CHOICE HOTELS INTL INC (CHH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CHH - US1699051066 - Common Stock
89.005 USD
-2.66 (-2.9%)
Overall CHH gets a fundamental rating of 6 out of 10. We evaluated CHH against 132 industry peers in the Hotels, Restaurants & Leisure industry. CHH scores excellent on profitability, but there are some minor concerns on its financial health. CHH has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year CHH was profitable.
In the past year CHH had a positive cash flow from operations.
In the past 5 years CHH has always been profitable.
CHH had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CHH's Return On Assets of 13.08% is amongst the best of the industry. CHH outperforms 89.39% of its industry peers.
With an excellent Return On Equity value of 253.86%, CHH belongs to the best of the industry, outperforming 99.24% of the companies in the same industry.
CHH has a Return On Invested Capital of 14.62%. This is amongst the best in the industry. CHH outperforms 83.33% of its industry peers.
CHH had an Average Return On Invested Capital over the past 3 years of 21.54%. This 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 Rank | Sector 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%
1.3 Margins
The Profit Margin of CHH (23.82%) is better than 96.21% of its industry peers.
CHH's Profit Margin has been stable in the last couple of years.
Looking at the Operating Margin, with a value of 29.29%, CHH belongs to the top of the industry, outperforming 95.45% of the companies in the same industry.
In the last couple of years the Operating Margin of CHH has remained more or less at the same level.
CHH's Gross Margin of 56.97% is fine compared to the rest of the industry. CHH outperforms 69.70% of its industry peers.
CHH's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), CHH is creating value.
Compared to 1 year ago, CHH has less shares outstanding
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.
2.2 Solvency
CHH has an Altman-Z score of 3.09. This indicates that CHH is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.09, CHH is in the better half of the industry, outperforming 75.76% of the companies in the same industry.
The Debt to FCF ratio of CHH is 15.16, which is on the high side as it means it would take CHH, 15.16 years of fcf income to pay off 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.
With a Debt to Equity ratio value of 12.81, CHH is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 12.81 | ||
| Debt/FCF | 15.16 | ||
| Altman-Z | 3.09 |
ROIC/WACC1.94
WACC7.54%
2.3 Liquidity
A Current Ratio of 0.96 indicates that CHH may have some problems paying its short term obligations.
CHH's Current ratio of 0.96 is in line compared to the rest of the industry. CHH outperforms 51.52% of its industry peers.
A Quick Ratio of 0.96 indicates that CHH may have some problems paying its short term obligations.
With a Quick ratio value of 0.96, CHH perfoms like the industry average, outperforming 53.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.96 |
3. Growth
3.1 Past
CHH shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.77%.
CHH shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.82% yearly.
CHH shows a small growth in Revenue. In the last year, the Revenue has grown by 2.76%.
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
The Earnings Per Share is expected to grow by 7.87% on average over the next years.
CHH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.36% yearly.
EPS Next Y2.68%
EPS Next 2Y3.38%
EPS Next 3Y3.83%
EPS Next 5Y7.87%
Revenue Next Year-0.44%
Revenue Next 2Y1.59%
Revenue Next 3Y2.42%
Revenue Next 5Y4.36%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 12.88, CHH is valued correctly.
Based on the Price/Earnings ratio, CHH is valued cheaper than 80.30% of the companies in the same industry.
CHH's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.37.
CHH is valuated correctly with a Price/Forward Earnings ratio of 12.07.
Based on the Price/Forward Earnings ratio, CHH is valued a bit cheaper than 79.55% of the companies in the same industry.
CHH is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.20, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.88 | ||
| Fwd PE | 12.07 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as CHH.
The rest of the industry has a similar Price/Free Cash Flow ratio as CHH.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.55 | ||
| EV/EBITDA | 11.25 |
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)4.8
PEG (5Y)1.31
EPS Next 2Y3.38%
EPS Next 3Y3.83%
5. Dividend
5.1 Amount
CHH has a Yearly Dividend Yield of 1.26%.
In the last 3 months the price of CHH has falen by -21.54%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 7.72, CHH pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.26, CHH pays less dividend than the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.26% |
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.
CHH has decreased its dividend recently.
Dividend Growth(5Y)5.92%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
CHH pays out 13.99% of its income as dividend. This is a sustainable payout ratio.
The dividend of CHH is growing, but earnings are growing more, so the dividend growth is sustainable.
DP13.99%
EPS Next 2Y3.38%
EPS Next 3Y3.83%
NYSE:CHH (12/4/2025, 1:33:46 PM)
89.005
-2.66 (-2.9%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners71.42%
Inst Owner Change-6.82%
Ins Owners15.44%
Ins Owner Change-0.37%
Market Cap4.12B
Revenue(TTM)1.60B
Net Income(TTM)380.21M
Analysts55.45
Price Target117.18 (31.66%)
Short Float %21.26%
Short Ratio10.04
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.26% |
Yearly Dividend1.15
Dividend Growth(5Y)5.92%
DP13.99%
Div Incr Years0
Div Non Decr Years1
Ex-Date
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)-11.06%
PT rev (3m)-13.82%
EPS NQ rev (1m)-3.37%
EPS NQ rev (3m)-5.77%
EPS NY rev (1m)0.15%
EPS NY rev (3m)-0.94%
Revenue NQ rev (1m)-1.55%
Revenue NQ rev (3m)-0.92%
Revenue NY rev (1m)0.13%
Revenue NY rev (3m)-0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.88 | ||
| Fwd PE | 12.07 | ||
| P/S | 2.58 | ||
| P/FCF | 32.55 | ||
| P/OCF | 15.39 | ||
| P/B | 27.5 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.25 |
EPS(TTM)6.91
EY7.76%
EPS(NY)7.37
Fwd EY8.29%
FCF(TTM)2.73
FCFY3.07%
OCF(TTM)5.78
OCFY6.5%
SpS34.5
BVpS3.24
TBVpS-25.94
PEG (NY)4.8
PEG (5Y)1.31
Graham Number22.43
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 3.09 |
F-Score7
WACC7.54%
ROIC/WACC1.94
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 Y2.68%
EPS Next 2Y3.38%
EPS Next 3Y3.83%
EPS Next 5Y7.87%
Revenue 1Y (TTM)2.76%
Revenue growth 3Y14.02%
Revenue growth 5Y7.29%
Sales Q2Q%4.53%
Revenue Next Year-0.44%
Revenue Next 2Y1.59%
Revenue Next 3Y2.42%
Revenue Next 5Y4.36%
EBIT growth 1Y-4.09%
EBIT growth 3Y3.87%
EBIT growth 5Y7.59%
EBIT Next Year29.78%
EBIT Next 3Y11.46%
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.
What is the valuation status for CHH stock?
ChartMill assigns a valuation rating of 5 / 10 to CHOICE HOTELS INTL INC (CHH). This can be considered as Fairly Valued.
What is the profitability of CHH stock?
CHOICE HOTELS INTL INC (CHH) has a profitability rating of 9 / 10.
What is the valuation of CHOICE HOTELS INTL INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for CHOICE HOTELS INTL INC (CHH) is 12.88 and the Price/Book (PB) ratio is 27.5.
What is the earnings growth outlook for CHOICE HOTELS INTL INC?
The Earnings per Share (EPS) of CHOICE HOTELS INTL INC (CHH) is expected to grow by 2.68% in the next year.