Marriott International logged a -0.6% change during today's evening session, and is now trading at a price of $203.51 per share.
Marriott International returned gains of 29.0% last year, with its stock price reaching a high of $206.53 and a low of $135.9. Over the same period, the stock outperformed the S&P 500 index by 19.0%. More recently, the company's 50-day average price was $182.62. Marriott International, Inc. operates, franchises, and licenses hotel, residential, timeshare, and other lodging properties worldwide. Based in Bethesda, MD, the large-cap Consumer Discretionary company has 377,000 full time employees. Marriott International has not offered a dividend during the last year.
The Company May Be Profitable, but Its Balance Sheet Is Highly Leveraged:
| 2020-02-27 | 2021-02-18 | 2022-02-15 | 2023-02-14 | |
|---|---|---|---|---|
| Revenue (MM) | $20,972 | $2,119 | $3,415 | $5,356 |
| Operating Margins | 9.2% | 16.6% | 51.5% | 64.9% |
| Net Margins | 6.07% | -12.6% | 32.18% | 44.03% |
| Net Income (MM) | $1,273 | -$267 | $1,099 | $2,358 |
| Net Interest Expense (MM) | -$368 | -$418 | -$392 | -$377 |
| Depreciation & Amort. (MM) | -$403 | -$478 | -$295 | -$282 |
| Earnings Per Share | $3.79 | -$0.82 | $3.34 | $8.52 |
| EPS Growth | n/a | -121.64% | 507.32% | 155.09% |
| Diluted Shares (MM) | 336 | 326 | 329 | 303 |
| Free Cash Flow (MM) | $1,943 | $1,514 | $1,348 | $2,694 |
| Capital Expenditures (MM) | -$258 | $125 | -$171 | -$331 |
| Net Current Assets (MM) | -$21,221 | -$21,446 | -$20,513 | -$20,934 |
| Current Ratio | 0.47 | 0.49 | 0.57 | 0.45 |
| Long Term Debt (MM) | $9,963 | $9,203 | $9,333 | $9,380 |
| Net Debt / EBITDA | 6.24 | 11.47 | 5.13 | 4.23 |
Marriott International has exceptional EPS growth, decent operating margins with a positive growth rate, and consistent free cash flow. However, the firm has a highly leveraged balance sheet. Finally, we note that Marriott International has declining revenues and increasing reinvestment in the business.
Marriott International's Valuation Is in Line With Its Sector Averages:
Marriott International has a trailing twelve month P/E ratio of 21.4, compared to an average of 22.33 for the Consumer Discretionary sector. Based on its EPS guidance of $9.33, the company has a forward P/E ratio of 19.6. According to the 19.7% compound average growth rate of Marriott International's historical and projected earnings per share, the company's PEG ratio is 1.09. Taking the weighted average of the company's EPS CAGR and the broader market's 5-year projected EPS growth rate, we obtain a normalized growth rate of 10.2%. On this basis, the company's PEG ratio is 2.11. This suggests that these shares are overvalued. Furthermore, Marriott International is likely overvalued compared to the book value of its equity, since its P/B ratio of 111.27 is higher than the sector average of 3.12. The company's shares are currently trading 1547.0% above their Graham number.
Marriott International Has an Average Rating of Hold:
The 17 analysts following Marriott International have set target prices ranging from $174.0 to $220.0 per share, for an average of $196.99 with a hold rating. As of April 2023, the company is trading -7.3% away from its average target price, indicating that there is an analyst consensus of little upside potential.
Marriott International has an average amount of shares sold short because 2.5% of the company's shares are sold short. Institutions own 61.5% of the company's shares, and the insider ownership rate stands at 19.51%, suggesting a large amount of insider shareholders. The largest shareholder is Vanguard Group Inc, whose 8% stake in the company is worth $4,644,798,352.
