MARRIOTT INTERNATIONAL INC /MD/ (MAR) Stock Analysis
MARRIOTT INTERNATIONAL INC /MD/ (MAR) Stock Analysis
Analysis from 10-Q filed 2025-11-04. Data as of Q4 2025.
Overall Grade: F (Concerning)
MARRIOTT INTERNATIONAL INC /MD/ faces challenges in financial performance that warrant careful analysis.
| Metric | Value | Context |
|---|---|---|
| ROIC | 24.5% | Above industry average |
| FCF Margin | 12.3% | Healthy cash flow |
| Debt/Equity | -4.0x | Conservative leverage |
Investment Thesis: Strong return on invested capital of 24.5% suggests durable competitive advantages and efficient capital allocation.
Explore MARRIOTT INTERNATIONAL INC /MD/: Earnings History | Filing Intelligence | ROIC Analysis
Profitability: MARRIOTT INTERNATIONAL INC /MD/ earns 24.5% ROIC, Top 25% in Technology
MARRIOTT INTERNATIONAL INC /MD/'s trailing-twelve-month ROIC of 24.5% ranks Top 25% in Technology companies (sector median: 5.2%), driven by NOPAT margin of 12.1% combined with asset turnover of 1.0x. Source: 10-Q filed 2025-11-04.
| Metric | MAR | Rating | Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 24.5% | Excellent | Above sector median of 5.2% |
| Return on Equity (ROE) | -82.4% | Red flag | Moderate equity returns |
| Operating Margin | 15.8% | Good | Efficient operations |
Cash Flow: MARRIOTT INTERNATIONAL INC /MD/ generates $3.2B FCF at 12.3% margin, positive NaN/8 quarters
MARRIOTT INTERNATIONAL INC /MD/ generated $3.2B in free cash flow (TTM), a 12.3% FCF margin, a margin that ranks Top 50% in Technology. Operating cash flow exceeds net income by 1.2x, indicating high earnings quality. FCF was positive in N/A of the last 8 quarters. Source: 10-Q filed 2025-11-04.
| Metric | MAR | Rating | Context |
|---|---|---|---|
| Free Cash Flow Margin | 12.3% | Good | Healthy cash generation |
| Free Cash Flow (TTM) | $3.2B | Good | Positive cash generation |
| OCF/Net Income | 1.2x | Excellent | High earnings quality |
| FCF Consistency (8Q) | N/A | Warning | Variable cash flow |
Balance Sheet: MARRIOTT INTERNATIONAL INC /MD/ at -4.0x leverage
MARRIOTT INTERNATIONAL INC /MD/'s debt-to-equity ratio of -4.0x reflects conservative leverage. Total debt of $15.0B offset by $371.0M in cash. Source: 10-Q filed 2025-11-04.
| Metric | MAR | Rating | Context |
|---|---|---|---|
| Debt to Equity | -4.0x | Excellent | Conservative capital structure |
| Net Cash Position | $-14.6B | Warning | Net debt position |
Valuation: MARRIOTT INTERNATIONAL INC /MD/ trades at 32.6x earnings
MARRIOTT INTERNATIONAL INC /MD/ trades at a P/E of 32.6x. Free cash flow yield of 3.8% reflects market expectations for growth.
| Metric | MAR | Rating | Context |
|---|---|---|---|
| P/E Ratio | 32.6x | Adequate | Premium valuation |
| EV/Sales | 3.8x | Good | Growth premium priced in |
| FCF Yield | 3.8% | Adequate | Lower cash yield |
| Dividend Yield | 0.8% | Adequate | Growth focus over income |
Capital Allocation: MARRIOTT INTERNATIONAL INC /MD/ returns 4.7% shareholder yield
MARRIOTT INTERNATIONAL INC /MD/'s total shareholder yield is 4.7% (dividends 0.8% + buybacks 3.9%). Source: 10-Q filed 2025-11-04.
| Metric | MAR | Rating | Context |
|---|---|---|---|
| Total Shareholder Yield | 4.7% | Good | Dividend + buyback yield combined |
| Buyback Yield | 3.9% | Good | Active share repurchases |
| Total Capital Returned (TTM) | $4.0B | Good | Dividends + buybacks returned to shareholders |
Sector Rankings
| Metric | Value | Percentile | vs Median |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 24.5% | Top 25% | 4.7x above |
| Free Cash Flow Margin | 12.3% | Top 50% | 1.4x above |
| Operating Margin | 15.8% | Top 50% | 3.3x above |
| Return on Equity (ROE) | -82.4% | Top 5% | -16.8x below |
| P/E Ratio | 32.6x | N/A | - |
Financial Scorecard
| Metric | MAR | Rating | Sector Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 24.5% | Excellent | Top 25% of sector (median: 5.2%) |
| Free Cash Flow Margin | 12.3% | Good | Top 50% of sector (median: 9.1%) |
| Debt to Equity Ratio | -397.6% | Excellent | Conservative capital structure |
| P/E Ratio (Price-to-Earnings) | 32.6x | Adequate | Growth premium |
| Free Cash Flow Yield | 3.8% | Adequate | Moderate yield |
Frequently Asked Questions
Q: What is MARRIOTT INTERNATIONAL INC /MD/'s Return on Invested Capital (ROIC)?
MARRIOTT INTERNATIONAL INC /MD/ (MAR) has a trailing twelve-month Return on Invested Capital (ROIC) of 24.5%. This compares above the sector median of 5.2%. An ROIC above 20% indicates exceptional capital efficiency and strong competitive advantages.
Q: What is MARRIOTT INTERNATIONAL INC /MD/'s Free Cash Flow Margin?
MARRIOTT INTERNATIONAL INC /MD/ (MAR) has a free cash flow margin of 12.3%, generating $3.2 billion in free cash flow over the trailing twelve months. A FCF margin between 10-20% represents healthy cash generation for most industries.
Q: Is MARRIOTT INTERNATIONAL INC /MD/ stock overvalued or undervalued?
MARRIOTT INTERNATIONAL INC /MD/ (MAR) trades at a P/E ratio of 32.6x, which is above the sector median of N/A. The EV/Sales multiple is 3.8x. Free cash flow yield is 3.8%, which is in line with market averages.
Q: Does MARRIOTT INTERNATIONAL INC /MD/ pay a dividend?
MARRIOTT INTERNATIONAL INC /MD/ (MAR) currently pays a dividend yield of 0.8%. Including share buybacks, the total shareholder yield is 4.7%. The relatively low yield suggests the company prioritizes growth reinvestment over income distribution.
Q: What is MARRIOTT INTERNATIONAL INC /MD/'s revenue and earnings growth?
MARRIOTT INTERNATIONAL INC /MD/ (MAR) grew revenue by 4.3% year-over-year. Earnings per share increased by 14.2% compared to the prior year. Modest growth indicates a mature business with stable demand.
Q: Is MARRIOTT INTERNATIONAL INC /MD/ buying back stock?
MARRIOTT INTERNATIONAL INC /MD/ (MAR) repurchased $3.3 billion of stock over the trailing twelve months. This represents a buyback yield of 3.9%.
Q: How does MARRIOTT INTERNATIONAL INC /MD/ compare to competitors in Technology?
Compared to other companies in Technology, MARRIOTT INTERNATIONAL INC /MD/ (MAR) shows: ROIC of 24.5% is above the sector median of 5.2% (Top 14%). FCF margin of 12.3% exceeds the sector median of 9.1% (Top 43% of sector). These rankings are based on MetricDuck's analysis of all Technology companies with available SEC filings.
Q: What warning signs should I watch for with MARRIOTT INTERNATIONAL INC /MD/?
MARRIOTT INTERNATIONAL INC /MD/ (MAR) shows no major financial warning signs based on current metrics. However, investors should always monitor: 1) Margin compression trends, 2) Cash flow consistency, 3) Debt levels relative to cash generation, and 4) Changes in competitive positioning.
Data Source: Data sourced from 10-Q filed 2025-11-04. TTM metrics as of Q4 2025.
Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.
Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.
This analysis is for informational purposes only and does not constitute investment advice.