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
Trailing Returns
Performance at a Glance
| Metric | Current stock: MAR | Industry group median |
|---|---|---|
| 1-Year Return | 54.28% | 1.05% |
Risk
Drawdown
Risk at a Glance
| Metric | Current stock: MAR | Industry group median |
|---|---|---|
| 1-Year Volatility | 26.34% | 44.02% |
| Beta | 1.09 | 1.03 |
Company Profile
| Profile Item | MAR |
|---|---|
| Name | Marriott International Inc. - Class A |
| Country/Region | United States |
| GICS Sector | Consumer Discretionary |
| GICS Industry Group | Consumer Services |
| GICS Industry | Hotels, Restaurants & Leisure |
| GICS Sub-Industry | Hotels, Resorts & Cruise Lines |
| Market Capitalization | 106.15 billion USD |
| Currency | USD |
| Exchange | Nasdaq |
| Listing Date | March 23, 1998 |
| Security Type | Common 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
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
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
Valuation at a Glance
| Metric | Current stock: MAR | Industry group median |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 42.19 | 22.08 |
| Price-to-Sales Ratio (TTM) | 14.78 | 1.68 |
| Price-to-Book Ratio (MRQ) | -26.04 | 2.54 |
| Free Cash Flow Yield | 1.69% | 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
- --
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%
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%
Profitability at a Glance
| Metric | Current stock: MAR | Industry 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
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
- --
Financial Strength at a Glance
| Metric | Current stock: MAR | Industry group median |
|---|---|---|
| Current Ratio (MRQ) | 0.46 | 0.99 |
| Debt-to-Equity Ratio (MRQ) | -- | 1.27 |
| Net Debt / EBITDA | 3.58 | 3.48 |
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%
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%
Dividends at a Glance
| Metric | Current stock: MAR | Industry group median |
|---|---|---|
| Dividend Yield (TTM) | 0.73% | 0.00% |
| Dividend Payout Ratio (TTM) | 28.06% | 0.00% |