MARRIOTT INTERNATIONAL -CL A (MAR) Stock Fundamental Analysis
USA - NASDAQ:MAR - US5719032022 - Common Stock
268.52 USD
+4.57 (+1.73%)
268.52 USD
0 (0%)
MAR gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 134 industry peers in the Hotels, Restaurants & Leisure industry. While MAR has a great profitability rating, there are some minor concerns on its financial health. While showing a medium growth rate, MAR is valued expensive at the moment.
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
MAR's Return On Assets of 9.02% is amongst the best of the industry. MAR outperforms 82.84% of its industry peers.
The Return On Invested Capital of MAR (17.19%) is better than 86.57% of its industry peers.
MAR had an Average Return On Invested Capital over the past 3 years of 17.69%. This is above the industry average of 15.68%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.02% | ||
| ROE | N/A | ||
| ROIC | 17.19% |
ROA(3y)10.19%
ROA(5y)6.76%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)17.69%
ROIC(5y)12.83%
1.3 Margins
The Profit Margin of MAR (9.60%) is better than 73.13% of its industry peers.
In the last couple of years the Profit Margin of MAR has grown nicely.
MAR's Operating Margin of 15.38% is fine compared to the rest of the industry. MAR outperforms 68.66% of its industry peers.
MAR's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 20.24%, MAR is doing worse than 85.82% of the companies in the same industry.
In the last couple of years the Gross Margin of MAR has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.38% | ||
| PM (TTM) | 9.6% | ||
| GM | 20.24% |
OM growth 3Y6.48%
OM growth 5Y10.63%
PM growth 3Y6.06%
PM growth 5Y9.28%
GM growth 3Y0.18%
GM growth 5Y5.79%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so MAR is creating value.
MAR has less shares outstanding than it did 1 year ago.
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 3.58 indicates that MAR is not in any danger for bankruptcy at the moment.
MAR has a Altman-Z score of 3.58. This is in the better half of the industry: MAR outperforms 78.36% of its industry peers.
MAR has a debt to FCF ratio of 9.31. This is a negative value and a sign of low solvency as MAR would need 9.31 years to pay back of all of its debts.
MAR has a Debt to FCF ratio of 9.31. This is in the better half of the industry: MAR outperforms 61.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 9.31 | ||
| Altman-Z | 3.58 |
ROIC/WACC1.96
WACC8.79%
2.3 Liquidity
MAR has a Current Ratio of 0.49. This is a bad value and indicates that MAR is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.49, MAR is doing worse than 76.87% of the companies in the same industry.
A Quick Ratio of 0.49 indicates that MAR may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.49, MAR is doing worse than 73.13% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.49 | ||
| Quick Ratio | 0.49 |
3. Growth
3.1 Past
MAR shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -6.11%.
The Earnings Per Share has been growing by 9.22% on average over the past years. This is quite good.
Looking at the last year, MAR shows a small growth in Revenue. The Revenue has grown by 5.12% in the last year.
Measured over the past years, MAR shows a small growth in Revenue. The Revenue has been growing by 3.66% on average per year.
EPS 1Y (TTM)-6.11%
EPS 3Y43.21%
EPS 5Y9.22%
EPS Q2Q%6%
Revenue 1Y (TTM)5.12%
Revenue growth 3Y21.9%
Revenue growth 5Y3.66%
Sales Q2Q%4.74%
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 14.24% yearly.
MAR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.96% yearly.
EPS Next Y8.77%
EPS Next 2Y10.72%
EPS Next 3Y11.62%
EPS Next 5Y14.24%
Revenue Next Year4.78%
Revenue Next 2Y5.15%
Revenue Next 3Y5.29%
Revenue Next 5Y3.96%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 27.74, which means the current valuation is very expensive for MAR.
MAR's Price/Earnings ratio is in line with the industry average.
MAR's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.38.
The Price/Forward Earnings ratio is 23.45, which indicates a rather expensive current valuation of MAR.
MAR's Price/Forward Earnings ratio is in line with the industry average.
MAR is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.86, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.74 | ||
| Fwd PE | 23.45 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MAR is valued a bit more expensive than the industry average as 64.18% of the companies are valued more cheaply.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MAR is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 43.34 | ||
| EV/EBITDA | 19.19 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
MAR has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)3.16
PEG (5Y)3.01
EPS Next 2Y10.72%
EPS Next 3Y11.62%
5. Dividend
5.1 Amount
MAR has a Yearly Dividend Yield of 1.02%.
Compared to an average industry Dividend Yield of 4.92, MAR pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.02, MAR pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.02% |
5.2 History
The dividend of MAR has a limited annual growth rate of 5.43%.
MAR has been paying a dividend for at least 10 years, so it has a reliable track record.
MAR has decreased its dividend in the last 3 years.
Dividend Growth(5Y)5.43%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
MAR pays out 28.74% 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.
DP28.74%
EPS Next 2Y10.72%
EPS Next 3Y11.62%
268.52
+4.57 (+1.73%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners63.08%
Inst Owner Change0.35%
Ins Owners1.34%
Ins Owner Change-0.09%
Market Cap72.89B
Analysts70.63
Price Target288.44 (7.42%)
Short Float %3.11%
Short Ratio5.21
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.02% |
Yearly Dividend2.4
Dividend Growth(5Y)5.43%
DP28.74%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.02%
Min EPS beat(2)0.07%
Max EPS beat(2)1.98%
EPS beat(4)3
Avg EPS beat(4)0.2%
Min EPS beat(4)-3.05%
Max EPS beat(4)1.98%
EPS beat(8)5
Avg EPS beat(8)8.01%
EPS beat(12)8
Avg EPS beat(12)7.04%
EPS beat(16)11
Avg EPS beat(16)10.39%
Revenue beat(2)2
Avg Revenue beat(2)0.33%
Min Revenue beat(2)0.13%
Max Revenue beat(2)0.53%
Revenue beat(4)2
Avg Revenue beat(4)-0.19%
Min Revenue beat(4)-1.23%
Max Revenue beat(4)0.53%
Revenue beat(8)2
Avg Revenue beat(8)-0.73%
Revenue beat(12)5
Avg Revenue beat(12)0.25%
Revenue beat(16)9
Avg Revenue beat(16)1.57%
PT rev (1m)-0.43%
PT rev (3m)2.49%
EPS NQ rev (1m)0.09%
EPS NQ rev (3m)-3.95%
EPS NY rev (1m)0%
EPS NY rev (3m)0.21%
Revenue NQ rev (1m)0.11%
Revenue NQ rev (3m)-0.75%
Revenue NY rev (1m)-0.12%
Revenue NY rev (3m)0.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.74 | ||
| Fwd PE | 23.45 | ||
| P/S | 2.84 | ||
| P/FCF | 43.34 | ||
| P/OCF | 29.3 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.19 |
EPS(TTM)9.68
EY3.6%
EPS(NY)11.45
Fwd EY4.26%
FCF(TTM)6.2
FCFY2.31%
OCF(TTM)9.17
OCFY3.41%
SpS94.64
BVpS-10.92
TBVpS-79.78
PEG (NY)3.16
PEG (5Y)3.01
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.02% | ||
| ROE | N/A | ||
| ROCE | 20.63% | ||
| ROIC | 17.19% | ||
| ROICexc | 17.82% | ||
| ROICexgc | N/A | ||
| OM | 15.38% | ||
| PM (TTM) | 9.6% | ||
| GM | 20.24% | ||
| FCFM | 6.55% |
ROA(3y)10.19%
ROA(5y)6.76%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)17.69%
ROIC(5y)12.83%
ROICexc(3y)18.12%
ROICexc(5y)13.24%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)21.24%
ROCE(5y)15.4%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y31.33%
ROICexc growth 5Y16%
OM growth 3Y6.48%
OM growth 5Y10.63%
PM growth 3Y6.06%
PM growth 5Y9.28%
GM growth 3Y0.18%
GM growth 5Y5.79%
F-Score5
Asset Turnover0.94
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 9.31 | ||
| Debt/EBITDA | 3.18 | ||
| Cap/Depr | 128.14% | ||
| Cap/Sales | 3.14% | ||
| Interest Coverage | 6.33 | ||
| Cash Conversion | 54.34% | ||
| Profit Quality | 68.18% | ||
| Current Ratio | 0.49 | ||
| Quick Ratio | 0.49 | ||
| Altman-Z | 3.58 |
F-Score5
WACC8.79%
ROIC/WACC1.96
Cap/Depr(3y)144.45%
Cap/Depr(5y)104.73%
Cap/Sales(3y)2.16%
Cap/Sales(5y)1.82%
Profit Quality(3y)86.15%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-6.11%
EPS 3Y43.21%
EPS 5Y9.22%
EPS Q2Q%6%
EPS Next Y8.77%
EPS Next 2Y10.72%
EPS Next 3Y11.62%
EPS Next 5Y14.24%
Revenue 1Y (TTM)5.12%
Revenue growth 3Y21.9%
Revenue growth 5Y3.66%
Sales Q2Q%4.74%
Revenue Next Year4.78%
Revenue Next 2Y5.15%
Revenue Next 3Y5.29%
Revenue Next 5Y3.96%
EBIT growth 1Y0.64%
EBIT growth 3Y29.79%
EBIT growth 5Y14.68%
EBIT Next Year28.92%
EBIT Next 3Y13.4%
EBIT Next 5Y12.9%
FCF growth 1Y-31.23%
FCF growth 3Y26.22%
FCF growth 5Y14.14%
OCF growth 1Y-12.79%
OCF growth 3Y32.68%
OCF growth 5Y10.28%