Marriott International, Inc. (MAR) Fundamental Checkup
Marriott International, Inc. fundamental checkup using revenue growth, EPS growth, free cash flow, margins, ROIC, debt-to-equity, and TGMCharts chart exhibits as of August 28, 2026.
By TGMCharts Research · Data as of · Updated
Marriott International, Inc. gets a balanced fundamental read when revenue growth of 22.16%, EPS growth of 16.38%, free-cash-flow growth of 87.84%, net margin of 9.62%, and ROIC of 18.61% support the same story.
The checkup weighs operating growth, shareholder conversion, cash conversion, reinvestment quality, and balance-sheet flexibility. Current ratio is 0.53x and debt-to-equity is -3.93x, so the balance-sheet read is part of the final view rather than a footnote.
- Marriott International, Inc. has market cap of $91.55B and closed at $351 on August 28, 2026.
- Five-year revenue CAGR is 22.16% and five-year EPS CAGR is 16.38%.
- Five-year free-cash-flow CAGR is 87.84%.
- Net margin is 9.62% and ROIC is 18.61%.
- Current ratio is 0.53x and debt-to-equity is -3.93x.
Fundamental snapshot
The valuation, growth, profitability, and balance-sheet facts behind the checkup.
Cohesive Operating Performance and Capital Allocation
Evaluating Marriott International, Inc. requires a systematic look at how its top-line expansion, cash conversion efficiency, reinvestment quality, and balance sheet structure interact. With the equity trading at $351 as of August 28, 2026, we must analyze the underlying business metrics before examining the market valuation. This research note investigates whether the company's operational growth and capital allocation support its current market position.
A comprehensive analysis cannot rely on a single metric. While the five-year revenue CAGR stands at 22.16% and the five-year EPS CAGR has reached 16.38%, these figures must be cross-referenced with a five-year free cash flow CAGR of 87.84%. This multi-dimensional assessment ensures that earnings growth is backed by actual cash generation rather than accounting adjustments.
Current compounder snapshot · MAR
Live supporting context; not part of the article's frozen 2026-08-28 evidence snapshot.
- Score
- 12/100
- 10Y CAGR
- 6.1%
- Median YoY
- 5.5%
- YoY volatility
- σ 38.6pp· choppy
- Quarters ≥ 20%
- 12 of 40
- Negative quarters
- 8
- Valuation vs own 10Y history
- P/S 3.5x · 10Y median 2.7x · 85th percentile · as of Aug 28, 2026
How this score is computed
- Quarters at or above 20%: 12 of 40 → 12 of 40 pts
- Steadiness (typical swing 38.6pp) → 0 of 25 pts
- Pace (median 5.5% YoY) → 0 of 20 pts
- Latest quarter (4.8% YoY) → 0 of 15 pts
- Score: 12 of 100
Annualized revenue (TTM) · by quarter, last 40
Quarterly YoY revenue growth vs the 20% line
P/S multiple vs its 10Y median
Operational Footprint and Financial Baseline
As a major player in the Consumer Cyclical sector, the business model relies on fee-generation and brand licensing, which typically require less capital than direct property ownership. This asset-light approach shapes the entire financial profile, resulting in distinct margin structures and return profiles. The baseline data points to a highly productive operating model, though the leveraged capital structure demands close attention when assessing overall financial health.
Fundamental evidence table
A compact cross-check of valuation, growth, quality, and financial flexibility.
MAR revenue
Revenue history shows whether the business has been expanding before margins and per-share metrics are considered.
Five-year revenue CAGR: 22.16%. This is endpoint-to-endpoint from the fiscal years shown — a depressed start year can inflate it, so read it against the recent bars.
Five-year revenue CAGR of 22.16% is the top-line test. A fundamental checkup becomes more durable when revenue growth is paired with earnings growth instead of depending only on margin expansion.
Translating Top-Line Growth to Per-Share Earnings
The relationship between top-line expansion and bottom-line growth reveals the operating leverage inherent in the business model. The five-year revenue CAGR of 22.16% has translated into a five-year EPS CAGR of 16.38%. This positive conversion rate indicates that the company has successfully managed its cost structure while expanding its global system size.
When per-share earnings outpace revenue growth, it typically points to operating margin expansion, share buybacks, or both. However, sustainable value creation requires that this earnings growth is not merely a function of financial engineering. We must verify that operating efficiency and cash generation are rising in tandem with per-share metrics.
MAR EPS
EPS history shows how much of the business growth has reached shareholders.
Five-year EPS CAGR: 16.38%. This is endpoint-to-endpoint from the fiscal years shown — a depressed or negative start year can inflate it, so read it against the recent bars.
Five-year EPS CAGR of 16.38% is the shareholder conversion check. If EPS grows faster than revenue, the note should ask whether that came from margin quality, buybacks, or a temporary base effect.
Free Cash Flow Trends Confirming Earnings Quality
Free cash flow serves as the ultimate reality check for reported net income. The company has delivered a five-year free cash flow CAGR of 87.84%, demonstrating that earnings are fully backed by hard cash inflows. This positive cash trend provides the business with the liquidity needed to fund system expansion and return capital to shareholders without relying solely on external debt markets.
A divergence where free cash flow lags behind net income would raise flags regarding working capital management or aggressive revenue recognition. In this case, the robust cash flow growth validates the quality of the reported earnings and supports the ongoing viability of the company's capital allocation strategy.
MAR free cash flow
Free cash flow checks whether earnings are converting into owner cash.
Five-year free-cash-flow CAGR: 87.84%. This is endpoint-to-endpoint from the fiscal years shown — a depressed or negative start year can inflate it, so read it against the recent bars.
Free-cash-flow CAGR of 87.84% is the counterweight to the EPS story. If cash flow lags earnings, the quality of the fundamental setup deserves a more cautious reading.
Operating Efficiency and Capital Returns
The durability of the company's growth is closely tied to its profitability margins and return on capital. Currently, the net margin stands at 9.62%, reflecting the high-margin nature of its managed and franchised model. This margin performance ensures that a significant portion of fee revenue flows directly to the bottom line.
Simultaneously, the return on invested capital (ROIC) has reached 18.61%. This level of return indicates highly efficient capital deployment, suggesting that new hotel additions and technology investments are generating returns well above the corporate cost of capital, which historically supports long-term compounding.
MAR net margin
Net margin is the operating-quality check behind the growth record.
Net margin (TTM): 9.62%. The bars below are annual fiscal years.
Net margin of 9.62% shows how much revenue becomes profit. The checkup is stronger when margin quality supports EPS growth rather than simply flattering one recent period.
MAR ROIC
ROIC tests whether the business earns enough on reinvested capital to deserve attention.
Latest ROIC: 18.61%.
ROIC of 18.61% is the reinvestment-quality check. A business with stronger returns can support a better long-term read even when the valuation is not obviously cheap.
Liquidity Constraints and Leverage Profiles
While profitability remains strong, the balance sheet presents a more complex picture. The current ratio is 0.53x, pointing to a tight short-term liquidity position that requires consistent operating cash inflows to meet near-term obligations. Additionally, the debt-to-equity ratio is -3.93x, reflecting a negative equity base driven by historical share repurchases and accumulated debt.
This level of leverage limits financial flexibility during economic downturns when travel demand typically contracts. Investors must weigh the high operational returns against these balance sheet risk factors, as a highly leveraged structure reduces the margin of safety if global RevPAR trends soften.
MAR debt-to-equity Chart
Debt-to-equity keeps the checkup honest about balance-sheet flexibility.
Latest debt-to-equity ratio: -3.93x.
Debt-to-equity of -3.93x and current ratio of 0.53x are the balance-sheet checks. They matter because growth and margins are less valuable if financial flexibility is narrowing.
Market Valuation and Implied Expectations
The market currently prices the equity at a trailing P/E ratio of 36.69x, which corresponds to an earnings yield of 2.73%. This multiple indicates that investors are pricing in continued operational execution and robust cash generation. The current market price sits above the third-party analyst DCF reference value, suggesting a negative margin of safety relative to consensus intrinsic value estimates.
A elevated multiple requires the company to maintain high growth rates and steady margin performance to defend its valuation. Any deceleration in unit growth or pressure on average daily rates could lead to multiple contraction, making the stock sensitive to minor operational misses.
MAR Price Chart
Latest close: $351 as of August 28, 2026.
The close at $351 is not the conclusion, but it is the market reference point. The fundamental read has to explain whether growth, margins, and balance-sheet support justify the price investors are paying.
Key Fundamental Drivers and Structural Vulnerabilities
The core bullish argument rests on the highly profitable, asset-light franchising model which generates high returns on capital and strong free cash flow. The compounding effect of a 22.16% five-year revenue CAGR and an impressive 18.61% ROIC demonstrates the strength of the global lodging network when travel demand is supportive.
Conversely, the bearish counterpoint is centered on the leveraged balance sheet and valuation risk. With a current ratio of 0.53x and a debt-to-equity ratio of -3.93x, the company has limited room for operational error. If global consumer discretionary spending declines, the high debt load could pressure net margins and restrict capital return programs.
Bull and bear case
Fundamental support
- Five-year revenue CAGR of 22.16% and five-year EPS CAGR of 16.38% support the business case.
- Net margin of 9.62% and ROIC of 18.61% are the quality checks behind the thesis.
Fundamental pressure
- Free-cash-flow CAGR of 87.84% can weaken the read if it falls away from EPS growth.
- Debt-to-equity of -3.93x and current ratio of 0.53x are the balance-sheet checks that can change the view.
Analytical Conclusions and Future Monitoring
In conclusion, the company exhibits strong operational growth, high capital efficiency, and robust cash flow generation, which are offset by a highly leveraged balance sheet and a premium valuation. This fundamental checkup remains valid based on the current financial snapshot, but the outlook would require revision if short-term liquidity worsens or if free cash flow growth falls behind earnings growth.
FAQ
What is the fundamental read on MAR?
Marriott International, Inc. is judged through revenue growth of 22.16%, EPS growth of 16.38%, free-cash-flow growth of 87.84%, net margin of 9.62%, and ROIC of 18.61%.
Which MAR fundamental metric matters most?
No single metric carries the article. The checkup requires growth, cash conversion, profitability quality, balance-sheet flexibility, and valuation to be read together.
When should this MAR checkup refresh?
Its figures are as of August 28, 2026, the note's dated snapshot; a note whose figures stop verifying against reported data is corrected or unpublished.
What would change our mind
- Revenue growth moving away from the current five-year CAGR of 22.16%.
- Free-cash-flow growth drifting away from five-year EPS CAGR of 16.38%.
- ROIC or balance-sheet flexibility weakening from ROIC of 18.61% and debt-to-equity of -3.93x.
The bottom line
Marriott International, Inc. fundamental research note from TGMCharts Research, grounded in a dated fundamentals snapshot, chart exhibits, and linked source facts.
Read next: MAR fundamentalsContinue with Marriott International, Inc.'s full stock page.How we checked this researchShowHide
Data snapshot · By TGMCharts Research.
Every number in this note comes from data we compute and store ourselves from the company's reported figures, plus verbatim excerpts from its SEC filings. When a value isn't available we say so — we never fill gaps with estimates.
Latest filing excerpt
10-Q · filed 2026-08-03 · period 2026-06-30 · SEC EDGAR source
- “Business Trends In the 2026 second quarter, worldwide RevPAR increased 3.4 percent, primarily driven by ADR growth of 3.5 percent.”
- “In the 2026 first half, worldwide RevPAR increased 3.8 percent, primarily driven by ADR growth of 3.3 percent.”
- “In our International regions, RevPAR decreased 0.5 percent in the 2026 second quarter and grew 2.0 percent in the 2026 first half.”
- “General and administrative expenses increased in the 2026 first half primarily due to higher compensation costs ($26 million).”
Source pages
Exhibit sources
Research trail
Every number, checked
Every numeric or dated claim in this note was checked against our stored company data before publishing — each figure below links to the page it comes from.