Marriott International (MAR) AI Stock Analysis

• Market Cap: $62.02B
• Dividend Yield: 1.07%
• Average Volume (3M): 2.31M
• Price to Earnings (P/E): 27.0
• Beta (1Y): 1.02
• Revenue Growth: 5.85%
• EPS Growth: -18.43%
• Country: US
• Employees: 418,000
• Sector: Consumer Cyclical
• Sector Strength: 66
• Industry: Travel Lodging
• EPS (TTM): 2.45
• Shares Outstanding: 275,372,770
• 10 Day Avg. Volume: 2,987,426
• 30 Day Avg. Volume: 2,307,535
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 9.89
• Price to Cash Flow (P/CF): 51.50
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.50
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 18.25
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $280.00
• Price Target Upside: 18.54% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 20

Marriott's stock score is influenced by its solid financial recovery and strong cash flow, but is weighed down by high leverage and negative equity. Technical indicators signal bearish trends. Valuation metrics show moderate pricing, while the earnings call provides optimism with robust growth and development plans. The recent board expansion adds a positive governance aspect.

Positive Factors

Brand Strength

The venture underscores the strength of Ritz Carlton as a luxury brand and the viability of some of the company’s brands across a range of hospitality products.

Financial Strategy

Management noted financial strength to weather any revised outlooks, as well as flexibility around spending initiatives, including share repurchases.

Negative Factors

Consumption Patterns

Marriott may face challenges as value-driven consumption could lead to a shift from luxury rooms to lower price offerings.

Cost Pressures

Rising staffing costs are expected to negatively impact property-level margins.

Economic Assumptions

CFO Leeny Oberg acknowledged potential for changes to broader economic assumptions in light of recent tariffs announcements.

Marriott International Business Overview & Revenue Model

Company Description

Marriott International, Inc. operates, franchises, and licenses hotel, residential, and timeshare properties worldwide. The company operates through U.S. and Canada, and International segments. It operates its properties under the JW Marriott, The Ritz-Carlton, Ritz-Carlton Reserve, W Hotels, The Luxury Collection, St. Regis, EDITION, Bulgari, Marriott Hotels, Sheraton, Delta Hotels, Marriott Executive Apartments, Marriott Vacation Club, Westin, Renaissance, Le Méridien, Autograph Collection, Gaylord Hotels, Tribute Portfolio, Design Hotels, Courtyard, Residence Inn, Fairfield by Marriott, SpringHill Suites, Four Points, TownePlace Suites, Aloft, AC Hotels by Marriott, Protea Hotels, Element, and Moxy brand names. As of February 15, 2022, it operated approximately 7,989 properties under 30 hotel brands in 139 countries and territories. Marriott International, Inc. was founded in 1927 and is headquartered in Bethesda, Maryland.

How the Company Makes Money

Marriott International makes money primarily through its hotel operations, which include management fees, franchise fees, and property-level revenue. The company earns management fees by operating hotels on behalf of property owners, while franchise fees are collected from hotels that operate under one of Marriott's brands. Additionally, Marriott generates revenue from the sale of rooms, food and beverage services, and other hotel amenities. The company also benefits from its loyalty program, Marriott Bonvoy, which enhances customer retention and drives repeat business. Significant partnerships with airlines, credit card companies, and travel service providers further enhance Marriott's revenue streams by broadening its customer base and increasing brand visibility.

Marriott International Financial Statement Overview

Summary

Marriott shows resilience in revenue recovery and profitability post-pandemic but faces challenges with high leverage and negative equity, posing significant financial stability risks. Strong cash flow generation is a positive, but balance sheet weaknesses need addressing for sustained growth.

Income Statement

Marriott's revenue growth showed a positive trajectory, recovering from the pandemic impact, but the latest year saw a significant drop in revenue. The net profit margin has been stable, indicating decent profitability, although the latest TTM data reflects a notable decline. Despite these challenges, the company has maintained a positive EBIT and EBITDA margin, demonstrating operational resilience.

Balance Sheet

The balance sheet reflects high leverage with a negative stockholders' equity, raising concerns about financial stability. This indicates potential risks, such as difficulty in securing financing and vulnerability to economic downturns. The debt-to-equity ratio is unfavorable, highlighting a need for improved capital structure management.

Cash Flow

Marriott's cash flow statement reveals strong free cash flow generation, especially in the latest periods. The operating cash flow to net income ratio is healthy, indicating efficient cash earnings. However, the negative equity on the balance sheet and cash reserves may constrain future investment opportunities.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
25.10B	23.71B	20.77B	13.86B	10.57B
	Gross Profit
5.10B	5.12B	4.56B	2.80B	1.46B
	EBIT
3.77B	3.92B	3.53B	1.75B	246.00M
	EBITDA
4.34B	4.22B	3.72B	1.90B	457.00M
	Net Income Common Stockholders
2.38B	3.08B	2.36B	1.10B	-267.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
396.00M	338.00M	507.00M	1.39B	877.00M
	Total Assets
15.55B	25.67B	24.82B	25.55B	24.70B
	Total Debt
15.24B	12.76B	11.10B	11.24B	11.20B
	Net Debt
14.85B	12.42B	10.59B	9.84B	10.32B
	Total Liabilities
17.19B	26.36B	24.25B	24.14B	24.27B
	Stockholders Equity
-1.64B	-682.00M	568.00M	1.41B	430.00M
Cash Flow		Free Cash Flow
2.75B	2.72B	2.03B	994.00M	1.50B
	Operating Cash Flow
2.75B	3.17B	2.36B	1.18B	1.64B
	Investing Cash Flow
-734.00M	-465.00M	-297.00M	-187.00M	35.00M
	Financing Cash Flow
-1.96B	-2.86B	-2.96B	-463.00M	-1.03B

Marriott International Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 236.20
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MAR, the sentiment is Neutral. The current price of 236.2 is above the 20-day moving average (MA) of 226.25, below the 50-day MA of 247.95, and below the 200-day MA of 256.17, indicating a neutral trend. The MACD of -4.95 indicates Negative momentum. The RSI at 52.47 is Neutral, neither overbought nor oversold. The STOCH value of 86.89 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for MAR.

Marriott International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HTHT	73 Outperform	$10.70B	26.12	25.06%	3.58%	7.68%	-25.12%
HLT	72 Outperform	$52.62B	35.77	-41.19%	0.27%	9.17%	42.78%
WH	70 Outperform	$6.60B	23.61	41.40%	1.82%	―	6.40%
H	67 Neutral	$10.41B	8.62	36.45%	0.53%	-6.41%	511.40%
IHG	62 Neutral	$15.72B	26.69	-27.16%	1.45%	6.34%	-11.99%
Sector *	60 Neutral	$6.85B	11.71	3.16%	4.15%	2.39%	-21.87%
MAR	56 Neutral	$62.02B	27.05	-144.82%	1.07%	5.85%	-18.43%

Marriott International Corporate Events

Marriott Expands Board with New Member Appointment

On January 17, 2025, Marriott International’s Board of Directors expanded to thirteen members and elected Sean Tresvant as a new board member, with his position effective from February 12, 2025. This strategic move, with no financial interests or arrangements influencing Tresvant’s appointment, is positioned to enhance the company’s governance and potentially strengthen its stakeholder confidence.