NYSE:CHH

Stock Analysis Report

Choice Hotels International

Executive Summary

Choice Hotels International, Inc., together with its subsidiaries, operates as a hotel franchisor worldwide.

Snowflake

Fundamentals

Proven track record average dividend payer.


Similar Companies

Share Price & News

How has Choice Hotels International's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-0.3%

NYSE:CHH

0.4%

US Hospitality

0.8%

US Market


1 Year Return

13.7%

NYSE:CHH

-1.2%

US Hospitality

1.9%

US Market

CHH outperformed the Hospitality industry which returned -0.7% over the past year.

CHH outperformed the Market in United States of America which returned 2.1% over the past year.


Share holder returns

CHHIndustryMarket
7 Day-0.3%0.4%0.8%
30 Day5.5%5.7%3.4%
90 Day8.4%1.2%2.1%
1 Year15.0%13.7%1.2%-1.2%4.2%1.9%
3 Year108.7%101.0%48.6%38.7%46.7%37.2%
5 Year91.7%79.1%44.0%28.3%62.3%44.5%

Price Volatility Vs. Market

How volatile is Choice Hotels International's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Choice Hotels International undervalued based on future cash flows and its price relative to the stock market?

24.1x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Choice Hotels International's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Choice Hotels International's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Choice Hotels International is overvalued based on earnings compared to the US Hospitality industry average.

Choice Hotels International is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Choice Hotels International is poor value based on expected growth next year.


Price Based on Value of Assets

Choice Hotels International has negative assets, we can't compare the value of its assets to the US Hospitality industry average.


Next Steps

Future Growth

How is Choice Hotels International expected to perform in the next 1 to 3 years based on estimates from 11 analysts?

8.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Choice Hotels International's revenue is expected to grow by 4% yearly, however this is not considered high growth (20% yearly).

Choice Hotels International's earnings are expected to grow by 8.7% yearly, however this is not considered high growth (20% yearly).

Choice Hotels International's revenue growth is positive but not above the United States of America market average.

Choice Hotels International's earnings growth is positive but not above the United States of America market average.

Choice Hotels International's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Choice Hotels International is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).


Next Steps

Past Performance

How has Choice Hotels International performed over the past 5 years?

12.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Choice Hotels International's year on year earnings growth rate has been positive over the past 5 years.

Choice Hotels International's 1-year earnings growth exceeds its 5-year average (41.8% vs 12%)

Choice Hotels International's earnings growth has exceeded the US Hospitality industry average in the past year (41.8% vs -8.7%).


Return on Equity

It is difficult to establish if Choice Hotels International has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) due to its liabilities exceeding its assets.


Return on Assets

Choice Hotels International used its assets more efficiently than the US Hospitality industry average last year based on Return on Assets.


Return on Capital Employed

Choice Hotels International's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Choice Hotels International's financial position?


Financial Position Analysis

Choice Hotels International's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Choice Hotels International's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Choice Hotels International has negative shareholder equity (liabilities exceed assets), this is a more serious situation compared with a high debt level.

Irrelevant to check if Choice Hotels International's debt level has increased considering it has negative shareholder equity.

Debt is well covered by operating cash flow (35.3%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 9.5x coverage).


Balance Sheet

Low level of unsold assets.

Choice Hotels International has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


Next Steps

Dividend

What is Choice Hotels International's current dividend yield, its reliability and sustainability?

0.94%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Choice Hotels International's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.43%).

Choice Hotels International's dividend is below the markets top 25% of dividend payers in United States of America (3.67%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (4.5x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (5.8x coverage).


Next Steps

Management

What is the CEO of Choice Hotels International's salary, the management and board of directors tenure and is there insider trading?

3.8yrs

Average management tenure


CEO

Pat Pacious (53yo)

2yrs

Tenure

US$5,756,856

Compensation

Mr. Patrick S. Pacious, also known as Pat, has been the Chief Executive Officer of Choice Hotels International Inc. since September 12, 2017 and as its President since May 24, 2016. Mr. Pacious served as t ...


CEO Compensation Analysis

Pat's remuneration is about average for companies of similar size in United States of America.

Pat's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

3.8yrs

Average Tenure

51yo

Average Age

The tenure for the Choice Hotels International management team is about average.


Board Age and Tenure

7.6yrs

Average Tenure

62yo

Average Age

The tenure for the Choice Hotels International board of directors is about average.


Insider Trading

Choice Hotels International individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$55,23119 Aug 19
Robert McDowell
EntityIndividual
Role
Senior Key Executive
Chief Commercial Officer
Shares625
Max PriceUS$88.37
SellUS$735,96313 Jun 19
William Jews
EntityIndividual
Role
Member of the Board of Directors
Director
Shares8,750
Max PriceUS$84.11
SellUS$896,23117 May 19
David Pepper
EntityIndividual
Role
Head of Corporate Development
Chief Development Officer
Shares10,658
Max PriceUS$84.09
SellUS$498,18514 Mar 19
Patrick Cimerola
EntityIndividual
Role
Head of Human Resources
Chief Human Resources Officer
Shares6,410
Max PriceUS$77.72

Ownership Breakdown


Management Team

  • David Pepper (52yo)

    Chief Development Officer

    • Tenure: 4.3yrs
    • Compensation: US$1.95m
  • Pat Pacious (53yo)

    President

    • Tenure: 2yrs
    • Compensation: US$5.76m
  • Simone Wu (54yo)

    SVP, General Counsel

    • Tenure: 7.6yrs
    • Compensation: US$1.42m
  • Scott Oaksmith (47yo)

    Senior VP of Finance & Chief Accounting Officer

    • Tenure: 3.3yrs
    • Compensation: US$717.34k
  • Patrick Cimerola (50yo)

    Chief Human Resources Officer

    • Tenure: 17.7yrs
    • Compensation: US$1.22m
  • Robert McDowell (52yo)

    Chief Commercial Officer

    • Tenure: 8.3yrs
  • John Bonds (48yo)

    Senior Vice President of Enterprise Operations & Technology

    • Tenure: 6.6yrs
  • Dominic Dragisich (36yo)

    Chief Financial Officer

    • Tenure: 2.5yrs
    • Compensation: US$2.04m
  • Brian Kirkland

    Chief Technology Officer

    • Tenure: 1.6yrs
  • Chad Fletcher

    Vice President of Global Sales

    • Tenure: 1.6yrs

Board Members

  • Stewart Bainum (73yo)

    Chairman of the Board

    • Tenure: 21.9yrs
  • John Tague (57yo)

    Director

    • Tenure: 7.7yrs
    • Compensation: US$209.01k
  • Barbara Alexander (70yo)

    Director

    • Tenure: 7.6yrs
    • Compensation: US$235.02k
  • Bill Jews (67yo)

    Director

    • Tenure: 13.5yrs
    • Compensation: US$231.19k
  • Ervin Shames (78yo)

    Lead Independent Director

    • Tenure: 0yrs
    • Compensation: US$265.00k
  • Pat Pacious (53yo)

    President

    • Tenure: 2yrs
    • Compensation: US$5.76m
  • Dave Douglas

    Member of Regional Advisory Board

    • Tenure: 0yrs
  • Lani Hopkins

    Member of the Travel Advisory Board

    • Tenure: 11.5yrs
  • Liza Landsman (49yo)

    Director

    • Tenure: 4.9yrs
    • Compensation: US$220.35k
  • Monte J. Koch (55yo)

    Director

    • Tenure: 5.5yrs
    • Compensation: US$258.17k

Company Information

Choice Hotels International, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Choice Hotels International, Inc.
  • Ticker: CHH
  • Exchange: NYSE
  • Founded: 1939
  • Industry: Hotels, Resorts and Cruise Lines
  • Sector: Consumer Services
  • Market Cap: US$5.150b
  • Shares outstanding: 55.36m
  • Website: https://www.choicehotels.com

Number of Employees


Location

  • Choice Hotels International, Inc.
  • 1 Choice Hotels Circle
  • Suite 400
  • Rockville
  • Maryland
  • 20850
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CHHNYSE (New York Stock Exchange)YesCommon StockUSUSDOct 1997
CZHDB (Deutsche Boerse AG)YesCommon StockDEEUROct 1997

Biography

Choice Hotels International, Inc., together with its subsidiaries, operates as a hotel franchisor worldwide. It operates through Hotel Franchising and Corporate & Other segments. The company franchises lod ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/17 23:39
End of Day Share Price2019/09/17 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.