Today we're going to take a closer look at Large-Cap Consumer Discretionary company Marriott International, whose shares are currently trading at $256.66. We've been asking ourselves whether the company is under or over valued at today's prices... let's perform a brief value analysis to find out!
Marriott International's P/B and P/E Ratios Are Higher Than Average:
Marriott International, Inc. engages in operation, franchising, and licensing of hotel, residential, timeshare, and other lodging properties worldwide. The company belongs to the Consumer Discretionary sector, which has an average price to earnings (P/E) ratio of 20.93. In contrast, Marriott International has a trailing 12 month P/E ratio of 29.2 based on its earnings per share of $8.78.
Marriott International has moved 20.8% over the last year compared to 20.3% for the S&P 500 -- a difference of 0.5%. Marriott International has a 52 week high of $307.52 and a 52 week low of $204.55.
The Firm Has a Highly Leveraged Balance Sheet:
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $20,972 | $10,571 | $13,857 | $20,773 | $23,713 | $25,100 |
| Operating Margins | 9% | 1% | 13% | 17% | 16% | 15% |
| Net Margins | 6% | -3% | 8% | 11% | 13% | 9% |
| Net Income (M) | $1,273 | -$267 | $1,099 | $2,358 | $3,083 | $2,375 |
| Net Interest Expense (M) | $394 | $445 | $420 | $403 | $565 | -$502 |
| Depreciation & Amort. (M) | $403 | $478 | $295 | $282 | $277 | $128 |
| Diluted Shares (M) | 336 | 326 | 329 | 326 | 303 | 285 |
| Earnings Per Share | $3.8 | -$0.82 | $3.34 | $7.24 | $10.18 | $8.33 |
| EPS Growth | n/a | -121.58% | 507.32% | 116.77% | 40.61% | -18.17% |
| Avg. Price | $126.45 | $103.6 | $142.85 | $162.87 | $207.09 | $255.35 |
| P/E Ratio | 33.02 | -126.34 | 42.51 | 22.4 | 20.24 | 30.54 |
| Free Cash Flow (M) | $1,032 | $1,504 | $994 | $2,031 | $2,718 | $1,999 |
| CAPEX (M) | $653 | $135 | $183 | $332 | $452 | $750 |
| EV / EBITDA | 24.36 | 76.67 | 26.94 | 16.75 | 18.19 | 19.23 |
| Total Debt (M) | $10,940 | $10,376 | $10,138 | $10,064 | $11,873 | $1,364 |
| Net Debt / EBITDA | 4.86 | 16.9 | 4.28 | 2.55 | 2.79 | 0.25 |
| Current Ratio | 0.47 | 0.49 | 0.57 | 0.45 | 0.43 | 0.4 |
Marriott International has generally positive cash flows, growing revenues and a flat capital expenditure trend, and a strong EPS growth trend. However, the firm suffers from not enough current assets to cover current liabilities because its current ratio is 0.4 and a highly leveraged balance sheet. Finally, we note that Marriott International has weak operating margins with a positive growth rate.
