Marriott International (MAR) Scores High in Multi-Factor Model

Marriott International (MAR) achieves a 75% rating in the Multi-Factor Investor model, suggesting robust fundamentals. However, it has failed to meet some key criteria, indicating possible concerns for professional investors looking at short-term performance.

Date: 17-04-2025

AI Rating: 6

Overview of Marriott International Inc.

Marriott International Inc. (MAR) is currently evaluated based on the Multi-Factor Investor model attributed to Pim van Vliet. The stock has attained a rating of 75% which implies it is generally viewed as a stable investment. This score reflects favorable underlying fundamentals and valuation attributes. However, given that a score of at least 80% typically indicates active interest and above 90% indicates strong buy signals, the current 75% score may raise red flags for discerning investors.

Market Cap and Volatility

The stock passes the market cap requirement, indicating it is a large-cap company. Furthermore, low standard deviation reflects its status as a low volatility investment, which is often attractive for risk-averse investors. This characteristic aligns with van Vliet’s approach that advocates for lower risk methodologies while still aiming for good returns.

Momentum and Return Metrics

While MAR shows neutral ratings in both twelve minus one momentum and net payout yield, these factors may detract from its appeal as a growth stock in the hospitality industry. The neutral indications in these areas suggest that the stock is neither gaining significant momentum nor providing attractive returns from capital distributions, which could deter potential buyers focused on growth trajectories or returns.

Overall Assessment

The fact that the final rank for MAR is marked as a fail suggests that while the company has certain positive attributes, there may be underlying issues worth noting. Investors looking for immediate returns may reconsider their position given the overall lukewarm rating amongst the factors taken into account. While the company showcases some stability and low volatility, the strict performance metrics may indicate that other stocks in the same industry could yield better returns. Thus, on a short-term horizon of investment (1 to 3 months), caution is advised.

Stocks: MAR