CHOICE HOTELS INTL INC (CHH) Stock Fundamental Analysis

NYSE:CHH • US1699051066

110.04 USD
+1.03 (+0.94%)
At close: Feb 13, 2026
110.04 USD
0 (0%)
After Hours: 2/13/2026, 8:04:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

6

Overall CHH gets a fundamental rating of 6 out of 10. We evaluated CHH against 131 industry peers in the Hotels, Restaurants & Leisure industry. While CHH has a great profitability rating, there are some minor concerns on its financial health. CHH is not valued too expensively and it also shows a decent growth rate.


Dividend Valuation Growth Profitability Health

9

1. Profitability

1.1 Basic Checks

  • CHH had positive earnings in the past year.
  • CHH had a positive operating cash flow in the past year.
  • CHH had positive earnings in each of the past 5 years.
  • CHH had a positive operating cash flow in each of the past 5 years.
CHH Yearly Net Income VS EBIT VS OCF VS FCFCHH Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M

1.2 Ratios

  • CHH has a Return On Assets of 13.08%. This is amongst the best in the industry. CHH outperforms 89.31% of its industry peers.
  • CHH's Return On Equity of 253.86% is amongst the best of the industry. CHH outperforms 100.00% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 14.62%, CHH belongs to the top of the industry, outperforming 83.21% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for CHH is significantly above the industry average of 10.42%.
  • The last Return On Invested Capital (14.62%) for CHH is well below the 3 year average (21.54%), which needs to be investigated, but indicates that CHH had better years and this may not be a problem.
Industry RankSector Rank
ROA 13.08%
ROE 253.86%
ROIC 14.62%
ROA(3y)12.74%
ROA(5y)11.57%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)21.54%
ROIC(5y)19.3%
CHH Yearly ROA, ROE, ROICCHH Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500 -500 -1K

1.3 Margins

  • Looking at the Profit Margin, with a value of 23.82%, CHH belongs to the top of the industry, outperforming 96.18% of the companies in the same industry.
  • In the last couple of years the Profit Margin of CHH has remained more or less at the same level.
  • CHH's Operating Margin of 29.29% is amongst the best of the industry. CHH outperforms 95.42% of its industry peers.
  • CHH's Operating Margin has been stable in the last couple of years.
  • With a decent Gross Margin value of 56.97%, CHH is doing good in the industry, outperforming 69.47% of the companies in the same industry.
  • CHH's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 29.29%
PM (TTM) 23.82%
GM 56.97%
OM growth 3Y-8.9%
OM growth 5Y0.28%
PM growth 3Y-11.25%
PM growth 5Y-1.09%
GM growth 3Y-3.67%
GM growth 5Y1.67%
CHH Yearly Profit, Operating, Gross MarginsCHH Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30 40 50

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4

2. Health

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), CHH is creating value.
  • The number of shares outstanding for CHH has been reduced compared to 1 year ago.
  • The number of shares outstanding for CHH has been reduced compared to 5 years ago.
  • CHH has a worse debt/assets ratio than last year.
CHH Yearly Shares OutstandingCHH Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 10M 20M 30M 40M 50M
CHH Yearly Total Debt VS Total AssetsCHH Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B 2.5B

2.2 Solvency

  • CHH has an Altman-Z score of 3.26. This indicates that CHH is financially healthy and has little risk of bankruptcy at the moment.
  • CHH has a Altman-Z score of 3.26. This is amongst the best in the industry. CHH outperforms 82.44% of its industry peers.
  • CHH has a debt to FCF ratio of 15.16. This is a negative value and a sign of low solvency as CHH would need 15.16 years to pay back of all of its debts.
  • CHH has a Debt to FCF ratio (15.16) which is in line with its industry peers.
  • A Debt/Equity ratio of 12.81 is on the high side and indicates that CHH has dependencies on debt financing.
  • CHH's Debt to Equity ratio of 12.81 is on the low side compared to the rest of the industry. CHH is outperformed by 68.70% of its industry peers.
Industry RankSector Rank
Debt/Equity 12.81
Debt/FCF 15.16
Altman-Z 3.26
ROIC/WACC1.99
WACC7.36%
CHH Yearly LT Debt VS Equity VS FCFCHH Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M 1B 1.5B

2.3 Liquidity

  • A Current Ratio of 0.96 indicates that CHH may have some problems paying its short term obligations.
  • Looking at the Current ratio, with a value of 0.96, CHH is in line with its industry, outperforming 49.62% of the companies in the same industry.
  • CHH has a Quick Ratio of 0.96. This is a bad value and indicates that CHH is not financially healthy enough and could expect problems in meeting its short term obligations.
  • The Quick ratio of CHH (0.96) is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 0.96
Quick Ratio 0.96
CHH Yearly Current Assets VS Current LiabilitesCHH Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. Growth

3.1 Past

  • The Earnings Per Share has been growing slightly by 1.77% over the past year.
  • The Earnings Per Share has been growing by 9.82% on average over the past years. This is quite good.
  • Looking at the last year, CHH shows a small growth in Revenue. The Revenue has grown by 2.76% in the last year.
  • Measured over the past years, CHH shows a small growth in Revenue. The Revenue has been growing by 7.29% on average per year.
EPS 1Y (TTM)1.77%
EPS 3Y17.16%
EPS 5Y9.82%
EPS Q2Q%-5.83%
Revenue 1Y (TTM)2.76%
Revenue growth 3Y14.02%
Revenue growth 5Y7.29%
Sales Q2Q%4.53%

3.2 Future

  • CHH is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.87% yearly.
  • CHH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.36% yearly.
EPS Next Y1.62%
EPS Next 2Y2.14%
EPS Next 3Y3.54%
EPS Next 5Y7.87%
Revenue Next Year0.57%
Revenue Next 2Y1.38%
Revenue Next 3Y2.08%
Revenue Next 5Y4.36%

3.3 Evolution

  • The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
CHH Yearly Revenue VS EstimatesCHH Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 500M 1B 1.5B 2B
CHH Yearly EPS VS EstimatesCHH Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 5 10 15

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4

4. Valuation

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 15.92 indicates a correct valuation of CHH.
  • CHH's Price/Earnings ratio is a bit cheaper when compared to the industry. CHH is cheaper than 76.34% of the companies in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 27.97, CHH is valued a bit cheaper.
  • With a Price/Forward Earnings ratio of 15.29, CHH is valued correctly.
  • 73.28% of the companies in the same industry are more expensive than CHH, based on the Price/Forward Earnings ratio.
  • The average S&P500 Price/Forward Earnings ratio is at 27.96. CHH is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 15.92
Fwd PE 15.29
CHH Price Earnings VS Forward Price EarningsCHH Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • CHH's Enterprise Value to EBITDA ratio is in line with the industry average.
  • CHH's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 40.24
EV/EBITDA 12.73
CHH Per share dataCHH EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 -20

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates CHH does not grow enough to justify the current Price/Earnings ratio.
  • The excellent profitability rating of CHH may justify a higher PE ratio.
PEG (NY)9.86
PEG (5Y)1.62
EPS Next 2Y2.14%
EPS Next 3Y3.54%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

5

5. Dividend

5.1 Amount

  • With a Yearly Dividend Yield of 1.05%, CHH has a reasonable but not impressive dividend return.
  • Compared to an average industry Dividend Yield of 1.27, CHH pays a bit more dividend than its industry peers.
  • Compared to an average S&P500 Dividend Yield of 1.84, CHH's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 1.05%

5.2 History

  • The dividend of CHH has a limited annual growth rate of 5.92%.
  • CHH has paid a dividend for at least 10 years, which is a reliable track record.
  • The dividend of CHH decreased recently.
Dividend Growth(5Y)5.92%
Div Incr Years0
Div Non Decr Years1
CHH Yearly Dividends per shareCHH Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.2 0.4 0.6 0.8 1

5.3 Sustainability

  • 13.99% of the earnings are spent on dividend by CHH. This is a low number and sustainable payout ratio.
  • The dividend of CHH is growing, but earnings are growing more, so the dividend growth is sustainable.
DP13.99%
EPS Next 2Y2.14%
EPS Next 3Y3.54%
CHH Yearly Income VS Free CF VS DividendCHH Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M
CHH Dividend Payout.CHH Dividend Payout, showing the Payout Ratio.CHH Dividend Payout.PayoutRetained Earnings

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CHOICE HOTELS INTL INC

NYSE:CHH (2/13/2026, 8:04:00 PM)

After market: 110.04 0 (0%)

110.04

+1.03 (+0.94%)

Chartmill FA Rating
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)11-05
Earnings (Next)02-19
Inst Owners67.98%
Inst Owner Change-0.36%
Ins Owners15.44%
Ins Owner Change-0.5%
Market Cap5.09B
Revenue(TTM)1.60B
Net Income(TTM)380.21M
Analysts53.04
Price Target110.33 (0.26%)
Short Float %23.07%
Short Ratio7.9
Dividend
Industry RankSector Rank
Dividend Yield 1.05%
Yearly Dividend1.15
Dividend Growth(5Y)5.92%
DP13.99%
Div Incr Years0
Div Non Decr Years1
Ex-Date01-02
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-2.38%
Min EPS beat(2)-4.72%
Max EPS beat(2)-0.04%
EPS beat(4)1
Avg EPS beat(4)-1.1%
Min EPS beat(4)-4.72%
Max EPS beat(4)3.34%
EPS beat(8)4
Avg EPS beat(8)3.23%
EPS beat(12)7
Avg EPS beat(12)4.5%
EPS beat(16)9
Avg EPS beat(16)4.66%
Revenue beat(2)1
Avg Revenue beat(2)0.8%
Min Revenue beat(2)-2.3%
Max Revenue beat(2)3.89%
Revenue beat(4)1
Avg Revenue beat(4)-12.24%
Min Revenue beat(4)-49.91%
Max Revenue beat(4)3.89%
Revenue beat(8)1
Avg Revenue beat(8)-7.67%
Revenue beat(12)4
Avg Revenue beat(12)-4.61%
Revenue beat(16)8
Avg Revenue beat(16)3.34%
PT rev (1m)2.86%
PT rev (3m)-7.79%
EPS NQ rev (1m)3.83%
EPS NQ rev (3m)1.11%
EPS NY rev (1m)0.41%
EPS NY rev (3m)-1.04%
Revenue NQ rev (1m)-1.05%
Revenue NQ rev (3m)-2.08%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)1.01%
Valuation
Industry RankSector Rank
PE 15.92
Fwd PE 15.29
P/S 3.19
P/FCF 40.24
P/OCF 19.03
P/B 33.99
P/tB N/A
EV/EBITDA 12.73
EPS(TTM)6.91
EY6.28%
EPS(NY)7.2
Fwd EY6.54%
FCF(TTM)2.73
FCFY2.49%
OCF(TTM)5.78
OCFY5.26%
SpS34.5
BVpS3.24
TBVpS-25.94
PEG (NY)9.86
PEG (5Y)1.62
Graham Number22.43
Profitability
Industry RankSector Rank
ROA 13.08%
ROE 253.86%
ROCE 19.17%
ROIC 14.62%
ROICexc 14.94%
ROICexgc 34.39%
OM 29.29%
PM (TTM) 23.82%
GM 56.97%
FCFM 7.93%
ROA(3y)12.74%
ROA(5y)11.57%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)21.54%
ROIC(5y)19.3%
ROICexc(3y)22%
ROICexc(5y)22.8%
ROICexgc(3y)62.24%
ROICexgc(5y)57.93%
ROCE(3y)28.26%
ROCE(5y)25.31%
ROICexgc growth 3Y-22.85%
ROICexgc growth 5Y-2.05%
ROICexc growth 3Y-22.26%
ROICexc growth 5Y-6.09%
OM growth 3Y-8.9%
OM growth 5Y0.28%
PM growth 3Y-11.25%
PM growth 5Y-1.09%
GM growth 3Y-3.67%
GM growth 5Y1.67%
F-Score7
Asset Turnover0.55
Health
Industry RankSector Rank
Debt/Equity 12.81
Debt/FCF 15.16
Debt/EBITDA 3.53
Cap/Depr 187.56%
Cap/Sales 8.84%
Interest Coverage 5.36
Cash Conversion 49.3%
Profit Quality 33.28%
Current Ratio 0.96
Quick Ratio 0.96
Altman-Z 3.26
F-Score7
WACC7.36%
ROIC/WACC1.99
Cap/Depr(3y)224.18%
Cap/Depr(5y)224.46%
Cap/Sales(3y)7.9%
Cap/Sales(5y)7.1%
Profit Quality(3y)70.03%
Profit Quality(5y)83.3%
High Growth Momentum
Growth
EPS 1Y (TTM)1.77%
EPS 3Y17.16%
EPS 5Y9.82%
EPS Q2Q%-5.83%
EPS Next Y1.62%
EPS Next 2Y2.14%
EPS Next 3Y3.54%
EPS Next 5Y7.87%
Revenue 1Y (TTM)2.76%
Revenue growth 3Y14.02%
Revenue growth 5Y7.29%
Sales Q2Q%4.53%
Revenue Next Year0.57%
Revenue Next 2Y1.38%
Revenue Next 3Y2.08%
Revenue Next 5Y4.36%
EBIT growth 1Y-4.09%
EBIT growth 3Y3.87%
EBIT growth 5Y7.59%
EBIT Next Year32.37%
EBIT Next 3Y11.35%
EBIT Next 5Y9.51%
FCF growth 1Y-47.61%
FCF growth 3Y-17.21%
FCF growth 5Y35.78%
OCF growth 1Y-23.33%
OCF growth 3Y-5.93%
OCF growth 5Y3.37%

CHOICE HOTELS INTL INC / CHH FAQ

Can you provide the ChartMill fundamental rating for CHOICE HOTELS INTL INC?

ChartMill assigns a fundamental rating of 6 / 10 to CHH.


Can you provide the valuation status for CHOICE HOTELS INTL INC?

ChartMill assigns a valuation rating of 4 / 10 to CHOICE HOTELS INTL INC (CHH). This can be considered as Fairly Valued.


Can you provide the profitability details for CHOICE HOTELS INTL INC?

CHOICE HOTELS INTL INC (CHH) has a profitability rating of 9 / 10.


Can you provide the expected EPS growth for CHH stock?

The Earnings per Share (EPS) of CHOICE HOTELS INTL INC (CHH) is expected to grow by 1.62% in the next year.


Is the dividend of CHOICE HOTELS INTL INC sustainable?

The dividend rating of CHOICE HOTELS INTL INC (CHH) is 5 / 10 and the dividend payout ratio is 13.99%.