Marriott International Current Valuation vs. Operating Margin

MAQ Stock  EUR 267.10  0.50  0.19%   
Taking into consideration Marriott International's profitability measurements, Marriott International may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in January. Profitability indicators assess Marriott International's ability to earn profits and add value for shareholders.
For Marriott International profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Marriott International to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Marriott International utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Marriott International's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Marriott International over time as well as its relative position and ranking within its peers.
  
Check out Correlation Analysis.
For more detail on how to invest in Marriott Stock please use our How to Invest in Marriott International guide.
Please note, there is a significant difference between Marriott International's value and its price as these two are different measures arrived at by different means. Investors typically determine if Marriott International is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Marriott International's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Marriott International Operating Margin vs. Current Valuation Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Marriott International's current stock value. Our valuation model uses many indicators to compare Marriott International value to that of its competitors to determine the firm's financial worth.
Marriott International is rated top company in current valuation category among its peers. It also is considered to be number one stock in operating margin category among its peers . The ratio of Current Valuation to Operating Margin for Marriott International is about  87,495,825,984 . The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Marriott International's earnings, one of the primary drivers of an investment's value.

Marriott Current Valuation vs. Competition

Marriott International is rated top company in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Lodging industry is now estimated at about 90.12 Billion. Marriott International totals roughly 56.75 Billion in current valuation claiming about 63% of all equities under Lodging industry.

Marriott Operating Margin vs. Current Valuation

Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.

Marriott International

Enterprise Value

 = 

Market Cap + Debt

-

Cash

 = 
56.75 B
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.

Marriott International

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
0.65 %
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.

Marriott Operating Margin Comparison

Marriott International is currently under evaluation in operating margin category among its peers.

Marriott International Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Marriott International, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Marriott International will eventually generate negative long term returns. The profitability progress is the general direction of Marriott International's change in net profit over the period of time. It can combine multiple indicators of Marriott International, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Marriott International, Inc. operates, franchises, and licenses hotel, residential, and timeshare properties worldwide. Marriott International, Inc. was founded in 1927 and is headquartered in Bethesda, Maryland. MARRIOTT INTL operates under Lodging classification in Germany and is traded on Frankfurt Stock Exchange. It employs 176000 people.

Marriott Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Marriott International. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Marriott International position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Marriott International's important profitability drivers and their relationship over time.

Use Marriott International in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Marriott International position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Marriott International will appreciate offsetting losses from the drop in the long position's value.

Marriott International Pair Trading

Marriott International Pair Trading Analysis

The ability to find closely correlated positions to Marriott International could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Marriott International when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Marriott International - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Marriott International to buy it.
The correlation of Marriott International is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Marriott International moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Marriott International moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Marriott International can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Marriott International position

In addition to having Marriott International in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Non-Metallic and Industrial Metal Mining Thematic Idea Now

Non-Metallic and Industrial Metal Mining
Non-Metallic and Industrial Metal Mining Theme
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Non-Metallic and Industrial Metal Mining theme has 61 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Non-Metallic and Industrial Metal Mining Theme or any other thematic opportunities.
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Additional Information and Resources on Investing in Marriott Stock

When determining whether Marriott International is a strong investment it is important to analyze Marriott International's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Marriott International's future performance. For an informed investment choice regarding Marriott Stock, refer to the following important reports:
Check out Correlation Analysis.
For more detail on how to invest in Marriott Stock please use our How to Invest in Marriott International guide.
You can also try the Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
To fully project Marriott International's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Marriott International at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Marriott International's income statement, its balance sheet, and the statement of cash flows.
Potential Marriott International investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Marriott International investors may work on each financial statement separately, they are all related. The changes in Marriott International's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Marriott International's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.