Marriott Story

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MAR -- USA Stock  

USD 135.61  3.29  2.49%

As many investors are getting excited about consumer cyclical space, it is fair to sum up Marriott International. We will analyze why Marriott International investors may still consider a stake in the business. What is the entity valuation so far in 2020? We are going to cover the stock perspective on valuation to give investors a better transparency on taking a position in it.
Published over three weeks ago
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Should you exit Marriott International (NASDAQ:MAR) based on its latest valuation?
This firm has 12.77 B in debt with debt to equity (D/E) ratio of 1.27, which is OK given its current industry classification. Marriott International has performance score of 1 on a scale of 0 to 100. The company secures a Beta (Market Risk) of 0.3389, which conveys possible diversification benefits within a given portfolio. Let's try to break down what Marriott's beta means in this case. As returns on the market increase, Marriott International returns are expected to increase less than the market. However, during the bear market, the loss on holding Marriott International will be expected to be smaller as well. Although it is extremely important to respect Marriott International price patterns, it is better to be realistic regarding the information on equity historical price patterns. The philosophy towards estimating future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. By analyzing Marriott International technical indicators, you can presently evaluate if the expected return of 0.0455% will be sustainable into the future. Marriott International right now secures a risk of 2.5%. Please verify Marriott International value at risk, as well as the relationship between the skewness and day median price to decide if Marriott International will be following its current price movements.
We determine the current worth of Marriott International using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Marriott International based exclusively on its fundamental and basic technical indicators. By analyzing Marriott International's financials, quarterly and monthly indicators, and related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Marriott International's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Marriott International. We calculate exposure to Marriott International's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Marriott International's related companies.

Marriott International Investment Alerts

Marriott investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring Marriott International performance across your portfolios.Please check all investment alerts for Marriott

Marriott International Valuation Ratios as Compared to Competition

Our valuation model uses many indicators to compare Marriott value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Marriott International competition to find correlations between indicators driving the intrinsic value of Marriott.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions. It is good to see analyst projects for Marriott International, but it might be worth checking our own buy vs. sell analysis

Breaking down the case for Marriott International

The company reported the last year's revenue of 3.86 B. Total Income to common stockholders was 463 M with profit before taxes, overhead, and interest of 4.06 B.
 2017 2018 2019 2020 (projected)
Long Term Debt to Equity2.13.8314.1715.29
Interest Coverage9.447.444.895.85

Margins Breakdown

Marriott profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Marriott International itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of Marriott International profit margins.
Operating Margin7.6
EBITDA Margin0.11
Gross Margin0.16
Profit Margin0.0589

Marriott International Earnings Before Interest Taxes and Depreciation Amortization USD is increasing over the last 8 years. The latest value of Marriott International Earnings Before Interest Taxes and Depreciation Amortization USD is 2,163,947,369. Further, Marriott International Earnings Before Interest Taxes and Depreciation Amortization EBITDA is increasing over the last 8 years. Marriott International Earnings Before Interest Taxes and Depreciation Amortization USD is increasing over the last 8 years. Further, Marriott International Earnings Before Interest Taxes and Depreciation Amortization EBITDA is increasing over the last 8 years.

Our take on today Marriott International spike

The skewness is down to -0.18 as of today. Marriott International currently demonstrates below-verage downside deviation. It has Information Ratio of 0.06 and Jensen Alpha of 0.18. However, we do advice investors to further question Marriott International expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.

Our Takeaway on Marriott International Investment

When is the right time to buy or sell Marriott International? Buying stocks such as Marriott International isn't very hard. However, what challenging for most investors is doing it at the right time. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities, deliver winning trades and diversify portfolios on a daily bases. All things considered, as of the 6th of November 2020, our research shows that Marriott International is a rather very steady investment opportunity with a below average probability of financial unrest in the next two years. From a slightly different view, the entity currently appears to be fairly valued. Our up-to-date 30 days buy-hold-sell recommendation on the enterprise is Strong Hold.

About Contributor

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 Achuva Shats do not own shares of Marriott International. Please refer to our Terms of Use for any information regarding our disclosure principles.

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