CHOICE HOTELS INTL INC (CHH)
US1699051066 - Common Stock
Overall CHH gets a fundamental rating of 6 out of 10. We evaluated CHH against 135 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 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.
CHH had a positive operating cash flow in the past year.
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
CHH has a Return On Assets of 12.93%. This is amongst the best in the industry. CHH outperforms 89.55% of its industry peers.
Looking at the Return On Equity, with a value of 869.81%, CHH belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
CHH has a Return On Invested Capital of 29.64%. This is amongst the best in the industry. CHH outperforms 97.01% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CHH is significantly above the industry average of 10.18%.
The 3 year average ROIC (23.68%) for CHH is below the current ROIC(29.64%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.93% | ||
| ROE | 869.81% | ||
| ROIC | 29.64% |
ROA(3y)13.78%
ROA(5y)12.41%
ROE(3y)348.02%
ROE(5y)N/A
ROIC(3y)23.68%
ROIC(5y)20.58%
1.3 Margins
CHH has a better Profit Margin (16.50%) than 89.55% of its industry peers.
CHH's Profit Margin has declined in the last couple of years.
The Operating Margin of CHH (30.03%) is better than 94.78% of its industry peers.
CHH's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 49.34%, CHH is in line with its industry, outperforming 50.00% of the companies in the same industry.
CHH's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 30.03% | ||
| PM (TTM) | 16.5% | ||
| GM | 49.34% |
OM growth 3Y20.33%
OM growth 5Y-0.13%
PM growth 3Y19.78%
PM growth 5Y-4.22%
GM growth 3Y5.29%
GM growth 5Y0.26%
2. Health
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.
Compared to 1 year ago, CHH has less shares outstanding
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
An Altman-Z score of 3.76 indicates that CHH is not in any danger for bankruptcy at the moment.
The Altman-Z score of CHH (3.76) is better than 85.82% of its industry peers.
The Debt to FCF ratio of CHH is 8.80, which is on the high side as it means it would take CHH, 8.80 years of fcf income to pay off all of its debts.
CHH's Debt to FCF ratio of 8.80 is fine compared to the rest of the industry. CHH outperforms 63.43% of its industry peers.
A Debt/Equity ratio of 30.02 is on the high side and indicates that CHH has dependencies on debt financing.
CHH has a Debt to Equity ratio of 30.02. This is in the lower half of the industry: CHH underperforms 69.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 30.02 | ||
| Debt/FCF | 8.8 | ||
| Altman-Z | 3.76 |
ROIC/WACC3.51
WACC8.45%
2.3 Liquidity
A Current Ratio of 0.31 indicates that CHH may have some problems paying its short term obligations.
CHH's Current ratio of 0.31 is on the low side compared to the rest of the industry. CHH is outperformed by 94.03% of its industry peers.
CHH has a Quick Ratio of 0.31. 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 0.31 is on the low side compared to the rest of the industry. CHH is outperformed by 88.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.31 | ||
| Quick Ratio | 0.31 |
3. Growth
3.1 Past
CHH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 16.10%, which is quite good.
Measured over the past years, CHH shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.47% on average per year.
CHH shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.66%.
The Revenue has been growing by 8.20% on average over the past years. This is quite good.
EPS 1Y (TTM)16.1%
EPS 3Y43.83%
EPS 5Y9.47%
EPS growth Q2Q14.29%
Revenue 1Y (TTM)14.66%
Revenue growth 3Y25.88%
Revenue growth 5Y8.2%
Revenue growth Q2Q-0.99%
3.2 Future
CHH is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.01% yearly.
CHH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.42% yearly.
EPS Next Y5.17%
EPS Next 2Y6.64%
EPS Next 3Y6.82%
EPS Next 5Y14.01%
Revenue Next Year3.19%
Revenue Next 2Y2.99%
Revenue Next 3Y3.09%
Revenue Next 5Y6.42%
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 accelerating.
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
A Price/Earnings ratio of 19.50 indicates a rather expensive valuation of CHH.
Based on the Price/Earnings ratio, CHH is valued a bit cheaper than 68.66% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 24.84. CHH is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 18.55, CHH is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CHH indicates a somewhat cheap valuation: CHH is cheaper than 65.67% of the companies listed in the same industry.
CHH is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.35, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.5 | ||
| Fwd PE | 18.55 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CHH is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CHH is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.24 | ||
| EV/EBITDA | 12.34 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
CHH has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)3.77
PEG (5Y)2.06
EPS Next 2Y6.64%
EPS Next 3Y6.82%
5. Dividend
5.1 Amount
With a yearly dividend of 0.97%, CHH is not a good candidate for dividend investing.
CHH's Dividend Yield is a higher than the industry average which is at 2.56.
With a Dividend Yield of 0.97, CHH pays less dividend than the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.97% |
5.2 History
The dividend of CHH has a limited annual growth rate of 5.08%.
CHH has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)5.08%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
18.23% of the earnings are spent on dividend by CHH. This is a low number and sustainable payout ratio.
CHH's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP18.23%
EPS Next 2Y6.64%
EPS Next 3Y6.82%
CHOICE HOTELS INTL INC
NYSE:CHH (4/29/2024, 2:58:10 PM)
119.56
+0.51 (+0.43%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap5.93B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.97% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.5 | ||
| Fwd PE | 18.55 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)3.77
PEG (5Y)2.06
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.93% | ||
| ROE | 869.81% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 30.03% | ||
| PM (TTM) | 16.5% | ||
| GM | 49.34% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.78
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 30.02 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.31 | ||
| Quick Ratio | 0.31 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)16.1%
EPS 3Y43.83%
EPS 5Y
EPS growth Q2Q
EPS Next Y5.17%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)14.66%
Revenue growth 3Y25.88%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y