CHOICE HOTELS INTL INC (CHH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CHH - US1699051066 - Common Stock
108.18 USD
+2.68 (+2.54%)
108.18 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to CHH. CHH was compared to 133 industry peers in the Hotels, Restaurants & Leisure industry. CHH has an excellent profitability rating, but there are some minor concerns on its financial health. CHH has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
CHH had positive earnings in the past year.
In the past year CHH had a positive cash flow from operations.
Each year in the past 5 years CHH has been profitable.
In the past 5 years CHH always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 13.08%, CHH belongs to the best of the industry, outperforming 89.47% of the companies in the same industry.
CHH has a Return On Equity of 253.86%. This is amongst the best in the industry. CHH outperforms 99.25% of its industry peers.
The Return On Invested Capital of CHH (14.62%) is better than 83.46% 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 10.34%.
The 3 year average ROIC (21.54%) for CHH is well above the current ROIC(14.62%). The reason for the recent decline needs to be investigated.
| 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
Looking at the Profit Margin, with a value of 23.82%, CHH belongs to the top of the industry, outperforming 96.24% 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 has a better Operating Margin (29.29%) than 95.49% 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 69.17% of the companies in the same industry.
In the last couple of years the Gross Margin of CHH has grown nicely.
| 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so CHH is creating value.
CHH has less shares outstanding than it did 1 year ago.
CHH has less shares outstanding than it did 5 years ago.
The debt/assets ratio for CHH is higher compared to a year ago.
2.2 Solvency
CHH has an Altman-Z score of 3.25. This indicates that CHH is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.25, CHH is doing good in the industry, outperforming 78.95% of the companies in the same industry.
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's Debt to FCF ratio of 15.16 is in line compared to the rest of the industry. CHH outperforms 51.13% of its industry peers.
CHH has a Debt/Equity ratio of 12.81. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 12.81, CHH is not doing good in the industry: 67.67% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 12.81 | ||
| Debt/FCF | 15.16 | ||
| Altman-Z | 3.25 |
ROIC/WACC1.93
WACC7.58%
2.3 Liquidity
CHH has a Current 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.
CHH has a Current ratio (0.96) which is comparable to the rest of the 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.
CHH's Quick ratio of 0.96 is in line compared to the rest of the industry. CHH outperforms 53.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.96 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.77% over the past year.
Measured over the past years, CHH shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.82% on average per year.
The Revenue has been growing slightly by 2.76% in the past year.
The Revenue has been growing slightly by 7.29% on average over the past years.
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.
The Revenue is expected to grow by 4.36% on average over the next years.
EPS Next Y1.2%
EPS Next 2Y1.83%
EPS Next 3Y3.71%
EPS Next 5Y7.87%
Revenue Next Year0.63%
Revenue Next 2Y1.31%
Revenue Next 3Y2.18%
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.
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
CHH is valuated correctly with a Price/Earnings ratio of 15.66.
Based on the Price/Earnings ratio, CHH is valued cheaply inside the industry as 80.45% of the companies are valued more expensively.
CHH's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.19.
Based on the Price/Forward Earnings ratio of 15.12, the valuation of CHH can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CHH indicates a somewhat cheap valuation: CHH is cheaper than 77.44% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of CHH to the average of the S&P500 Index (23.92), we can say CHH is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.66 | ||
| Fwd PE | 15.12 |
4.2 Price Multiples
CHH's Enterprise Value to EBITDA ratio is in line with the industry average.
CHH's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.56 | ||
| EV/EBITDA | 12.66 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of CHH may justify a higher PE ratio.
PEG (NY)13.02
PEG (5Y)1.59
EPS Next 2Y1.83%
EPS Next 3Y3.71%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.09%, CHH has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 6.32, CHH pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.09, CHH pays less dividend than the S&P500 average, which is at 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.09% |
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
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 2Y1.83%
EPS Next 3Y3.71%
108.18
+2.68 (+2.54%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners67.98%
Inst Owner Change-0.08%
Ins Owners15.44%
Ins Owner Change-0.7%
Market Cap5.01B
Revenue(TTM)1.60B
Net Income(TTM)380.21M
Analysts53.04
Price Target107.26 (-0.85%)
Short Float %21.48%
Short Ratio8.36
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.09% |
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)-3.55%
PT rev (3m)-18.59%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.2%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)-2.35%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.7%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.95%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.66 | ||
| Fwd PE | 15.12 | ||
| P/S | 3.14 | ||
| P/FCF | 39.56 | ||
| P/OCF | 18.7 | ||
| P/B | 33.42 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.66 |
EPS(TTM)6.91
EY6.39%
EPS(NY)7.16
Fwd EY6.61%
FCF(TTM)2.73
FCFY2.53%
OCF(TTM)5.78
OCFY5.35%
SpS34.5
BVpS3.24
TBVpS-25.94
PEG (NY)13.02
PEG (5Y)1.59
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 | 3.25 |
F-Score7
WACC7.58%
ROIC/WACC1.93
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 Y1.2%
EPS Next 2Y1.83%
EPS Next 3Y3.71%
EPS Next 5Y7.87%
Revenue 1Y (TTM)2.76%
Revenue growth 3Y14.02%
Revenue growth 5Y7.29%
Sales Q2Q%4.53%
Revenue Next Year0.63%
Revenue Next 2Y1.31%
Revenue Next 3Y2.18%
Revenue Next 5Y4.36%
EBIT growth 1Y-4.09%
EBIT growth 3Y3.87%
EBIT growth 5Y7.59%
EBIT Next Year32.03%
EBIT Next 3Y11.66%
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 5 / 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 1.2% 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%.