NasdaqGS:MAR

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Average dividend payer with moderate growth potential.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.2%

MAR

-0.7%

US Hospitality

-0.2%

US Market


1 Year Return

13.5%

MAR

8.9%

US Hospitality

16.1%

US Market

Return vs Industry: MAR underperformed the US Hospitality industry which returned 8.9% over the past year.

Return vs Market: MAR underperformed the US Market which returned 16.1% over the past year.


Shareholder returns

MARIndustryMarket
7 Day-1.2%-0.7%-0.2%
30 Day9.0%2.7%3.7%
90 Day6.3%5.6%8.5%
1 Year15.1%13.5%11.7%8.9%18.7%16.1%
3 Year77.1%70.3%29.5%20.3%46.9%37.4%
5 Year83.6%71.6%33.1%18.6%61.8%44.0%

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?

34.11x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MAR ($132.98) is trading above our estimate of fair value ($123.34)

Significantly Below Fair Value: MAR is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: MAR is poor value based on its PE Ratio (34.1x) compared to the Hospitality industry average (22x).

PE vs Market: MAR is poor value based on its PE Ratio (34.1x) compared to the US market (18x).


Price to Earnings Growth Ratio

PEG Ratio: MAR is poor value based on its PEG Ratio (2.7x)


Price to Book Ratio

PB vs Industry: MAR is overvalued based on its PB Ratio (51.9x) compared to the US Hospitality industry average (2.2x).


Next Steps

Future Growth

How is Marriott International forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?

12.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MAR's forecast earnings growth (12.7% per year) is above the savings rate (2.7%).

Earnings vs Market: MAR's earnings (12.7% per year) are forecast to grow slower than the US market (14.3% per year).

High Growth Earnings: MAR's earnings are forecast to grow, but not significantly.

Revenue vs Market: MAR's revenue (7.9% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: MAR's revenue (7.9% 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 (241.1%).


Next Steps

Past Performance

How has Marriott International performed over the past 5 years?

19.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MAR has high quality earnings.

Growing Profit Margin: MAR's current net profit margins (24.8%) are lower than last year (32.8%).


Past Earnings Growth Analysis

Earnings Trend: MAR's earnings have grown by 19.4% 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 (-23.1%) over the past year, making it difficult to compare to the Hospitality industry average (-15.7%).


Return on Equity

High ROE: Whilst MAR's Return on Equity (156.44%) is outstanding, this metric is skewed due to their high level of debt.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Marriott International's financial position?


Financial Position Analysis

Short Term Liabilities: MAR's short term assets ($2.9B) do not cover its short term liabilities ($5.7B)

Long Term Liabilities: MAR's short term assets ($2.9B) do not cover its long term liabilities (18.2B)


Debt to Equity History and Analysis

Debt Level: MAR's debt to equity ratio (1267.3%) is considered high.

Reducing Debt: MAR had negative shareholder equity 5 years ago, but is now positive and has therefore improved.

Debt Coverage: MAR's debt is not well covered by operating cash flow (16.2%).

Interest Coverage: MAR's interest payments on its debt are well covered by EBIT (6.1x coverage).


Balance Sheet

Inventory Level: MAR has a low level of unsold assets or inventory.

Debt Coverage by Assets: MAR's 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?

1.44%

Current Dividend Yield


Dividend Yield vs Market

company1.4%marketbottom25%1.4%markettop25%3.7%industryaverage3.1%forecastin3Years1.5%

Current dividend yield vs market & industry

Notable Dividend: MAR's dividend (1.44%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: MAR's dividend (1.44%) is low compared to the top 25% of dividend payers in the US market (3.69%).


Stability and Growth of Payments

Stable Dividend: MAR's dividend payments have been volatile in the past 10 years.

Growing Dividend: MAR's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (45.7%), MAR's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MAR's dividends in 3 years are forecast to be well covered by earnings (28.3% payout ratio).


Next Steps

Management

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

7.7yrs

Average management tenure


CEO

Arne Sorenson (60yo)

7.7yrs

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

Compensation vs Market: Arne's total compensation ($USD12.93M) is about average for companies of similar size in the US market ($USD11.04M).

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


Management Age and Tenure

7.7yrs

Average Tenure

58yo

Average Age

Experienced Management: MAR's management team is seasoned and experienced (7.7 years average tenure).


Board Age and Tenure

11.5yrs

Average Tenure

64yo

Average Age

Experienced Board: MAR's board of directors are seasoned and experienced ( 11.5 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$147,63118 Nov 19
Alex Kyriakidis
EntityIndividual
Shares1,100
Max PriceUS$134.21
SellUS$650,15613 Sep 19
George Muñoz
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares4,866
Max PriceUS$133.61
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
Independent 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

Ownership Breakdown

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


Management Team

  • Arne Sorenson (60yo)

    President

    • Tenure: 7.7yrs
    • Compensation: US$12.93m
  • Bill Marriott (87yo)

    Executive Chairman of the Board

    • Tenure: 34.8yrs
    • Compensation: US$3.39m
  • Dave Grissen (62yo)

    Group President

    • Tenure: 5.8yrs
    • Compensation: US$4.82m
  • Laura Paugh

    Senior Vice President of Investor Relations

    • Tenure: 0yrs
  • Stephanie Linnartz (50yo)

    • Tenure: 11.3yrs
    • Compensation: US$4.94m
  • Tony Capuano (53yo)

    Executive VP & Global Chief Development Officer

    • Tenure: 10.6yrs
    • Compensation: US$5.75m
  • Bruce Hoffmeister

    Global Chief Information Officer

    • Tenure: 8.6yrs
  • Leeny Oberg (58yo)

    Executive VP & CFO

    • Tenure: 3.8yrs
    • Compensation: US$4.71m
  • Bao Giang Bauduin (43yo)

    Controller & Chief Accounting Officer

    • Tenure: 5.4yrs
  • Matt Muserlian

    Director Of Operations

    • Tenure: 0yrs

Board Members

  • Arne Sorenson (60yo)

    President

    • Tenure: 7.7yrs
    • Compensation: US$12.93m
  • Larry Kellner (60yo)

    Lead Director

    • Tenure: 0yrs
    • Compensation: US$280.03k
  • Steve Reinemund (71yo)

    Independent Director

    • Tenure: 12.6yrs
    • Compensation: US$264.61k
  • Bill Marriott (87yo)

    Executive Chairman of the Board

    • Tenure: 34.8yrs
    • Compensation: US$3.39m
  • Debra Lee (64yo)

    Independent Director

    • Tenure: 15.4yrs
    • Compensation: US$264.07k
  • Mary Bush (71yo)

    Independent Director

    • Tenure: 11.5yrs
    • Compensation: US$260.03k
  • George Muñoz (67yo)

    Independent Director

    • Tenure: 17.3yrs
    • Compensation: US$285.55k
  • Arthur Gillis

    Non-Executive Chairman of Africa Development

    • Tenure: 5.6yrs
  • Fritz Henderson (60yo)

    Independent Director

    • Tenure: 6.5yrs
    • Compensation: US$270.03k
  • Debbie Harrison (62yo)

    Global Officer of Marriott Culture & Business Councils and Director

    • Tenure: 5.4yrs

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$43.388b
  • Shares outstanding: 326.94m
  • 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 Analysis2019/11/21 23:38
End of Day Share Price2019/11/21 00:00
Earnings2019/09/30
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.