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%)
Overall MAR gets a fundamental rating of 5 out of 10. We evaluated MAR 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
MAR had positive earnings in the past year.
MAR had a positive operating cash flow in the past year.
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
MAR has a Return On Assets of 9.02%. This is amongst the best in the industry. MAR outperforms 82.71% of its industry peers.
With an excellent Return On Invested Capital value of 17.19%, MAR belongs to the best of the industry, outperforming 86.47% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for MAR 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
Looking at the Profit Margin, with a value of 9.60%, MAR is in the better half of the industry, outperforming 72.93% 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 15.38% is fine compared to the rest of the industry. MAR outperforms 68.42% of its industry peers.
MAR's Operating Margin has improved in the last couple of years.
MAR's Gross Margin of 20.24% is on the low side compared to the rest of the industry. MAR is outperformed by 86.47% of its industry peers.
MAR's Gross Margin has improved in the last couple of years.
| 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
MAR has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for MAR has been reduced compared to 1 year ago.
Compared to 5 years ago, MAR has less shares outstanding
Compared to 1 year ago, MAR has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.55 indicates that MAR is not in any danger for bankruptcy at the moment.
MAR's Altman-Z score of 3.55 is fine compared to the rest of the industry. MAR outperforms 77.44% of its industry peers.
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.
The Debt to FCF ratio of MAR (9.31) is better than 62.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 9.31 | ||
| Altman-Z | 3.55 |
ROIC/WACC1.96
WACC8.76%
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.
The Current ratio of MAR (0.49) is worse than 76.69% of its industry peers.
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 72.93% of the companies in the same industry.
| 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.
The Earnings Per Share has been growing by 9.22% on average over the past years. This is quite good.
The Revenue has been growing slightly by 5.12% in the past 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
The Earnings Per Share is expected to grow by 14.24% 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 3.96% on average per year.
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
MAR is valuated quite expensively with a Price/Earnings ratio of 27.74.
MAR's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of MAR to the average of the S&P500 Index (27.38), we can say MAR is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 23.45, the valuation of MAR can be described as rather expensive.
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 22.86.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.74 | ||
| Fwd PE | 23.45 |
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 64.66% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as MAR.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 43.34 | ||
| EV/EBITDA | 18.92 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates MAR does not grow enough to justify the current Price/Earnings ratio.
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 1.00%. Purely for dividend investing, there may be better candidates out there.
MAR's Dividend Yield is a higher than the industry average which is at 3.93.
With a Dividend Yield of 1.00, MAR pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1% |
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.
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.
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%
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% |
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)2.74%
EPS NQ rev (1m)-0.11%
EPS NQ rev (3m)-3.95%
EPS NY rev (1m)-0.11%
EPS NY rev (3m)0.68%
Revenue NQ rev (1m)0.15%
Revenue NQ rev (3m)-0.75%
Revenue NY rev (1m)0.27%
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 | 18.92 |
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 | 3.55 |
F-Score5
WACC8.76%
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%