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Marriott (MAR) Stock Analysis

Here is a fundamental analysis of Marriott (MAR), benchmarking its profitability, financial strength, dividend and valuation against its industry group peers.

Performance

Cumulative Growth

MAR
GSPC
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Marriott (MAR) vs. S&P 500 (GSPC): Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Marriott (MAR) and S&P 500 (GSPC). Returns over one year are annualized.

Performance at a Glance

Marriott (MAR) metric values compared with Consumer Services industry-group medians
MetricCurrent stock: MARIndustry group median
1-Year Return54.28%1.05%

Risk

Drawdown

MAR
GSPC
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Marriott (MAR) vs. S&P 500 (GSPC): Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Risk at a Glance

Marriott (MAR) metric values compared with Consumer Services industry-group medians
MetricCurrent stock: MARIndustry group median
1-Year Volatility26.34%44.02%
Beta1.091.03

Company Profile

Company profile fields for Marriott (MAR)
Profile ItemMAR
NameMarriott International Inc. - Class A
Country/RegionUnited States
GICS SectorConsumer Discretionary
GICS Industry GroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
GICS Sub-IndustryHotels, Resorts & Cruise Lines
Market Capitalization106.15 billion USD
CurrencyUSD
ExchangeNasdaq
Listing DateMarch 23, 1998
Security TypeCommon Stock

Valuation

Price-to-Earnings Ratio (TTM)

Marriott (MAR) trades at P/E ratio of 42.19, in the richer earnings-multiple quartile for its industry. That premium needs support from growth, durable earnings, or stronger business quality.

MAR

Consumer Services industry group

42.19

Group distribution
Max
71.36
MAR
42.19
Q3
40.24
Median
22.08
Q1
17.04
Min
3.87
Largest peers
SBUX
78.66
HLT
52.74
MAR
42.19
ABNB
32.66
MCD
23.48
BKNG
21.73
RCL
17.95
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Where Marriott (MAR) stands on P/E ratio within its Consumer Services peer group — the box is the group’s distribution and the dots its largest members.

Price-to-Sales Ratio (TTM)

Marriott (MAR) trades at 14.78 on P/S ratio, above the industry benchmark range. The stock is being valued at an unusually rich price per dollar of trailing revenue.

MAR

Consumer Services industry group

14.78

Group distribution
MAR
14.78
Max
6.59
Q3
3.16
Median
1.68
Q1
0.87
Min
0.06
Largest peers
HLT
15.53
MAR
14.78
MCD
7.37
ABNB
6.21
BKNG
4.62
RCL
4.29
SBUX
3.05
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Where Marriott (MAR) stands on P/S ratio within its Consumer Services peer group — the box is the group’s distribution and the dots its largest members.

Price-to-Book Ratio (MRQ)

Marriott (MAR) has negative P/B ratio of -26.04, which means reported book equity is negative. Price-to-book breaks down in this situation and should not be used as a valuation signal.

MAR

Consumer Services industry group

-26.04

Group distribution
Max
13.42
Q3
6.34
Median
2.54
Q1
1.07
Min
-5.84
MAR
-26.04
Largest peers
ABNB
10.31
RCL
8.05
HLT
-13.38
SBUX
-13.87
BKNG
-14.75
MAR
-26.04
MCD
-157.35
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Where Marriott (MAR) stands on P/B ratio within its Consumer Services peer group — the box is the group’s distribution and the dots its largest members.

Valuation at a Glance

Marriott (MAR) metric values compared with Consumer Services industry-group medians
MetricCurrent stock: MARIndustry group median
Price-to-Earnings Ratio (TTM)42.1922.08
Price-to-Sales Ratio (TTM)14.781.68
Price-to-Book Ratio (MRQ)-26.042.54
Free Cash Flow Yield1.69%4.08%

Profitability

Return on Equity (TTM)

No usable ROE is available for Marriott (MAR) this period, so the shareholder-equity return read is skipped.

MAR

Consumer Services industry group

--

Group distribution
Max
52.89%
Q3
29.07%
Median
12.44%
Q1
3.56%
Min
-26.11%
MAR
--
Largest peers
RCL
49.58%
ABNB
32.33%
MAR
--
MCD
--
BKNG
--
SBUX
--
HLT
--
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Marriott (MAR) doesn’t report ROE this period; the box shows the Consumer Services group’s distribution and the dots its largest members.

Net Profit Margin (TTM)

Marriott (MAR) keeps 35.97% of revenue as net profit on net margin, above the industry benchmark range. That is unusually strong bottom-line conversion, though tax effects, asset sales, or other one-off gains should be checked before treating it as durable.

MAR

Consumer Services industry group

35.97%

Group distribution
MAR
35.97%
Max
24.47%
Q3
12.35%
Median
6.13%
Q1
1.16%
Min
-15.48%
Largest peers
MAR
35.97%
MCD
31.62%
HLT
30.41%
RCL
24.36%
BKNG
22.23%
ABNB
19.90%
SBUX
3.89%
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Where Marriott (MAR) stands on net margin within its Consumer Services peer group — the box is the group’s distribution and the dots its largest members.

Operating Profit Margin (TTM)

Marriott (MAR) turns 59.01% of revenue into operating profit on operating margin, above the industry benchmark range. Core operations are retaining an unusually large share before interest and taxes, which points to pricing power or tight cost control if the margin is sustainable.

MAR

Consumer Services industry group

59.01%

Group distribution
MAR
59.01%
Max
44.25%
Q3
20.10%
Median
11.37%
Q1
3.21%
Min
-20.31%
Largest peers
MAR
59.01%
HLT
57.36%
MCD
44.25%
RCL
26.17%
BKNG
25.04%
SBUX
8.42%
ABNB
3.21%
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Where Marriott (MAR) stands on operating margin within its Consumer Services peer group — the box is the group’s distribution and the dots its largest members.

Profitability at a Glance

Marriott (MAR) metric values compared with Consumer Services industry-group medians
MetricCurrent stock: MARIndustry group median
Return on Equity (TTM)--12.44%
Return on Assets (TTM)9.77%5.05%
Net Profit Margin (TTM)35.97%6.13%
Operating Profit Margin (TTM)59.01%11.37%
Gross Profit Margin (TTM)79.04%44.16%

Financial Strength

Current Ratio (MRQ)

Marriott (MAR) has current ratio of 0.46, in the tighter-liquidity quartile for its industry. The short-term cushion is thinner than most peers carry, even if the absolute comfort level still depends on the business model.

MAR

Consumer Services industry group

0.46

Group distribution
Max
3.05
Q3
1.72
Median
0.99
Q1
0.69
MAR
0.46
Min
0.20
Largest peers
ABNB
1.44
MCD
1.14
BKNG
1.06
SBUX
0.92
HLT
0.61
MAR
0.46
RCL
0.20
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Where Marriott (MAR) stands on current ratio within its Consumer Services peer group — the box is the group’s distribution and the dots its largest members.

Debt-to-Equity Ratio (MRQ)

No usable debt-to-equity ratio is available for Marriott (MAR) this period, so the balance-sheet leverage read is skipped.

MAR

Consumer Services industry group

--

Group distribution
Max
7.23
Q3
3.20
Median
1.27
Q1
0.35
Min
0.01
MAR
--
Largest peers
RCL
2.17
ABNB
0.33
MAR
--
MCD
--
BKNG
--
SBUX
--
HLT
--
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Marriott (MAR) doesn’t report debt-to-equity ratio this period; the box shows the Consumer Services group’s distribution and the dots its largest members.

Financial Strength at a Glance

Marriott (MAR) metric values compared with Consumer Services industry-group medians
MetricCurrent stock: MARIndustry group median
Current Ratio (MRQ)0.460.99
Debt-to-Equity Ratio (MRQ)--1.27
Net Debt / EBITDA3.583.48

Dividends

Dividend Yield (TTM)

Marriott (MAR) has dividend yield of 0.73%, in the industry’s normal income range. It provides a meaningful dividend without the red flag of an unusually high headline yield.

MAR

Consumer Services industry group

0.73%

Group distribution
Max
4.72%
Q3
1.94%
MAR
0.73%
Median
0.00%
Q1
0.00%
Min
0.00%
Largest peers
MCD
2.61%
SBUX
2.41%
RCL
1.70%
BKNG
0.97%
MAR
0.73%
HLT
0.17%
ABNB
0.00%
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Where Marriott (MAR) stands on dividend yield within its Consumer Services peer group — the box is the group’s distribution and the dots its largest members.

Dividend Payout Ratio (TTM)

Marriott (MAR) has payout ratio of 28.06%, within the industry’s typical payout band. The dividend shares profits with investors while leaving earnings coverage that looks normal for the peer group.

MAR

Consumer Services industry group

28.06%

Group distribution
Max
86.96%
Q3
34.83%
MAR
28.06%
Median
0.00%
Q1
0.00%
Min
0.00%
Largest peers
SBUX
187.79%
MCD
59.85%
MAR
28.06%
RCL
25.93%
BKNG
20.73%
HLT
9.16%
ABNB
0.00%
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Where Marriott (MAR) stands on payout ratio within its Consumer Services peer group — the box is the group’s distribution and the dots its largest members.

Dividends at a Glance

Marriott (MAR) metric values compared with Consumer Services industry-group medians
MetricCurrent stock: MARIndustry group median
Dividend Yield (TTM)0.73%0.00%
Dividend Payout Ratio (TTM)28.06%0.00%