MAR can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of MAR is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 28.96. MAR is around the same levels.
MAR is valuated quite expensively with a Price/Forward Earnings ratio of 26.53.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MAR is on the same level as its industry peers.
MAR's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.16 | ||
| Fwd PE | 26.53 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MAR is valued a bit more expensive than 72.39% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MAR indicates a somewhat cheap valuation: MAR is cheaper than 64.18% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.91 | ||
| EV/EBITDA | 22.71 |
4.3 Compensation for Growth
The decent profitability rating of MAR may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.47
EPS Next 2Y3.33%
EPS Next 3Y6.41%
5. Dividend
5.1 Amount
MAR has a yearly dividend return of 0.89%, which is pretty low.
Compared to an average industry Dividend Yield of 2.83, MAR pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.23, MAR's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.89% |
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.
MAR has decreased its dividend recently.
Dividend Growth(5Y)4.64%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
23.77% of the earnings are spent on dividend by MAR. This is a low number and sustainable payout ratio.
MAR's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP23.77%
EPS Next 2Y3.33%
EPS Next 3Y6.41%
MARRIOTT INTERNATIONAL -CL A
NASDAQ:MAR (11/22/2024, 9:56:06 AM)
284.14
+0.7 (+0.25%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap78.96B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.89% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.16 | ||
| Fwd PE | 26.53 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)2.47
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.56% | ||
| ROE | N/A | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 15.21% | ||
| PM (TTM) | 11.18% | ||
| GM | 20.47% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.94
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.42 | ||
| Quick Ratio | 0.42 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)24.23%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y-6.75%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)5.2%
Revenue growth 3Y30.91%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y