MARRIOTT INTERNATIONAL -CL A (MAR) Stock Fundamental Analysis
NASDAQ:MAR - US5719032022 - Common Stock
267.85 USD
-0.75 (-0.28%)
267.85 USD
0 (0%)
Taking everything into account, MAR scores 4 out of 10 in our fundamental rating. MAR was compared to 131 industry peers in the Hotels, Restaurants & Leisure industry. MAR has only an average score on both its financial health and profitability. 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.
MAR had a positive operating cash flow in the past year.
Of the past 5 years MAR 4 years were profitable.
MAR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
MAR's Return On Assets of 9.02% is amongst the best of the industry. MAR outperforms 83.97% of its industry peers.
Looking at the Return On Invested Capital, with a value of 17.19%, MAR belongs to the top of the industry, outperforming 87.02% of the companies in the same industry.
MAR had an Average Return On Invested Capital over the past 3 years of 17.69%. This is in line with the industry average of 15.87%.
| 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
MAR's Profit Margin of 9.60% is fine compared to the rest of the industry. MAR outperforms 73.28% of its industry peers.
MAR's Profit Margin has improved in the last couple of years.
MAR's Operating Margin of 15.38% is fine compared to the rest of the industry. MAR outperforms 68.70% of its industry peers.
MAR's Operating Margin has improved in the last couple of years.
MAR has a Gross Margin of 20.24%. 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 | 15.38% | ||
| 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
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
MAR has an Altman-Z score of 3.57. This indicates that MAR is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.57, MAR is doing good in the industry, outperforming 78.63% of the companies in the same industry.
The Debt to FCF ratio of MAR is 9.31, which is on the high side as it means it would take MAR, 9.31 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 9.31, MAR is in the better half of the industry, outperforming 63.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 9.31 | ||
| Altman-Z | 3.57 |
ROIC/WACC1.93
WACC8.89%
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.
MAR's Current ratio of 0.49 is on the low side compared to the rest of the industry. MAR is outperformed by 77.10% of its industry peers.
MAR has a Quick 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.
With a Quick ratio value of 0.49, MAR is not doing good in the industry: 73.28% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.49 | ||
| Quick Ratio | 0.49 |
3. Growth
3.1 Past
The earnings per share for MAR have decreased by -6.11% in the last year.
MAR shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.22% yearly.
The Revenue has been growing slightly by 5.12% in the past year.
The Revenue has been growing slightly by 3.66% on average over the past years.
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.
The Revenue is expected to grow by 3.96% on average over the next years.
EPS Next Y8.77%
EPS Next 2Y10.72%
EPS Next 3Y11.62%
EPS Next 5Y14.24%
Revenue Next Year4.91%
Revenue Next 2Y5.31%
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 27.67, which means the current valuation is very expensive for MAR.
MAR's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of MAR to the average of the S&P500 Index (27.08), we can say MAR is valued inline with the index average.
A Price/Forward Earnings ratio of 23.39 indicates a rather expensive valuation of MAR.
The rest of the industry has a similar Price/Forward Earnings ratio as MAR.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.67, MAR is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.67 | ||
| Fwd PE | 23.39 |
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 64.89% of the companies in the same industry.
MAR's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 43.23 | ||
| EV/EBITDA | 19.15 |
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
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 4.19, MAR pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.34, MAR's dividend is way lower than the S&P500 average.
| 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 paid a dividend for at least 10 years, which is a reliable track record.
The dividend of MAR decreased in the last 3 years.
Dividend Growth(5Y)5.43%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
28.74% 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.
DP28.74%
EPS Next 2Y10.72%
EPS Next 3Y11.62%
267.85
-0.75 (-0.28%)
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 Cap72.71B
Analysts70.63
Price Target288.21 (7.6%)
Short Float %2.94%
Short Ratio4.52
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)0.45%
PT rev (3m)3.69%
EPS NQ rev (1m)-3.64%
EPS NQ rev (3m)-5.3%
EPS NY rev (1m)-0.11%
EPS NY rev (3m)0.68%
Revenue NQ rev (1m)-0.79%
Revenue NQ rev (3m)-2.24%
Revenue NY rev (1m)0.29%
Revenue NY rev (3m)0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.67 | ||
| Fwd PE | 23.39 | ||
| P/S | 2.83 | ||
| P/FCF | 43.23 | ||
| P/OCF | 29.22 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.15 |
EPS(TTM)9.68
EY3.61%
EPS(NY)11.45
Fwd EY4.28%
FCF(TTM)6.2
FCFY2.31%
OCF(TTM)9.17
OCFY3.42%
SpS94.64
BVpS-10.92
TBVpS-79.78
PEG (NY)3.16
PEG (5Y)3
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 | 3.57 |
F-Score5
WACC8.89%
ROIC/WACC1.93
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 Year4.91%
Revenue Next 2Y5.31%
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%