CHOICE HOTELS INTL INC (CHH) Fundamental Analysis & Valuation

NYSE:CHH • US1699051066

Current stock price

97.63 USD
-1.9 (-1.91%)
At close:
97.63 USD
0 (0%)
After Hours:

This CHH fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

9

1. CHH Profitability Analysis

1.1 Basic Checks

  • CHH had positive earnings in the past year.
  • In the past year CHH had a positive cash flow from operations.
  • In the past 5 years CHH has always been profitable.
  • In the past 5 years CHH always reported a positive cash flow from operatings.
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 2025 100M 200M 300M 400M

1.2 Ratios

  • Looking at the Return On Assets, with a value of 12.62%, CHH belongs to the top of the industry, outperforming 89.68% of the companies in the same industry.
  • With an excellent Return On Equity value of 203.16%, CHH belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
  • Looking at the Return On Invested Capital, with a value of 14.49%, CHH belongs to the top of the industry, outperforming 80.95% 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 10.56%.
  • The last Return On Invested Capital (14.49%) for CHH is well below the 3 year average (19.46%), which needs to be investigated, but indicates that CHH had better years and this may not be a problem.
Industry RankSector Rank
ROA 12.62%
ROE 203.16%
ROIC 14.49%
ROA(3y)11.71%
ROA(5y)13.15%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)19.46%
ROIC(5y)21.12%
CHH Yearly ROA, ROE, ROICCHH Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500 -500 -1K

1.3 Margins

  • With an excellent Profit Margin value of 23.06%, CHH belongs to the best of the industry, outperforming 96.03% of the companies in the same industry.
  • In the last couple of years the Profit Margin of CHH has grown nicely.
  • CHH's Operating Margin of 28.38% is amongst the best of the industry. CHH outperforms 95.24% of its industry peers.
  • In the last couple of years the Operating Margin of CHH has grown nicely.
  • The Gross Margin of CHH (58.46%) is better than 73.02% of its industry peers.
  • CHH's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 28.38%
PM (TTM) 23.06%
GM 58.46%
OM growth 3Y-6.53%
OM growth 5Y9.93%
PM growth 3Y-1.26%
PM growth 5Y18.93%
GM growth 3Y3.55%
GM growth 5Y6.7%
CHH Yearly Profit, Operating, Gross MarginsCHH Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30 40 50

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4

2. CHH Health Analysis

2.1 Basic Checks

  • CHH has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it 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.
  • CHH has a better debt/assets ratio than last year.
CHH Yearly Shares OutstandingCHH Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 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 2025 500M 1B 1.5B 2B 2.5B

2.2 Solvency

  • CHH has an Altman-Z score of 3.13. This indicates that CHH is financially healthy and has little risk of bankruptcy at the moment.
  • With an excellent Altman-Z score value of 3.13, CHH belongs to the best of the industry, outperforming 80.16% of the companies in the same industry.
  • The Debt to FCF ratio of CHH is 15.29, which is on the high side as it means it would take CHH, 15.29 years of fcf income to pay off all of its debts.
  • With a Debt to FCF ratio value of 15.29, CHH perfoms like the industry average, outperforming 47.62% of the companies in the same industry.
  • CHH has a Debt/Equity ratio of 10.52. This is a high value indicating a heavy dependency on external financing.
  • CHH has a Debt to Equity ratio of 10.52. This is in the lower half of the industry: CHH underperforms 72.22% of its industry peers.
Industry RankSector Rank
Debt/Equity 10.52
Debt/FCF 15.29
Altman-Z 3.13
ROIC/WACC1.92
WACC7.53%
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 2025 0 500M 1B 1.5B

2.3 Liquidity

  • CHH has a Current Ratio of 0.87. 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 (0.87) which is comparable to the rest of the industry.
  • A Quick Ratio of 0.87 indicates that CHH may have some problems paying its short term obligations.
  • CHH has a Quick ratio of 0.87. This is comparable to the rest of the industry: CHH outperforms 48.41% of its industry peers.
Industry RankSector Rank
Current Ratio 0.87
Quick Ratio 0.87
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 2025 200M 400M 600M 800M

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5

3. CHH Growth Analysis

3.1 Past

  • CHH shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.87%.
  • CHH shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 27.57% yearly.
  • The Revenue has been growing slightly by 0.75% in the past year.
  • The Revenue has been growing by 15.58% on average over the past years. This is quite good.
EPS 1Y (TTM)0.87%
EPS 3Y9.65%
EPS 5Y27.57%
EPS Q2Q%3.23%
Revenue 1Y (TTM)0.75%
Revenue growth 3Y5%
Revenue growth 5Y15.58%
Sales Q2Q%106.46%

3.2 Future

  • The Earnings Per Share is expected to grow by 10.20% on average over the next years. This is quite good.
  • The Revenue is expected to grow by 5.16% on average over the next years.
EPS Next Y2.42%
EPS Next 2Y6.48%
EPS Next 3Y6.97%
EPS Next 5Y10.2%
Revenue Next Year2.32%
Revenue Next 2Y1.4%
Revenue Next 3Y3.13%
Revenue Next 5Y5.16%

3.3 Evolution

  • Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
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. CHH Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 14.03, the valuation of CHH can be described as correct.
  • Based on the Price/Earnings ratio, CHH is valued a bit cheaper than the industry average as 79.37% of the companies are valued more expensively.
  • When comparing the Price/Earnings ratio of CHH to the average of the S&P500 Index (25.23), we can say CHH is valued slightly cheaper.
  • Based on the Price/Forward Earnings ratio of 13.70, 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 75.40% 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 (22.42), we can say CHH is valued slightly cheaper.
Industry RankSector Rank
PE 14.03
Fwd PE 13.7
CHH Price Earnings VS Forward Price EarningsCHH Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • CHH's Enterprise Value to EBITDA is on the same level as the industry average.
  • The rest of the industry has a similar Price/Free Cash Flow ratio as CHH.
Industry RankSector Rank
P/FCF 36
EV/EBITDA 11.93
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)5.81
PEG (5Y)0.51
EPS Next 2Y6.48%
EPS Next 3Y6.97%

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

5

5. CHH Dividend Analysis

5.1 Amount

  • CHH has a Yearly Dividend Yield of 1.16%. Purely for dividend investing, there may be better candidates out there.
  • CHH's Dividend Yield is a higher than the industry average which is at 1.09.
  • CHH's Dividend Yield is slightly below the S&P500 average, which is at 1.89.
Industry RankSector Rank
Dividend Yield 1.16%

5.2 History

  • On average, the dividend of CHH grows each year by 20.41%, which is quite nice.
  • CHH has been paying a dividend for at least 10 years, so it has a reliable track record.
  • The dividend of CHH decreased recently.
Dividend Growth(5Y)20.41%
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

  • 14.52% 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 the earnings are growing slower. This means the dividend growth is not sustainable.
DP14.52%
EPS Next 2Y6.48%
EPS Next 3Y6.97%
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 2025 100M 200M 300M
CHH Dividend Payout.CHH Dividend Payout, showing the Payout Ratio.CHH Dividend Payout.PayoutRetained Earnings

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CHH Fundamentals: All Metrics, Ratios and Statistics

CHOICE HOTELS INTL INC

NYSE:CHH (3/20/2026, 8:04:00 PM)

After market: 97.63 0 (0%)

97.63

-1.9 (-1.91%)

Chartmill FA Rating
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)02-19
Earnings (Next)05-06
Inst Owners71.71%
Inst Owner Change5.12%
Ins Owners15.78%
Ins Owner Change4.07%
Market Cap4.49B
Revenue(TTM)1.60B
Net Income(TTM)368.18M
Analysts54.78
Price Target114.63 (17.41%)
Short Float %24.79%
Short Ratio8.94
Dividend
Industry RankSector Rank
Dividend Yield 1.16%
Yearly Dividend1.15
Dividend Growth(5Y)20.41%
DP14.52%
Div Incr Years0
Div Non Decr Years1
Ex-Date04-01
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.9%
Min EPS beat(2)-4.72%
Max EPS beat(2)2.92%
EPS beat(4)1
Avg EPS beat(4)-1.21%
Min EPS beat(4)-4.72%
Max EPS beat(4)2.92%
EPS beat(8)4
Avg EPS beat(8)2.85%
EPS beat(12)7
Avg EPS beat(12)3.22%
EPS beat(16)9
Avg EPS beat(16)3.76%
Revenue beat(2)2
Avg Revenue beat(2)3.54%
Min Revenue beat(2)3.18%
Max Revenue beat(2)3.89%
Revenue beat(4)2
Avg Revenue beat(4)1.04%
Min Revenue beat(4)-2.3%
Max Revenue beat(4)3.89%
Revenue beat(8)2
Avg Revenue beat(8)-6.75%
Revenue beat(12)4
Avg Revenue beat(12)-4.57%
Revenue beat(16)8
Avg Revenue beat(16)3.38%
PT rev (1m)3.9%
PT rev (3m)3.08%
EPS NQ rev (1m)-0.12%
EPS NQ rev (3m)2.87%
EPS NY rev (1m)-0.97%
EPS NY rev (3m)-1.09%
Revenue NQ rev (1m)-1%
Revenue NQ rev (3m)-0.86%
Revenue NY rev (1m)0.12%
Revenue NY rev (3m)0.12%
Valuation
Industry RankSector Rank
PE 14.03
Fwd PE 13.7
P/S 2.81
P/FCF 36
P/OCF 16.59
P/B 24.76
P/tB N/A
EV/EBITDA 11.93
EPS(TTM)6.96
EY7.13%
EPS(NY)7.13
Fwd EY7.3%
FCF(TTM)2.71
FCFY2.78%
OCF(TTM)5.88
OCFY6.03%
SpS34.74
BVpS3.94
TBVpS-26.26
PEG (NY)5.81
PEG (5Y)0.51
Graham Number24.85
Profitability
Industry RankSector Rank
ROA 12.62%
ROE 203.16%
ROCE 18.49%
ROIC 14.49%
ROICexc 14.76%
ROICexgc 34.89%
OM 28.38%
PM (TTM) 23.06%
GM 58.46%
FCFM 7.81%
ROA(3y)11.71%
ROA(5y)13.15%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)19.46%
ROIC(5y)21.12%
ROICexc(3y)19.83%
ROICexc(5y)24.43%
ROICexgc(3y)56.74%
ROICexgc(5y)63.14%
ROCE(3y)24.83%
ROCE(5y)26.96%
ROICexgc growth 3Y-14.89%
ROICexgc growth 5Y15.58%
ROICexc growth 3Y-13.9%
ROICexc growth 5Y8.59%
OM growth 3Y-6.53%
OM growth 5Y9.93%
PM growth 3Y-1.26%
PM growth 5Y18.93%
GM growth 3Y3.55%
GM growth 5Y6.7%
F-Score7
Asset Turnover0.55
Health
Industry RankSector Rank
Debt/Equity 10.52
Debt/FCF 15.29
Debt/EBITDA 3.58
Cap/Depr 183.92%
Cap/Sales 9.13%
Interest Coverage 5.02
Cash Conversion 50.8%
Profit Quality 33.86%
Current Ratio 0.87
Quick Ratio 0.87
Altman-Z 3.13
F-Score7
WACC7.53%
ROIC/WACC1.92
Cap/Depr(3y)181.98%
Cap/Depr(5y)234.12%
Cap/Sales(3y)8.66%
Cap/Sales(5y)8.02%
Profit Quality(3y)53.8%
Profit Quality(5y)70.04%
High Growth Momentum
Growth
EPS 1Y (TTM)0.87%
EPS 3Y9.65%
EPS 5Y27.57%
EPS Q2Q%3.23%
EPS Next Y2.42%
EPS Next 2Y6.48%
EPS Next 3Y6.97%
EPS Next 5Y10.2%
Revenue 1Y (TTM)0.75%
Revenue growth 3Y5%
Revenue growth 5Y15.58%
Sales Q2Q%106.46%
Revenue Next Year2.32%
Revenue Next 2Y1.4%
Revenue Next 3Y3.13%
Revenue Next 5Y5.16%
EBIT growth 1Y-9.14%
EBIT growth 3Y-1.86%
EBIT growth 5Y27.06%
EBIT Next Year33.35%
EBIT Next 3Y12.66%
EBIT Next 5Y10.68%
FCF growth 1Y-28.18%
FCF growth 3Y-22.97%
FCF growth 5Y10.67%
OCF growth 1Y-15.33%
OCF growth 3Y-9.68%
OCF growth 5Y19.69%

CHOICE HOTELS INTL INC / CHH Fundamental Analysis 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 2.42% 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 14.52%.