Taking a look at a recent 8-K report, we can see a few highlights of the third quarter for 2016. The company closed their acquisition of Starwood Hotels & Resorts Worldwide on September 23, 2016 and had nearly 1.6 million rooms open or in development. Third quarter reported diluted EPS totaled $0.26, which was a 67 percent decrease over prior year results. Third quarter also reported net income of $70 million, a 67 percent decrease over prior year results. The numbers are certainly mixed if you review the whole report, but let us look at the chart and see how price is reacting.
Price is currently testing the recent highs and appears to be trying to break higher. Here, I would be watching for a break of the high on volume, to ensure there are buyers backing the price increase. Right now, patience will certainly serve you well and could pay later on. The chart looks healthy has been on an increase for the last few years. Be careful though because if a market slow downs occurs and fear enters into the overall market, this could pull the price down
Typically, a company's
financial statements are the reports that show the
financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Marriott International income statement, its balance sheet, and the statement of cash flows. Potential Marriott International investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Marriott International investors may use each financial statement separately, they are all related. The changes in Marriott International's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Marriott International's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our
technical analysis and
fundamental analysis pages.
The goal of Marriott International
fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Marriott International performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Marriott International shares is the value that is considered the true value of the share. If
the intrinsic value of Marriott is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Marriott International. Please read more on our
fundamental analysis page.
How effective is Marriott International in utilizing its assets?
Marriott International reports assets on its Balance Sheet. It represents the amount of Marriott resources that either has an existing economic value or will provide some form of benefits in the future. By effectively utilizing its assets, Marriott International aims to generate revenue, control costs, drive operational efficiency, and enhance profitability. Optimizing asset utilization helps maximize shareholder value and maintain a competitive position in the Hotels, Resorts & Cruise Lines space. To get a better handle on how balance sheet or income statements item affect Marriott volatility, please check the breakdown of all its
fundamentals.
Are Marriott International Earnings Expected to grow?
The
future earnings power of Marriott International involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of Marriott International factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. Marriott International
stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of Marriott
expected earnings.
And What about dividends?
A dividend is the distribution of a portion of Marriott International earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Marriott International dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Marriott one year expected dividend income is about USD0.99 per share.
At this time, Marriott International's
Dividends Paid is relatively stable compared to the past year. As of 04/24/2024,
Dividend Paid And Capex Coverage Ratio is likely to grow to 24.66, while
Dividend Yield is likely to drop 0.01.
Investing in dividend-paying stocks, such as Marriott International is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Marriott International must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Marriott International. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.
Marriott International Gross Profit
Marriott International Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Marriott International previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Marriott International Gross Profit growth over the last 10 years. Please check Marriott International's
gross profit and other
fundamental indicators for more details.
Breaking down Marriott International Indicators
Risks
You can take a look at the most recent 10-K report to gather a full view of the risks that are posed to the company, but here are a couple to take note of. The company’s lodging operations are subject to global, regional, and national conditions. This is crucial because things in the United States may be going well, but if on the other side of the world things are negative, this could still impact the company’s stock price, in turn hurting your investment. Also, the company is subject to new programs and newly branded products not being successful. Obviously, some things are subject to failing, but you don’t want this to being hindering profit growth for investors or potentially damaging the business.
Conclusion
Hotels are great companies because once the capital is paid for, they are only left with the monthly costs. However, people need to stay in these buildings for the company to make money, which brings me to the conclusion that hotels are great business cycle and macro economy investments. Right now might be too late to catch a large move, but contact an investing professional and they can help determine the best course of action to better your portfolio.
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Nathan Young is a Senior Member of Macroaxis Editorial Board - US Equity Analysis. With years of experience in the financial sector, Nathan brings a diverse base of knowledge. Specifically, he has in-depth understanding of application of technical and fundamental analysis across different equity instruments. Utilizing SEC filings and technical indicators, Nathan provides a reputable analysis of companies trading in the United States.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Nathan Young do not own shares of Marriott International. Please refer to our
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