Marriott International Inc.Find Ratings Reports
MARRIOTT INTL INC's gross profit margin for the second quarter of its fiscal year 2019 has significantly decreased when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its subsector. MARRIOTT INTL INC has very weak liquidity. Currently, the Quick Ratio is 0.46 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.
At the same time, stockholders' equity ("net worth") has significantly decreased by 56.35% from the same quarter last year. The key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the near future.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. To learn more visit www.TheStreetRatings.com.
|Income Statement||Q2 FY19||Q2 FY18|
|Net Sales ($mil)||5305.0||5409.0|
|Net Income ($mil)||232.0||667.0|
|Balance Sheet||Q2 FY19||Q2 FY18|
|Cash & Equiv. ($mil)||284.0||366.0|
|Total Assets ($mil)||24893.0||23844.0|
|Total Debt ($mil)||11434.0||8991.0|
|Profitability||Q2 FY19||Q2 FY18|
|Gross Profit Margin||12.57||17.16|
|Return on Assets||5.73||7.07|
|Return on Equity||115.08||59.34|
|Debt||Q2 FY19||Q2 FY18|
|Share Data||Q2 FY19||Q2 FY18|
|Shares outstanding (mil)||330.6||348.7|
|Div / share||0.48||0.41|
|Book value / share||3.75||8.15|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||1650242.0||1941169.0|
BUY. The current P/E ratio indicates a discount compared to an average of 35.68 for the Accommodation subsector and a premium compared to the S&P 500 average of 21.19. For additional comparison, its price-to-book ratio of 33.78 indicates a significant premium versus the S&P 500 average of 3.21 and a significant premium versus the subsector average of 8.69. The price-to-sales ratio is similar to the S&P 500 average, but it is significantly below the subsector average, indicating a discount. The valuation analysis reveals that, MARRIOTT INTL INC seems to be trading at a discount to investment alternatives.
|MAR 30.60||Peers 31.80||MAR 21.31||Peers 17.10|
Average. An average P/E ratio can signify an subsector neutral price for a stock and an average growth expectation.
MAR is trading at a valuation on par with its peers.
Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.
MAR is trading at a premium to its peers.
|MAR 18.88||Peers 26.50||MAR 2.57||Peers 5.25|
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.
MAR is trading at a discount to its peers.
Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.
MAR trades at a significant discount to its peers.
|MAR 33.78||Peers 8.69||MAR -10.59||Peers 7.88|
Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.
MAR is trading at a significant premium to its peers.
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
However, MAR is expected to significantly trail its peers on the basis of its earnings growth rate.
|MAR 2.03||Peers 4.18||MAR -0.42||Peers 8.39|
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.
MAR is trading at a significant discount to its subsector on this measurement.
Lower. A sales growth rate that trails the subsector implies that a company is losing market share.
MAR significantly trails its peers on the basis of sales growth.