NasdaqGS:MAR

Stock Analysis Report

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Executive Summary

Marriott International, Inc. operates, franchises, and licenses hotel, residential, and timeshare properties worldwide.


Snowflake Analysis

High growth potential and slightly overvalued.


Similar Companies

Share Price & News

How has Marriott International's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MAR's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-2.8%

MAR

4.9%

US Hospitality

2.7%

US Market


1 Year Return

-29.1%

MAR

-23.6%

US Hospitality

9.1%

US Market

Return vs Industry: MAR underperformed the US Hospitality industry which returned -22.9% over the past year.

Return vs Market: MAR underperformed the US Market which returned 8.4% over the past year.


Shareholder returns

MARIndustryMarket
7 Day-2.8%4.9%2.7%
30 Day-2.7%6.1%4.5%
90 Day-28.6%-18.5%2.3%
1 Year-28.3%-29.1%-21.8%-23.6%11.5%9.1%
3 Year-16.6%-19.6%-19.7%-25.0%30.6%22.0%
5 Year20.6%12.9%2.4%-8.8%57.2%39.5%

Price Volatility Vs. Market

How volatile is Marriott International's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Marriott International undervalued compared to its fair value and its price relative to the market?

5.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MAR ($88.5) is trading below our estimate of fair value ($93.3)

Significantly Below Fair Value: MAR is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: MAR is poor value based on its PE Ratio (31.4x) compared to the Hospitality industry average (17.1x).

PE vs Market: MAR is poor value based on its PE Ratio (31.4x) compared to the US market (16x).


Price to Earnings Growth Ratio

PEG Ratio: MAR is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: MAR has negative assets, so we can't compare its PB Ratio to the US Hospitality industry average.


Next Steps

Future Growth

How is Marriott International forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?

36.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MAR's forecast earnings growth (36.3% per year) is above the savings rate (2.2%).

Earnings vs Market: MAR's earnings (36.3% per year) are forecast to grow faster than the US market (21.7% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: MAR's revenue (19.3% per year) is forecast to grow faster than the US market (8.8% per year).

High Growth Revenue: MAR's revenue (19.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MAR's Return on Equity is forecast to be very high in 3 years time (119.9%).


Next Steps

Past Performance

How has Marriott International performed over the past 5 years?

13.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MAR has high quality earnings.

Growing Profit Margin: MAR's current net profit margins (18.6%) are lower than last year (35.5%).


Past Earnings Growth Analysis

Earnings Trend: MAR's earnings have grown by 13.7% per year over the past 5 years.

Accelerating Growth: MAR's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: MAR had negative earnings growth (-50%) over the past year, making it difficult to compare to the Hospitality industry average (-12.2%).


Return on Equity

High ROE: MAR's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Next Steps

Financial Health

How is Marriott International's financial position?


Financial Position Analysis

Short Term Liabilities: MAR has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: MAR has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: MAR has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: MAR's has negative shareholder equity, so we do not need to check if its debt has reduced over time.

Debt Coverage: MAR's debt is not well covered by operating cash flow (17%).

Interest Coverage: MAR's interest payments on its debt are well covered by EBIT (4.8x coverage).


Balance Sheet


Next Steps

Dividend

What is Marriott International's current dividend yield, its reliability and sustainability?

0.95%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate MAR's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate MAR's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if MAR's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if MAR's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: MAR is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of MAR's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.5yrs

Average management tenure


CEO

Arne Sorenson (60yo)

8.17yrs

Tenure

US$13,435,887

Compensation

Mr. Arne M. Sorenson has been the Chief Executive Officer of Marriott International, Inc. since March 31, 2012 and its President since May 1, 2009 with responsibility for the performance and growth of all  ...


CEO Compensation Analysis

Compensation vs Market: Arne's total compensation ($USD13.44M) is about average for companies of similar size in the US market ($USD11.71M).

Compensation vs Earnings: Arne's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Arne Sorenson
President8.17yrsUS$13.44m0.22% $62.7m
Kathleen Oberg
Executive VP & CFO4.33yrsUS$4.59m0.014% $3.9m
David Grissen
Group President of the Americasno dataUS$4.90m0.015% $4.4m
Stephanie Linnartz
Group President of Consumer Operations11.83yrsUS$4.87m0.028% $8.0m
Anthony Capuano
Group President of Global Development0.33yrUS$5.88m0.013% $3.6m
John Marriott
Executive Chairman of the Board35.33yrsUS$3.39m2.88% $827.8m
Matthew Muserlian
Director Of Operationsno datano datano data
Jackie McConagha
Senior VP of Investor Relationsno datano datano data
Rena Reiss
Executive VP & General Counsel2.42yrsno data0.0037% $1.1m
Tricia Primrose
Executive VP and Global Chief Communications & Public Affairs Officer4.67yrsno datano data

4.5yrs

Average Tenure

59yo

Average Age

Experienced Management: MAR's management team is considered experienced (4.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Arne Sorenson
President8.17yrsUS$13.44m0.22% $62.7m
John Marriott
Executive Chairman of the Board35.33yrsUS$3.39m2.88% $827.8m
Lawrence Kellner
Independent Lead Directorno dataUS$303.39k0.00062% $177.9k
Bruce Duncan
Independent Director3.67yrsUS$273.72k0.029% $8.4m
Debra Lee
Independent Director15.92yrsUS$282.96k0.00020% $57.4k
Susan Schwab
Independent Director5yrsUS$253.39k0.0017% $490.7k
George Muñoz
Independent Director17.75yrsUS$283.78k0.00024% $68.9k
Arthur Gillis
Non-Executive Chairman of Africa Development6.08yrsno datano data
Frederick Henderson
Independent Director7yrsUS$276.72k0.00051% $146.4k
Deborah Harrison
Director5.92yrsUS$221.72k0.26% $74.7m

7.0yrs

Average Tenure

64yo

Average Age

Experienced Board: MAR's board of directors are considered experienced (7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: MAR insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Marriott International, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Marriott International, Inc.
  • Ticker: MAR
  • Exchange: NasdaqGS
  • Founded: 1927
  • Industry: Hotels, Resorts and Cruise Lines
  • Sector: Consumer Services
  • Market Cap: US$28.697b
  • Shares outstanding: 324.26m
  • Website: https://www.marriott.com

Number of Employees


Location

  • Marriott International, Inc.
  • 10400 Fernwood Road
  • Bethesda
  • Maryland
  • 20817
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MARNasdaqGS (Nasdaq Global Select)YesClass A Common StockUSUSDMar 1998
MAQDB (Deutsche Boerse AG)YesClass A Common StockDEEURMar 1998
MARWBAG (Wiener Boerse AG)YesClass A Common StockATEURMar 1998
0JYWLSE (London Stock Exchange)YesClass A Common StockGBUSDMar 1998
MAQETLX (Eurotlx)YesClass A Common StockITEURMar 1998
M1TT34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 4 REPR 1 COMBRBRLJan 2020

Biography

Marriott International, Inc. operates, franchises, and licenses hotel, residential, and timeshare properties worldwide. The company operates through North American Full-Service, North American Limited-Service, and Asia Pacific segments. It operates its properties under the JW Marriott, The Ritz-Carlton, St. Regis, W Hotels, The Luxury Collection, EDITION, Bulgari, Marriott Hotels, Sheraton, Delta Hotels, Marriott Executive Apartments, Marriott Vacation Club, Westin, Renaissance, Le Méridien, Autograph Collection, Gaylord Hotels, Tribute Portfolio, Design Hotels, Courtyard, Residence Inn, Fairfield by Marriott, SpringHill Suites, Four Points, TownePlace Suites, Protea Hotels, Aloft, AC Hotels by Marriott, Element, and Moxy names. As of May 11, 2020, it operated approximately 7,400 properties under 30 hotel brands in 134 countries and territories. Marriott International, Inc. was founded in 1927 and is headquartered in Bethesda, Maryland. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/30 02:50
End of Day Share Price2020/05/29 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.