MARRIOTT INTERNATIONAL -CL A (MAR)
US5719032022 - Common Stock
Overall MAR gets a fundamental rating of 5 out of 10. We evaluated MAR against 135 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
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.
MAR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of MAR (12.01%) is better than 88.06% of its industry peers.
The Return On Invested Capital of MAR (18.29%) is better than 90.30% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MAR is above the industry average of 10.18%.
The 3 year average ROIC (14.19%) for MAR is below the current ROIC(18.29%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.01% | ||
| ROE | N/A | ||
| ROIC | 18.29% |
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 an excellent Profit Margin value of 13.00%, MAR belongs to the best of the industry, outperforming 81.34% of the companies in the same industry.
In the last couple of years the Profit Margin of MAR has grown nicely.
MAR's Operating Margin of 16.55% is fine compared to the rest of the industry. MAR outperforms 71.64% of its industry peers.
MAR's Operating Margin has improved in the last couple of years.
MAR has a Gross Margin of 21.61%. This is amonst the worse of the industry: MAR underperforms 84.33% of its industry peers.
In the last couple of years the Gross Margin of MAR has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.55% | ||
| PM (TTM) | 13% | ||
| GM | 21.61% |
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so MAR is creating value.
The number of shares outstanding for MAR has been reduced compared to 1 year ago.
MAR has less shares outstanding than it did 5 years ago.
MAR has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.61 indicates that MAR is not in any danger for bankruptcy at the moment.
MAR has a Altman-Z score of 3.61. This is amongst the best in the industry. MAR outperforms 85.07% of its industry peers.
The Debt to FCF ratio of MAR is 4.37, which is a neutral value as it means it would take MAR, 4.37 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 4.37, MAR is doing good in the industry, outperforming 76.87% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.37 | ||
| Altman-Z | 3.61 |
ROIC/WACC2.11
WACC8.65%
2.3 Liquidity
MAR has a Current Ratio of 0.43. This is a bad value and indicates that MAR is not financially healthy enough and could expect problems in meeting its short term obligations.
MAR has a worse Current ratio (0.43) than 84.33% of its industry peers.
MAR has a Quick Ratio of 0.43. 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 Quick ratio, with a value of 0.43, MAR is doing worse than 76.87% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.43 | ||
| Quick Ratio | 0.43 |
3. Growth
3.1 Past
MAR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 49.70%, which is quite impressive.
The Earnings Per Share has been growing by 11.01% on average over the past years. This is quite good.
The Revenue has grown by 14.15% in the past year. This is quite good.
The Revenue has been growing slightly by 2.70% on average over the past years.
EPS 1Y (TTM)49.7%
EPS 3YN/A
EPS 5Y11.01%
EPS growth Q2Q82.14%
Revenue 1Y (TTM)14.15%
Revenue growth 3Y30.91%
Revenue growth 5Y2.7%
Revenue growth Q2Q2.9%
3.2 Future
Based on estimates for the next years, MAR will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.43% on average per year.
MAR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.95% yearly.
EPS Next Y-4.87%
EPS Next 2Y4.03%
EPS Next 3Y7.09%
EPS Next 5Y10.43%
Revenue Next Year6.18%
Revenue Next 2Y6.42%
Revenue Next 3Y5.96%
Revenue Next 5Y5.95%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 24.01 indicates a rather expensive valuation of MAR.
The rest of the industry has a similar Price/Earnings ratio as MAR.
MAR is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 24.84, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 25.24 indicates a quite expensive valuation of MAR.
MAR's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of MAR to the average of the S&P500 Index (21.35), we can say MAR is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.01 | ||
| Fwd PE | 25.24 |
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 67.16% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, MAR is valued a bit cheaper than the industry average as 61.94% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.54 | ||
| EV/EBITDA | 19.27 |
4.3 Compensation for Growth
The decent profitability rating of MAR may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.18
EPS Next 2Y4.03%
EPS Next 3Y7.09%
5. Dividend
5.1 Amount
MAR has a yearly dividend return of 0.86%, which is pretty low.
MAR's Dividend Yield is a higher than the industry average which is at 2.56.
Compared to an average S&P500 Dividend Yield of 2.41, MAR's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.86% |
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 recently.
Dividend Growth(5Y)4.64%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
MAR pays out 19.04% of its income as dividend. This is a sustainable payout ratio.
MAR's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP19.04%
EPS Next 2Y4.03%
EPS Next 3Y7.09%
MARRIOTT INTERNATIONAL -CL A
NASDAQ:MAR (4/26/2024, 7:02:31 PM)
After market: 240.84 0 (0%)240.84
-1.1 (-0.45%)
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 Cap69.42B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.86% |
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)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(16)
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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 | 24.01 | ||
| Fwd PE | 25.24 | ||
| 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)2.18
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.01% | ||
| ROE | N/A | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 16.55% | ||
| PM (TTM) | 13% | ||
| GM | 21.61% | ||
| 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 Turnover0.92
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 | 0.43 | ||
| Quick Ratio | 0.43 | ||
| 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)
Growth
EPS 1Y (TTM)49.7%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y-4.87%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)14.15%
Revenue growth 3Y30.91%
Revenue growth 5Y
Revenue growth 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