NasdaqGS:MAR

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Reasonable growth potential average dividend payer.


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


Market Performance


7 Day Return

-2.9%

NasdaqGS:MAR

-0.7%

US Hospitality

-1.6%

US Market


1 Year Return

1.6%

NasdaqGS:MAR

-7.0%

US Hospitality

-3.0%

US Market

MAR outperformed the Hospitality industry which returned -7% over the past year.

MAR outperformed the Market in United States of America which returned -3% over the past year.


Share holder returns

MARIndustryMarket
7 Day-2.9%-0.7%-1.6%
30 Day-11.1%-7.6%-5.7%
90 Day0.08%-0.7%0.2%
1 Year3.1%1.6%-4.8%-7.0%-0.8%-3.0%
3 Year79.5%71.8%42.8%33.8%38.1%29.1%
5 Year92.7%80.3%31.5%17.1%50.8%34.1%

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 based on future cash flows and its price relative to the stock market?

15%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Marriott International's share price is below the future cash flow value, but not at a moderate discount (< 20%).

Marriott International's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Marriott International is overvalued based on earnings compared to the US Hospitality industry average.

Marriott International is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Marriott International is poor value based on expected growth next year.


Price Based on Value of Assets

Marriott International is overvalued based on assets compared to the US Hospitality industry average.


Next Steps

Future Growth

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

16.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Marriott International's revenue is expected to grow by 11.4% yearly, however this is not considered high growth (20% yearly).

Marriott International's earnings are expected to grow by 16.1% yearly, however this is not considered high growth (20% yearly).

Marriott International's revenue growth is expected to exceed the United States of America market average.

Marriott International's earnings growth is expected to exceed the United States of America market average.

Marriott International's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Marriott International is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).


Next Steps

Past Performance

How has Marriott International performed over the past 5 years?

21.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Marriott International has delivered over 20% year on year earnings growth in the past 5 years.

Marriott International's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Marriott International's 1-year earnings growth is negative, it can't be compared to the US Hospitality industry average.


Return on Equity

Whilst Marriott International made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%), this is metric is skewed due to its high level of debt.


Return on Assets

Marriott International used its assets more efficiently than the US Hospitality industry average last year based on Return on Assets.


Return on Capital Employed

Marriott International's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Marriott International's financial position?


Financial Position Analysis

Marriott International's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Marriott International's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Marriott International's level of debt (826.9%) compared to net worth is high (greater than 40%).

Marriott International had negative shareholder equity 5 years ago, it is now positive therefore their debt level has improved.

Debt is not well covered by operating cash flow (19.2%, less than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 6.2x coverage).


Balance Sheet

Low level of unsold assets.

Debt is not covered by short term assets, assets are 0.3x debt.


Next Steps

Dividend

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

1.55%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Marriott International's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.52%).

Marriott International's dividend is below the markets top 25% of dividend payers in United States of America (3.93%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2.5x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (3.7x coverage).


Next Steps

Management

What is the CEO of Marriott International's salary, the management and board of directors tenure and is there insider trading?

7.4yrs

Average management tenure


CEO

Arne Sorenson (60yo)

7.4yrs

Tenure

US$12,933,992

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

Arne's remuneration is about average for companies of similar size in United States of America.

Arne's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

7.4yrs

Average Tenure

58yo

Average Age

The average tenure for the Marriott International management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

11.3yrs

Average Tenure

64yo

Average Age

The average tenure for the Marriott International board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

Marriott International individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$3,008,85618 Jul 19
John Marriott
EntityIndividual
Shares22,750
Max PriceUS$137.00
SellUS$1,113,20801 Jul 19
Alex Kyriakidis
EntityIndividual
Shares7,964
Max PriceUS$139.78
SellUS$909,42325 Jun 19
Alex Kyriakidis
EntityIndividual
Shares6,642
Max PriceUS$136.92
SellUS$1,872,92921 Jun 19
David Grissen
EntityIndividual
Role
Unit President
Group President
Shares13,686
Max PriceUS$136.85
SellUS$429,18629 May 19
George Muñoz
EntityIndividual
Role
Member of the Board of Directors
Director
Shares3,428
Max PriceUS$125.20
SellUS$1,416,69016 May 19
Alex Kyriakidis
EntityIndividual
Shares11,000
Max PriceUS$128.79
BuyUS$261,66215 May 19
Margaret McCarthy
EntityIndividual
Shares2,000
Max PriceUS$130.83
SellUS$5,580,05601 Apr 19
Anthony Capuano
EntityIndividual
Role
Head of Corporate Development
Executive VP & Global Chief Development Officer
Shares44,594
Max PriceUS$125.13
SellUS$1,414,60915 Mar 19
William Brown
EntityIndividual
Shares11,640
Max PriceUS$121.53
SellUS$2,015,02012 Mar 19
Craig Smith
EntityIndividual
Shares16,743
Max PriceUS$120.35
SellUS$3,35907 Mar 19
John Marriott
EntityIndividual
Role
Chairman of the Board
Executive Chairman of the Board
Shares27
Max PriceUS$124.42
SellUS$1,046,07014 Nov 18
Eric Hippeau
EntityIndividual
Shares9,000
Max PriceUS$116.23

Ownership Breakdown


Management Team

  • Arne Sorenson (60yo)

    President

    • Tenure: 7.4yrs
    • Compensation: US$12.93m
  • Bill Marriott (87yo)

    Executive Chairman of the Board

    • Tenure: 34.6yrs
    • Compensation: US$3.39m
  • Dave Grissen (62yo)

    Group President

    • Tenure: 5.5yrs
    • Compensation: US$4.82m
  • Laura Paugh

    Senior Vice President of Investor Relations

    • Tenure: 0.0yrs
  • Stephanie Linnartz (50yo)

    • Tenure: 11.1yrs
    • Compensation: US$4.94m
  • Tony Capuano (53yo)

    Executive VP & Global Chief Development Officer

    • Tenure: 10.3yrs
    • Compensation: US$5.75m
  • Bruce Hoffmeister

    Global Chief Information Officer

    • Tenure: 8.3yrs
  • Leeny Oberg (58yo)

    Executive VP & CFO

    • Tenure: 3.6yrs
    • Compensation: US$4.71m
  • Bao Giang Bauduin (43yo)

    Controller & Chief Accounting Officer

    • Tenure: 5.2yrs
  • Matt Muserlian

    Director Of Operations

    • Tenure: 0.0yrs

Board Members

  • Arne Sorenson (60yo)

    President

    • Tenure: 7.4yrs
    • Compensation: US$12.93m
  • Larry Kellner (60yo)

    Lead Director

    • Tenure: 0.0yrs
    • Compensation: US$280.03k
  • Steve Reinemund (71yo)

    Director

    • Tenure: 12.3yrs
    • Compensation: US$264.61k
  • Bill Marriott (87yo)

    Executive Chairman of the Board

    • Tenure: 34.6yrs
    • Compensation: US$3.39m
  • Debra Lee (64yo)

    Director

    • Tenure: 15.2yrs
    • Compensation: US$264.07k
  • Mary Bush (71yo)

    Director

    • Tenure: 11.3yrs
    • Compensation: US$260.03k
  • George Muñoz (67yo)

    Director

    • Tenure: 17.0yrs
    • Compensation: US$285.55k
  • Arthur Gillis

    Non-Executive Chairman of Africa Development

    • Tenure: 5.3yrs
  • Fritz Henderson (60yo)

    Director

    • Tenure: 6.3yrs
    • Compensation: US$270.03k
  • Debbie Harrison (62yo)

    Global Officer of Marriott Culture & Business Councils and Director

    • Tenure: 5.2yrs

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$41.203b
  • Shares outstanding: 329.36m
  • 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

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-Serv ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/24 23:38
End of Day Share Price2019/08/23 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.