Last Updated: 09 Nov 2024
Executive Summary
Marriott International Inc. (MAR) is a global leader in the hospitality industry, with a diverse portfolio of hotel brands and a strong presence in key markets. The company's recent financial performance has been robust, with revenue and earnings growth driven by strong demand for travel and leisure. However, the stock's valuation appears somewhat stretched, and there are some concerns about the impact of a potential economic slowdown on the hospitality sector.
Company Overview
Marriott International is a multinational hospitality company that operates, franchises, and licenses lodging properties worldwide. The company's portfolio includes over 8,000 properties in 139 countries and territories, ranging from luxury hotels to budget-friendly accommodations. Marriott's brands include Marriott Hotels, Sheraton, Westin, W Hotels, and Ritz-Carlton.
Fundamental Analysis
Revenue: Marriott International's revenue has grown steadily in recent years, reaching $65.7 billion in the trailing twelve months (TTM). The company's revenue is driven by a combination of room bookings, food and beverage sales, and other services.
Earnings: The company's earnings per share (EPS) has also grown in recent years, reaching $9.61 in the TTM. Marriott's profit margin has improved in recent quarters, driven by cost-cutting measures and strong demand for travel.
Valuation: Marriott International's stock is currently trading at a price-to-earnings (PE) ratio of 28.89, which is above the industry average. The company's price-to-sales (PS) ratio of 11.13 is also above the industry average.
Dividend: Marriott International pays a quarterly dividend of $0.23 per share, which equates to a dividend yield of 0.0091%.
Technical Analysis
Trend: Marriott International's stock price has been trending higher in recent months, but it has recently pulled back from its 52-week high of $282.8.
Support and Resistance: The stock price has found support at its 50-day moving average of $249.24 and resistance at its 200-day moving average of $242.06.
Momentum: The stock's momentum indicators are currently neutral, suggesting that the stock is not in a strong uptrend or downtrend.
Short Term Outlook
In the short term, Marriott International's stock price is likely to be influenced by the overall market sentiment and the company's upcoming earnings report. If the market remains positive and the company reports strong earnings, the stock price could continue to trend higher. However, if the market turns negative or the company's earnings disappoint, the stock price could pull back.
Long Term Outlook
In the long term, Marriott International is well-positioned to benefit from the growing demand for travel and leisure. The company's strong brand portfolio and global presence give it a competitive advantage in the hospitality industry. However, the company faces some challenges, such as increasing competition and the potential impact of a recession.
Analyst Recommendations
The majority of analysts covering Marriott International have a "Hold" rating on the stock. However, there are a few analysts who have a "Buy" or "Strong Buy" rating on the stock. The average analyst target price for Marriott International is $259.32, which implies a potential upside of 7.6% from the current stock price.
