Marriott International, Inc. Fundamental Analysis
Marriott International, Inc. (MAR) shows weak financial fundamentals with a PE ratio of 39.10, profit margin of 9.72%, and ROE of -74.11%. The company generates $26.1B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 16.3/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze MAR's fundamental strength across five key dimensions:
Efficiency Score
WeakMAR struggles to generate sufficient returns from assets.
Valuation Score
WeakMAR trades at a premium to fair value.
Growth Score
ModerateMAR shows steady but slowing expansion.
Financial Health Score
ModerateMAR shows balanced financial health with some risks.
Profitability Score
WeakMAR struggles to sustain strong margins.
Key Financial Metrics
Is MAR Expensive or Cheap?
P/E Ratio
MAR trades at 39.10 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, MAR's PEG of 4.71 indicates potential overvaluation.
Price to Book
The market values Marriott International, Inc. at -24.45 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 17.08 times EBITDA. This signals the market has high growth expectations.
How Well Does MAR Make Money?
Net Profit Margin
For every $100 in sales, Marriott International, Inc. keeps $9.72 as profit after all expenses.
Operating Margin
Core operations generate 16.02 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-74.11 in profit for every $100 of shareholder equity.
ROA
Marriott International, Inc. generates $9.28 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Marriott International, Inc. produces operating cash flow of $3.36B, showing steady but balanced cash generation.
Free Cash Flow
Marriott International, Inc. generates strong free cash flow of $3.06B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $11.60 in free cash annually.
FCF Yield
MAR converts 3.17% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
39.10
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
4.71
vs 25 benchmark
P/B Ratio
Price to book value ratio
-24.45
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.70
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-4.25
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.46
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.74
vs 25 benchmark
ROA
Return on assets percentage
0.09
vs 25 benchmark
ROCE
Return on capital employed
0.22
vs 25 benchmark
How MAR Stacks Against Its Sector Peers
| Metric | MAR Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 39.10 | 24.95 | Worse (Expensive) |
| ROE | -74.11% | 864.00% | Weak |
| Net Margin | 9.72% | -2733.00% (disorted) | Weak |
| Debt/Equity | -4.25 | 0.60 | Strong (Low Leverage) |
| Current Ratio | 0.46 | 2.43 | Weak Liquidity |
| ROA | 9.28% | 287.00% | Weak |
MAR outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Marriott International, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Cyclical, Growth, Discretionary
EPS CAGR
N/A
Industry Style: Cyclical, Growth, Discretionary
FCF CAGR
N/A
Industry Style: Cyclical, Growth, Discretionary