CHOICE HOTELS INTL INC (CHH) Stock Fundamental Analysis
NYSE:CHH - US1699051066 - Common Stock
120.26 USD
+0.91 (+0.76%)
Overall CHH gets a fundamental rating of 5 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.
1. Profitability
1.1 Basic Checks
In the past year CHH was profitable.
CHH had a positive operating cash flow in the past year.
CHH had positive earnings in each of the past 5 years.
In the past 5 years CHH always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 11.49%, CHH belongs to the top of the industry, outperforming 88.55% of the companies in the same industry.
CHH has a Return On Invested Capital of 16.45%. This is amongst the best in the industry. CHH outperforms 84.73% 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 15.87%.
The last Return On Invested Capital (16.45%) 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 | 11.49% | ||
| ROE | N/A | ||
| ROIC | 16.45% |
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 (19.42%) is better than 93.13% of its industry peers.
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 (30.28%) than 96.18% of its industry peers.
CHH's Operating Margin has been stable in the last couple of years.
CHH's Gross Margin of 55.90% is fine compared to the rest of the industry. CHH outperforms 68.70% of its industry peers.
In the last couple of years the Gross Margin of CHH has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 30.28% | ||
| PM (TTM) | 19.42% | ||
| GM | 55.9% |
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
Compared to 5 years ago, CHH has less shares outstanding
CHH has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.50 indicates that CHH is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.50, CHH is in the better half of the industry, outperforming 77.10% of the companies in the same industry.
The Debt to FCF ratio of CHH is 11.36, which is on the high side as it means it would take CHH, 11.36 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 11.36, CHH perfoms like the industry average, outperforming 57.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 11.36 | ||
| Altman-Z | 3.5 |
ROIC/WACC1.92
WACC8.55%
2.3 Liquidity
A Current Ratio of 0.89 indicates that CHH may have some problems paying its short term obligations.
The Current ratio of CHH (0.89) is comparable to the rest of the industry.
CHH has a Quick Ratio of 0.89. 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 (0.89) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.89 |
3. Growth
3.1 Past
CHH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.34%, which is quite good.
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 1.67%.
CHH shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.29% yearly.
EPS 1Y (TTM)10.34%
EPS 3Y17.16%
EPS 5Y9.82%
EPS Q2Q%4.35%
Revenue 1Y (TTM)1.67%
Revenue growth 3Y14.02%
Revenue growth 5Y7.29%
Sales Q2Q%-2%
3.2 Future
The Earnings Per Share is expected to grow by 6.73% on average over the next years.
The Revenue is expected to grow by 4.10% on average over the next years.
EPS Next Y3.65%
EPS Next 2Y4.34%
EPS Next 3Y4.43%
EPS Next 5Y6.73%
Revenue Next Year-0.38%
Revenue Next 2Y1.68%
Revenue Next 3Y2.64%
Revenue Next 5Y4.1%
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 decreasing.
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 17.08, the valuation of CHH can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of CHH indicates a somewhat cheap valuation: CHH is cheaper than 77.86% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.08, CHH is valued a bit cheaper.
The Price/Forward Earnings ratio is 16.01, which indicates a correct valuation of CHH.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CHH indicates a somewhat cheap valuation: CHH is cheaper than 70.99% of the companies listed in the same industry.
CHH's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.67.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.08 | ||
| Fwd PE | 16.01 |
4.2 Price Multiples
CHH's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, CHH is valued a bit cheaper than 60.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.27 | ||
| EV/EBITDA | 13.4 |
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)4.68
PEG (5Y)1.74
EPS Next 2Y4.34%
EPS Next 3Y4.43%
5. Dividend
5.1 Amount
CHH has a yearly dividend return of 0.96%, which is pretty low.
CHH's Dividend Yield is a higher than the industry average which is at 4.19.
With a Dividend Yield of 0.96, CHH pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.96% |
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
17.47% of the earnings are spent on dividend by CHH. This is a low number and sustainable payout ratio.
The dividend of CHH is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP17.47%
EPS Next 2Y4.34%
EPS Next 3Y4.43%
NYSE:CHH (8/27/2025, 1:40:53 PM)
120.26
+0.91 (+0.76%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners69.61%
Inst Owner Change3.09%
Ins Owners15.4%
Ins Owner Change2.17%
Market Cap5.56B
Analysts68.42
Price Target135.96 (13.06%)
Short Float %21.59%
Short Ratio13.2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.96% |
Yearly Dividend1.15
Dividend Growth(5Y)5.92%
DP17.47%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1.51%
Min EPS beat(2)-2.98%
Max EPS beat(2)-0.04%
EPS beat(4)2
Avg EPS beat(4)3.89%
Min EPS beat(4)-2.98%
Max EPS beat(4)15.24%
EPS beat(8)4
Avg EPS beat(8)3.49%
EPS beat(12)7
Avg EPS beat(12)4.16%
EPS beat(16)10
Avg EPS beat(16)5.59%
Revenue beat(2)0
Avg Revenue beat(2)-1.46%
Min Revenue beat(2)-2.3%
Max Revenue beat(2)-0.63%
Revenue beat(4)0
Avg Revenue beat(4)-13.79%
Min Revenue beat(4)-49.91%
Max Revenue beat(4)-0.63%
Revenue beat(8)0
Avg Revenue beat(8)-8.42%
Revenue beat(12)4
Avg Revenue beat(12)-4.48%
Revenue beat(16)8
Avg Revenue beat(16)3.28%
PT rev (1m)-0.8%
PT rev (3m)-2.93%
EPS NQ rev (1m)0.66%
EPS NQ rev (3m)2.84%
EPS NY rev (1m)1.14%
EPS NY rev (3m)0.3%
Revenue NQ rev (1m)-1.98%
Revenue NQ rev (3m)-5.39%
Revenue NY rev (1m)-1.55%
Revenue NY rev (3m)-0.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.08 | ||
| Fwd PE | 16.01 | ||
| P/S | 3.53 | ||
| P/FCF | 33.27 | ||
| P/OCF | 17.29 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.4 |
EPS(TTM)7.04
EY5.85%
EPS(NY)7.51
Fwd EY6.25%
FCF(TTM)3.61
FCFY3.01%
OCF(TTM)6.96
OCFY5.78%
SpS34.08
BVpS-0.57
TBVpS-24.4
PEG (NY)4.68
PEG (5Y)1.74
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.49% | ||
| ROE | N/A | ||
| ROCE | 21.58% | ||
| ROIC | 16.45% | ||
| ROICexc | 16.9% | ||
| ROICexgc | 34.61% | ||
| OM | 30.28% | ||
| PM (TTM) | 19.42% | ||
| GM | 55.9% | ||
| FCFM | 10.61% |
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%
ROICexcg growth 3Y-22.85%
ROICexcg 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 Turnover0.59
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 11.36 | ||
| Debt/EBITDA | 3.46 | ||
| Cap/Depr | 215.05% | ||
| Cap/Sales | 9.8% | ||
| Interest Coverage | 6.9 | ||
| Cash Conversion | 58.59% | ||
| Profit Quality | 54.61% | ||
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.89 | ||
| Altman-Z | 3.5 |
F-Score7
WACC8.55%
ROIC/WACC1.92
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)10.34%
EPS 3Y17.16%
EPS 5Y9.82%
EPS Q2Q%4.35%
EPS Next Y3.65%
EPS Next 2Y4.34%
EPS Next 3Y4.43%
EPS Next 5Y6.73%
Revenue 1Y (TTM)1.67%
Revenue growth 3Y14.02%
Revenue growth 5Y7.29%
Sales Q2Q%-2%
Revenue Next Year-0.38%
Revenue Next 2Y1.68%
Revenue Next 3Y2.64%
Revenue Next 5Y4.1%
EBIT growth 1Y-0.47%
EBIT growth 3Y3.87%
EBIT growth 5Y7.59%
EBIT Next Year29.33%
EBIT Next 3Y11.25%
EBIT Next 5Y8.05%
FCF growth 1Y-31.59%
FCF growth 3Y-17.21%
FCF growth 5Y35.78%
OCF growth 1Y-3.47%
OCF growth 3Y-5.93%
OCF growth 5Y3.37%