Marriott International Inc (MAR) stock analysis

P/E above its 5-year median

Marriott International's P/E of 42.8 is above its own 5-year median of 29.7.

P/E above the industry

Marriott International's P/E of 42.8 is above the Hotels and Motels median of 25.6.

EV/EBITDA above its 5-year median

Marriott International's EV/EBITDA of 29.5 is above its 5-year median of 22.9.

P/S above the industry

Marriott International's price-to-sales of 4.08 is above the Hotels and Motels median of 1.60 (book value is negative, so we use sales).

Trading above fair value

The share price of $429.18 is above our fair value estimate of $220.55.

Margin of safety under 20%

The price is 94.6% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew 8.0% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew 9.5% a year over the last three fiscal years.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing faster than the industry

Revenue grew 5.8% over the last twelve months; the Hotels and Motels median is 3.9%.

Guidance raised

Marriott International raised its Full Year 2026 Capital return to shareholders outlook on Nov 2, 2026.

Gross margin trend

This company does not report gross profit.

Return on equity

Needs positive equity and five years of results.

Return on capital over 10%

Return on invested capital was 27.7%, above the 10% that usually covers the cost of capital.

Return on equity against the industry

Needs positive equity.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin below its 5-year average

Net margin was 9.7% over the last twelve months, against a 5-year average of 10.3%.

Net margin above the industry

Marriott International's net margin of 9.7% is above the Hotels and Motels median of 5.7%.

Debt level

Needs debt and equity figures.

Debt trend

Needs a balance sheet from five years ago with positive equity.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 24.2% of total debt.

Interest not well covered

Operating income covers interest expense 5.0 times; we look for at least 5.

Short-term assets don't cover short-term debts

Current assets are 0.53 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 4.36; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Marriott International paid dividends worth 0.7% of the share price over the last twelve months.

Yield below Treasuries

The 0.7% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Marriott International yields 0.7%.

Dividend was cut

The dividend per share fell by more than 10% at least once in the last 8 fiscal years.

Covered by earnings

Dividends take 27.8% of net income.

Covered by free cash flow

Dividends take 21.2% of free cash flow.