MARRIOTT INTERNATIONAL -CL A (MAR) Stock Fundamental Analysis
USA - NASDAQ:MAR - US5719032022 - Common Stock
267.97 USD
+4.71 (+1.79%)
267.97 USD
0 (0%)
MAR gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 135 industry peers in the Hotels, Restaurants & Leisure industry. MAR has a medium profitability rating, but doesn't score so well on its financial health evaluation. MAR is quite expensive at the moment. It does show a decent growth rate.
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.
MAR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 9.02%, MAR belongs to the best of the industry, outperforming 82.96% of the companies in the same industry.
MAR's Return On Invested Capital of 17.19% is amongst the best of the industry. MAR outperforms 86.67% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MAR is in line with the industry average of 15.69%.
| 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 has a better Profit Margin (9.60%) than 74.07% of its industry peers.
MAR's Profit Margin has improved in the last couple of years.
MAR has a better Operating Margin (15.38%) than 68.89% of its industry peers.
In the last couple of years the Operating Margin of MAR has grown nicely.
MAR's Gross Margin of 20.24% is on the low side compared to the rest of the industry. MAR is outperformed by 85.19% 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 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.
Compared to 1 year ago, MAR has a worse debt to assets ratio.
2.2 Solvency
MAR has an Altman-Z score of 3.55. This indicates that MAR is financially healthy and has little risk of bankruptcy at the moment.
MAR has a better Altman-Z score (3.55) than 78.52% 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.
With a Debt to FCF ratio value of 9.31, MAR perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 9.31 | ||
| Altman-Z | 3.55 |
ROIC/WACC2.17
WACC7.93%
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 has a worse Current ratio (0.49) than 76.30% of its industry peers.
A Quick Ratio of 0.49 indicates that MAR may have some problems paying its short term obligations.
MAR's Quick ratio of 0.49 is on the low side compared to the rest of the industry. MAR is outperformed by 72.59% of its industry peers.
| 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%.
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 5.12% in the last year.
MAR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.66% yearly.
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.
MAR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.96% yearly.
EPS Next Y8.75%
EPS Next 2Y10.7%
EPS Next 3Y11.6%
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 27.68, which means the current valuation is very expensive for MAR.
The rest of the industry has a similar Price/Earnings ratio as MAR.
The average S&P500 Price/Earnings ratio is at 27.34. MAR is around the same levels.
The Price/Forward Earnings ratio is 23.41, which indicates a rather expensive current valuation of MAR.
MAR's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of MAR to the average of the S&P500 Index (22.86), we can say MAR is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.68 | ||
| Fwd PE | 23.41 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MAR is valued a bit more expensive than the industry average as 68.15% of the companies are valued more cheaply.
The rest of the industry has a similar Price/Free Cash Flow ratio as MAR.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 43.25 | ||
| EV/EBITDA | 18.88 |
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)3.16
PEG (5Y)3
EPS Next 2Y10.7%
EPS Next 3Y11.6%
5. Dividend
5.1 Amount
MAR has a Yearly Dividend Yield of 1.01%.
MAR's Dividend Yield is a higher than the industry average which is at 6.98.
With a Dividend Yield of 1.01, MAR pays less dividend than the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.01% |
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.
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 2Y10.7%
EPS Next 3Y11.6%
267.97
+4.71 (+1.79%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners64.32%
Inst Owner Change0.03%
Ins Owners1.35%
Ins Owner Change-0.09%
Market Cap72.74B
Analysts70.97
Price Target289.32 (7.97%)
Short Float %3.24%
Short Ratio5.28
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.01% |
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)0.39%
PT rev (3m)2.8%
EPS NQ rev (1m)0.3%
EPS NQ rev (3m)-3.81%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)-0.13%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.81%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.68 | ||
| Fwd PE | 23.41 | ||
| P/S | 2.83 | ||
| P/FCF | 43.25 | ||
| P/OCF | 29.24 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.88 |
EPS(TTM)9.68
EY3.61%
EPS(NY)11.44
Fwd EY4.27%
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 | 3.55 |
F-Score5
WACC7.93%
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)-6.11%
EPS 3Y43.21%
EPS 5Y9.22%
EPS Q2Q%6%
EPS Next Y8.75%
EPS Next 2Y10.7%
EPS Next 3Y11.6%
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 Year29.93%
EBIT Next 3Y14.06%
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%