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For long term investors, improvement in profitability and outperformance against the industry can be important characteristics in a stock. In this article, I will take a look at Marriott International Inc’s (NASDAQ:MAR) track record on a high level, to give you some insight into how the company has been performing against its historical trend and its industry peers. See our latest analysis for Marriott International
How Did MAR’s Recent Performance Stack Up Against Its Past?
To account for any quarterly or half-yearly updates, I use the ‘latest twelve-month’ data, which annualizes the latest 6-month earnings release, or some times, the latest annual report is already the most recent financial data. This enables me to examine different companies on a similar basis, using the most relevant data points. For Marriott International, its latest earnings (trailing twelve month) is US$1.40B, which, against last year’s level, has moved up by a non-trivial 50.11%. Since these values may be relatively myopic, I have determined an annualized five-year figure for Marriott International’s earnings, which stands at US$735.00M This suggests that, on average, Marriott International has been able to gradually raise its bottom line over the last few years as well.
How has it been able to do this? Let’s take a look at if it is only due to industry tailwinds, or if Marriott International has experienced some company-specific growth. In the last few years, Marriott International grew its bottom line faster than revenue by efficiently controlling its costs. This brought about a margin expansion and profitability over time. Inspecting growth from a sector-level, the US hospitality industry has been growing its average earnings by double-digit 13.77% in the previous twelve months, and 12.13% over the past half a decade. This means any uplift the industry is gaining from, Marriott International is able to leverage this to its advantage.
What does this mean?
Though Marriott International’s past data is helpful, it is only one aspect of my investment thesis. While Marriott International has a good historical track record with positive growth and profitability, there’s no certainty that this will extrapolate into the future. I recommend you continue to research Marriott International to get a better picture of the stock by looking at:
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Future Outlook: What are well-informed industry analysts predicting for MAR’s future growth? Take a look at our free research report of analyst consensus for MAR’s outlook.
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Financial Health: Is MAR’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
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Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
NB: Figures in this article are calculated using data from the trailing twelve months from 31 March 2018. This may not be consistent with full year annual report figures.
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.