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 132 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
MAR had positive earnings in the past year.
In the past year MAR had a positive cash flow from operations.
Of the past 5 years MAR 4 years were profitable.
In the past 5 years MAR always reported a positive cash flow from operatings.
1.2 Ratios
MAR's Return On Assets of 9.29% is amongst the best of the industry. MAR outperforms 83.33% of its industry peers.
MAR has a better Return On Invested Capital (17.73%) than 88.64% of its industry peers.
MAR had an Average Return On Invested Capital over the past 3 years of 17.69%. This is above the industry average of 13.91%.
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 74.24% of its industry peers.
MAR's Profit Margin has improved in the last couple of years.
The Operating Margin of MAR (15.40%) is better than 68.94% of its industry peers.
In the last couple of years the Operating Margin of MAR has grown nicely.
MAR's Gross Margin of 20.31% is on the low side compared to the rest of the industry. MAR is outperformed by 85.61% 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
MAR has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it 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 3.68. This indicates that MAR is financially healthy and has little risk of bankruptcy at the moment.
MAR has a Altman-Z score of 3.68. This is in the better half of the industry: MAR outperforms 79.55% of its industry peers.
The Debt to FCF ratio of MAR is 8.18, which is on the high side as it means it would take MAR, 8.18 years of fcf income to pay off all of its debts.
MAR has a better Debt to FCF ratio (8.18) than 68.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 8.18 | ||
| Altman-Z | 3.68 |
ROIC/WACC1.96
WACC9.07%
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 has a worse Current ratio (0.45) than 79.55% of its industry peers.
A Quick Ratio of 0.45 indicates that MAR may have some problems paying its short term obligations.
MAR has a Quick ratio of 0.45. This is in the lower half of the industry: MAR underperforms 74.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.45 | ||
| Quick Ratio | 0.45 |
3. Growth
3.1 Past
The earnings per share for MAR have decreased by -5.36% in the last year.
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.
MAR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.97% yearly.
EPS Next Y8.89%
EPS Next 2Y11.11%
EPS Next 3Y11.82%
EPS Next 5Y14.55%
Revenue Next Year4.6%
Revenue Next 2Y5.27%
Revenue Next 3Y5.42%
Revenue Next 5Y3.97%
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 29.67, 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 27.41. MAR is around the same levels.
With a Price/Forward Earnings ratio of 24.52, MAR is valued on the expensive side.
MAR's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.19, MAR is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.67 | ||
| Fwd PE | 24.52 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MAR is valued a bit more expensive than the industry average as 66.67% of the companies are valued more cheaply.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MAR is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.06 | ||
| EV/EBITDA | 20.52 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of MAR may justify a higher PE ratio.
PEG (NY)3.34
PEG (5Y)3.22
EPS Next 2Y11.11%
EPS Next 3Y11.82%
5. Dividend
5.1 Amount
With a yearly dividend of 0.95%, MAR is not a good candidate for dividend investing.
MAR's Dividend Yield is a higher than the industry average which is at 3.47.
Compared to an average S&P500 Dividend Yield of 2.35, MAR's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.95% |
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
28.47% 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.
DP28.47%
EPS Next 2Y11.11%
EPS Next 3Y11.82%
NASDAQ:MAR (7/14/2025, 11:48:34 AM)
282.72
+1.07 (+0.38%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners62.96%
Inst Owner Change0.01%
Ins Owners1.34%
Ins Owner Change0.21%
Market Cap77.44B
Analysts70.63
Price Target281.44 (-0.45%)
Short Float %2.96%
Short Ratio4.05
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.95% |
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)0.25%
PT rev (3m)-5.24%
EPS NQ rev (1m)-0.01%
EPS NQ rev (3m)-4.42%
EPS NY rev (1m)0.8%
EPS NY rev (3m)-1.03%
Revenue NQ rev (1m)0.01%
Revenue NQ rev (3m)-1.42%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-0.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.67 | ||
| Fwd PE | 24.52 | ||
| P/S | 3.05 | ||
| P/FCF | 42.06 | ||
| P/OCF | 29.59 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.52 |
EPS(TTM)9.53
EY3.37%
EPS(NY)11.53
Fwd EY4.08%
FCF(TTM)6.72
FCFY2.38%
OCF(TTM)9.55
OCFY3.38%
SpS92.68
BVpS-11.57
TBVpS-78.73
PEG (NY)3.34
PEG (5Y)3.22
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 | 3.68 |
F-Score6
WACC9.07%
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)-5.36%
EPS 3Y43.21%
EPS 5Y9.22%
EPS Q2Q%8.92%
EPS Next Y8.89%
EPS Next 2Y11.11%
EPS Next 3Y11.82%
EPS Next 5Y14.55%
Revenue 1Y (TTM)5.45%
Revenue growth 3Y21.9%
Revenue growth 5Y3.66%
Sales Q2Q%4.79%
Revenue Next Year4.6%
Revenue Next 2Y5.27%
Revenue Next 3Y5.42%
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%