MAR
Marriott International (MAR), a giant in the hospitality sector, holds a respectable market capitalization of $74.395 billion. With a Price-to-Earnings (P/E) ratio of 26.43, the stock reflects reasonable investor confidence in its profitability. Marriott's Return on Equity (ROE) is not explicitly provided here, but the company's performance metrics, such as the operating margin of 70.31%, indicate robust efficiency in generating profits from its operations.
The company demonstrates a strong operating margin, suggesting high profitability in its core hospitality operations. However, Marriott's current ratio of 0.42 indicates a challenge in covering short-term liabilities with its short-term assets, a point of consideration for potential investors. This could imply liquidity challenges in managing day-to-day expenses, which may require attention to how the company finances its operations.
With a powerful free cash flow of approximately $2.67 billion, Marriott shows its ability to invest in expansion, pay dividends, or reduce debt. However, the trailing PEG ratio of 2.52 suggests the stock is valued higher than its projected earnings growth, which stands at a progressive 13%. Although this indicates potential overvaluation, the growth rate itself offers promise for future earnings.
Revenue growth is moderate at 5.7%, indicating stable business performance. An impressive EBITDA margin of 66.05% highlights Marriott's efficient profit structure and operational strength. Institutional investors display strong confidence in Marriott, with 62.13% of shares held by institutions, reflecting a solid belief in the company's potential for sustained growth.
For investors, Marriott presents a mixed bag; while financial efficiency and strong cash flows are bright spots, its liquidity position and stock valuation require careful monitoring. This overview offers potential investors a comprehensive look at Marriott's financial health, underlining its strengths and identifying areas for vigilance as they ponder long-term investment.
Last Updated: January 14, 2025
| Metric | Value |
|---|---|
| Market Cap | 76.71 B |
| P/E Ratio | 28.91 |
| ROE | NaN % |
| Debt to Equity | |
| Operating Margin | 58.18 % |
| Free Cash Flow | 2.55 B |
| Institutional Holdings | 61.31 % |
| Revenue Growth | 6.60 % |
Discover Marriott's Competitive Field
- Luxury and Premium Hotel Segment: In the luxury hotel segment, Marriott juggles maintaining exclusivity and expanding its reach. Competitors like Hilton and Accor are vying for the attention of affluent travelers.
- Midscale and Budget Hotel Segment: As the travel industry recovers, the demand for midscale and budget accommodations rises. Marriott faces competition from IHG and Wyndham in catering to cost-conscious travelers without sacrificing quality.
- Online Travel Agencies (OTAs): The rapid digital transformation has compelled Marriott to compete not just with hotels, but also with online travel agencies that are redefining guest interactions and bookings.
- Short-Term Rentals: As travelers seek unique, personalized stays, platforms offering short-term rentals pose an evolving challenge to traditional hotel models.
Navigating a complex competitive landscape, Marriott remains resilient, leveraging its brand legacy, expansive loyalty program, and adaptability to win hearts worldwide. While challenges loom from both traditional competitors and innovative disruptors, Marriott's strategic investments in technology and expanding portfolio keep it poised for future growth. Long-term investors should watch how Marriott harnesses its strengths to innovate and capture emerging travel trends.
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