MARRIOTT INTERNATIONAL -CL A (MAR) Stock Fundamental Analysis
NASDAQ:MAR - Nasdaq - US5719032022 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to MAR. MAR was compared to 133 industry peers in the Hotels, Restaurants & Leisure industry. MAR scores excellent on profitability, but 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.
MAR had a positive operating cash flow in the past year.
MAR had positive earnings in 4 of the past 5 years.
Each year in the past 5 years MAR had a positive operating cash flow.
1.2 Ratios
The Return On Assets of MAR (9.29%) is better than 84.21% of its industry peers.
With an excellent Return On Invested Capital value of 17.73%, MAR belongs to the best of the industry, outperforming 88.72% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for MAR is above the industry average of 13.81%.
The last Return On Invested Capital (17.73%) for MAR is above the 3 year average (17.69%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.29% | ||
| ROE | N/A | ||
| ROIC | 17.73% |
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 9.75% is fine compared to the rest of the industry. MAR outperforms 74.44% of its industry peers.
MAR's Profit Margin has improved in the last couple of years.
MAR's Operating Margin of 15.40% is fine compared to the rest of the industry. MAR outperforms 69.17% of its industry peers.
In the last couple of years the Operating Margin of MAR has grown nicely.
MAR has a worse Gross Margin (20.31%) than 85.71% of its industry peers.
MAR's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.4% | ||
| PM (TTM) | 9.75% | ||
| GM | 20.31% |
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.
Compared to 5 years ago, MAR has less shares outstanding
MAR has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.67 indicates that MAR is not in any danger for bankruptcy at the moment.
MAR has a Altman-Z score of 3.67. This is in the better half of the industry: MAR outperforms 78.95% of its industry peers.
MAR has a debt to FCF ratio of 8.18. This is a slightly negative value and a sign of low solvency as MAR would need 8.18 years to pay back of all of its debts.
The Debt to FCF ratio of MAR (8.18) is better than 67.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 8.18 | ||
| Altman-Z | 3.67 |
ROIC/WACC2.17
WACC8.16%
2.3 Liquidity
MAR has a Current Ratio of 0.45. 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 0.45 is on the low side compared to the rest of the industry. MAR is outperformed by 78.95% of its industry peers.
MAR has a Quick Ratio of 0.45. 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 Quick ratio of 0.45. This is in the lower half of the industry: MAR underperforms 73.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.45 | ||
| Quick Ratio | 0.45 |
3. Growth
3.1 Past
MAR shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -5.36%.
Measured over the past years, MAR shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.22% on average per year.
Looking at the last year, MAR shows a small growth in Revenue. The Revenue has grown by 5.45% 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)-5.36%
EPS 3Y43.21%
EPS 5Y9.22%
EPS Q2Q%8.92%
Revenue 1Y (TTM)5.45%
Revenue growth 3Y21.9%
Revenue growth 5Y3.66%
Sales Q2Q%4.79%
3.2 Future
The Earnings Per Share is expected to grow by 14.54% 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 3.97% on average per year.
EPS Next Y8.54%
EPS Next 2Y11.05%
EPS Next 3Y11.77%
EPS Next 5Y14.55%
Revenue Next Year4.61%
Revenue Next 2Y5.25%
Revenue Next 3Y5.38%
Revenue Next 5Y3.97%
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 accelerating.
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 29.38.
MAR's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.45, MAR is valued at the same level.
A Price/Forward Earnings ratio of 24.31 indicates a rather expensive valuation of MAR.
The rest of the industry has a similar Price/Forward Earnings ratio as MAR.
MAR's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.90.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.38 | ||
| Fwd PE | 24.31 |
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 68.42% 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 | 41.66 | ||
| EV/EBITDA | 20.42 |
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.
The decent profitability rating of MAR may justify a higher PE ratio.
PEG (NY)3.44
PEG (5Y)3.19
EPS Next 2Y11.05%
EPS Next 3Y11.77%
5. Dividend
5.1 Amount
With a yearly dividend of 0.99%, MAR is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.70, MAR pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.42, MAR's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.99% |
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 28.47% 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.
DP28.47%
EPS Next 2Y11.05%
EPS Next 3Y11.77%
280.03
+2.51 (+0.9%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners62.96%
Inst Owner Change0.39%
Ins Owners1.34%
Ins Owner Change0.21%
Market Cap76.70B
Analysts70.97
Price Target281.44 (0.5%)
Short Float %2.96%
Short Ratio4.05
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.99% |
Yearly Dividend2.4
Dividend Growth(5Y)5.43%
DP28.47%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.89%
Min EPS beat(2)1.8%
Max EPS beat(2)1.98%
EPS beat(4)3
Avg EPS beat(4)0.21%
Min EPS beat(4)-3.05%
Max EPS beat(4)1.98%
EPS beat(8)5
Avg EPS beat(8)8.35%
EPS beat(12)8
Avg EPS beat(12)8.23%
EPS beat(16)11
Avg EPS beat(16)14.98%
Revenue beat(2)1
Avg Revenue beat(2)0.16%
Min Revenue beat(2)-0.2%
Max Revenue beat(2)0.53%
Revenue beat(4)1
Avg Revenue beat(4)-0.64%
Min Revenue beat(4)-1.66%
Max Revenue beat(4)0.53%
Revenue beat(8)2
Avg Revenue beat(8)-0.69%
Revenue beat(12)5
Avg Revenue beat(12)0.85%
Revenue beat(16)8
Avg Revenue beat(16)1.39%
PT rev (1m)1.26%
PT rev (3m)-5.95%
EPS NQ rev (1m)0.58%
EPS NQ rev (3m)-4.46%
EPS NY rev (1m)0.47%
EPS NY rev (3m)-1.35%
Revenue NQ rev (1m)-0.22%
Revenue NQ rev (3m)-1.64%
Revenue NY rev (1m)-0.21%
Revenue NY rev (3m)-0.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.38 | ||
| Fwd PE | 24.31 | ||
| P/S | 3.02 | ||
| P/FCF | 41.66 | ||
| P/OCF | 29.31 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.42 |
EPS(TTM)9.53
EY3.4%
EPS(NY)11.52
Fwd EY4.11%
FCF(TTM)6.72
FCFY2.4%
OCF(TTM)9.55
OCFY3.41%
SpS92.68
BVpS-11.57
TBVpS-78.73
PEG (NY)3.44
PEG (5Y)3.19
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.29% | ||
| ROE | N/A | ||
| ROCE | 21.28% | ||
| ROIC | 17.73% | ||
| ROICexc | 18.25% | ||
| ROICexgc | N/A | ||
| OM | 15.4% | ||
| PM (TTM) | 9.75% | ||
| GM | 20.31% | ||
| FCFM | 7.25% |
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-Score6
Asset Turnover0.95
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 8.18 | ||
| Debt/EBITDA | 3.16 | ||
| Cap/Depr | 138.57% | ||
| Cap/Sales | 3.06% | ||
| Interest Coverage | 6.13 | ||
| Cash Conversion | 58.56% | ||
| Profit Quality | 74.35% | ||
| Current Ratio | 0.45 | ||
| Quick Ratio | 0.45 | ||
| Altman-Z | 3.67 |
F-Score6
WACC8.16%
ROIC/WACC2.17
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)-5.36%
EPS 3Y43.21%
EPS 5Y9.22%
EPS Q2Q%8.92%
EPS Next Y8.54%
EPS Next 2Y11.05%
EPS Next 3Y11.77%
EPS Next 5Y14.55%
Revenue 1Y (TTM)5.45%
Revenue growth 3Y21.9%
Revenue growth 5Y3.66%
Sales Q2Q%4.79%
Revenue Next Year4.61%
Revenue Next 2Y5.25%
Revenue Next 3Y5.38%
Revenue Next 5Y3.97%
EBIT growth 1Y1.37%
EBIT growth 3Y29.79%
EBIT growth 5Y14.68%
EBIT Next Year28.89%
EBIT Next 3Y13.71%
EBIT Next 5Y12.95%
FCF growth 1Y-25.59%
FCF growth 3Y26.22%
FCF growth 5Y14.14%
OCF growth 1Y-8.24%
OCF growth 3Y32.68%
OCF growth 5Y10.28%