Advertisement
U.S. markets closed
  • S&P 500

    5,254.35
    +5.86 (+0.11%)
     
  • Dow 30

    39,807.40
    +47.29 (+0.12%)
     
  • Nasdaq

    16,379.46
    -20.06 (-0.12%)
     
  • Russell 2000

    2,124.55
    +10.20 (+0.48%)
     
  • Crude Oil

    83.11
    -0.06 (-0.07%)
     
  • Gold

    2,254.80
    +16.40 (+0.73%)
     
  • Silver

    25.10
    +0.18 (+0.74%)
     
  • EUR/USD

    1.0799
    +0.0006 (+0.05%)
     
  • 10-Yr Bond

    4.2060
    +0.0100 (+0.24%)
     
  • GBP/USD

    1.2641
    +0.0019 (+0.15%)
     
  • USD/JPY

    151.2340
    -0.1380 (-0.09%)
     
  • Bitcoin USD

    70,483.03
    -311.73 (-0.44%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • FTSE 100

    7,952.62
    +20.64 (+0.26%)
     
  • Nikkei 225

    40,369.44
    +201.37 (+0.50%)
     

Marriott International Inc (NASDAQ:MAR): Poised For Long-Term Success?

The latest earnings release Marriott International Inc’s (NASDAQ:MAR) announced in December 2017 revealed that the business experienced a sizeable tailwind, leading to a high double-digit earnings growth of 75.90%. Below is my commentary, albeit very simple and high-level, on how market analysts perceive Marriott International’s earnings growth trajectory over the next few years and whether the future looks even brighter than the past. Note that I will be looking at net income excluding extraordinary items to get a better understanding of the underlying drivers of earnings. View our latest analysis for Marriott International

Analysts’ expectations for the coming year seems optimistic, with earnings expanding by a robust 39.86%. This growth seems to continue into the following year with rates arriving at double digit 54.33% compared to today’s earnings, and finally hitting US$2.28B by 2021.

NasdaqGS:MAR Future Profit Mar 15th 18
NasdaqGS:MAR Future Profit Mar 15th 18

Although it is informative knowing the growth rate each year relative to today’s figure, it may be more insightful to analyze the rate at which the company is moving on average every year. The advantage of this technique is that we can get a bigger picture of the direction of Marriott International’s earnings trajectory over the long run, irrespective of near term fluctuations, which may be more relevant for long term investors. To compute this rate, I’ve inserted a line of best fit through the forecasted earnings by market analysts. The slope of this line is the rate of earnings growth, which in this case is 16.03%. This means, we can presume Marriott International will grow its earnings by 16.03% every year for the next couple of years.

Next Steps:

For Marriott International, I’ve put together three fundamental aspects you should look at:

  1. Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.

  2. Valuation: What is MAR worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether MAR is currently mispriced by the market.

  3. Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of MAR? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!


To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned.

Advertisement