Choice Hotels International, Inc., together with its subsidiaries, operates as a hotel franchisor worldwide.
Average dividend payer and slightly overvalued.
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
Stable Share Price: CHH's share price has been volatile over the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: CHH exceeded the US Hospitality industry which returned -52% over the past year.
Return vs Market: CHH underperformed the US Market which returned -15.1% over the past year.
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
1 week ago | Simply Wall StHow Does Choice Hotels International's (NYSE:CHH) P/E Compare To Its Industry, After The Share Price Drop?
1 week ago | Simply Wall StChoice Hotels International, Inc. (NYSE:CHH) Is About To Go Ex-Dividend, And It Pays A 1.3% Yield
1 week ago | Simply Wall StIs Choice Hotels International, Inc.'s (NYSE:CHH) CEO Pay Justified?
Is Choice Hotels International undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: CHH ($54.15) is trading below our estimate of fair value ($96.88)
Significantly Below Fair Value: CHH is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: CHH is poor value based on its PE Ratio (13.5x) compared to the Hospitality industry average (11.5x).
PE vs Market: CHH is poor value based on its PE Ratio (13.5x) compared to the US market (12.4x).
Price to Earnings Growth Ratio
PEG Ratio: CHH is poor value based on its PEG Ratio (5.7x)
Price to Book Ratio
PB vs Industry: CHH has negative assets, so we can't compare its PB Ratio to the US Hospitality industry average.
How is Choice Hotels International forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CHH's forecast earnings growth (2.4% per year) is above the savings rate (1.7%).
Earnings vs Market: CHH's earnings (2.4% per year) are forecast to grow slower than the US market (13.4% per year).
High Growth Earnings: CHH's earnings are forecast to grow, but not significantly.
Revenue vs Market: CHH's revenue is expected to decline over the next 3 years (-1.8% per year).
High Growth Revenue: CHH's revenue is forecast to decline over the next 3 years (-1.8% per year).
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: CHH's Return on Equity is forecast to be very high in 3 years time (76.2%).
How has Choice Hotels International performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: CHH has a high level of non-cash earnings.
Growing Profit Margin: CHH's current net profit margins (19.9%) are lower than last year (20.7%).
Past Earnings Growth Analysis
Earnings Trend: CHH's earnings have grown by 13.9% per year over the past 5 years.
Accelerating Growth: CHH's earnings growth over the past year (3%) is below its 5-year average (13.9% per year).
Earnings vs Industry: CHH earnings growth over the past year (3%) exceeded the Hospitality industry 1.6%.
Return on Equity
High ROE: CHH's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.
How is Choice Hotels International's financial position?
Financial Position Analysis
Short Term Liabilities: CHH has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.
Long Term Liabilities: CHH has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.
Debt to Equity History and Analysis
Debt Level: CHH has negative shareholder equity, which is a more serious situation than a high debt level.
Reducing Debt: CHH's has negative shareholder equity, so we do not need to check if its debt has reduced over time.
Debt Coverage: CHH's debt is well covered by operating cash flow (31.8%).
Interest Coverage: CHH's interest payments on its debt are well covered by EBIT (9.1x coverage).
Inventory Level: CHH has a high level of physical assets or inventory.
Debt Coverage by Assets: CHH has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.
What is Choice Hotels International's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: CHH's dividend (1.66%) isn’t notable compared to the bottom 25% of dividend payers in the US market (2.05%).
High Dividend: CHH's dividend (1.66%) is low compared to the top 25% of dividend payers in the US market (5.71%).
Stability and Growth of Payments
Stable Dividend: CHH's dividends per share have been stable in the past 10 years.
Growing Dividend: CHH's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (21.7%), CHH's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: CHH's dividends in 3 years are forecast to be well covered by earnings (19.1% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Pat Pacious (53yo)
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
Compensation vs Market: Pat's total compensation ($USD5.76M) is about average for companies of similar size in the US market ($USD5.69M).
Compensation vs Earnings: Pat's compensation has increased by more than 20% in the past year.
|Chief Financial Officer||3.08yrs||US$2.04m||0.039% $1.2m|
|Senior VP of External Affairs||8.17yrs||US$1.42m||0.062% $1.9m|
|Chief Human Resources Officer||18.25yrs||US$1.22m||0.037% $1.1m|
|Chief Development Officer||15.25yrs||US$1.95m||0.16% $4.9m|
|Senior VP of Finance & Chief Accounting Officer||3.92yrs||US$717.34k||0.057% $1.7m|
|Chief Technology Officer||2.17yrs||no data||no data|
|Vice President of Global Sales||2.17yrs||no data||no data|
|Chief Commercial Officer||8.92yrs||no data||0.054% $1.6m|
|Chief Customer Officer||0.42yr||no data||no data|
Experienced Management: CHH's management team is considered experienced (3.5 years average tenure).
|Chairman of the Board||22.5yrs||no data||5.8% $173.9m|
|Independent Director||8.25yrs||US$209.01k||0.050% $1.5m|
|Independent Director||8.17yrs||US$235.02k||0.046% $1.4m|
|Independent Director||14.08yrs||US$231.19k||0.047% $1.4m|
|Lead Independent Director||no data||US$265.00k||0.082% $2.4m|
|Member of Regional Advisory Board||no data||no data||no data|
|Member of the Travel Advisory Board||12.08yrs||no data||no data|
|Independent Director||5.5yrs||US$220.35k||0.019% $560.0k|
|Independent Director||6.08yrs||US$258.17k||0.022% $665.6k|
Experienced Board: CHH's board of directors are considered experienced (8.2 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Choice Hotels International, Inc.'s company bio, employee growth, exchange listings and data sources
- Name: Choice Hotels International, Inc.
- Ticker: CHH
- Exchange: NYSE
- Founded: 1939
- Industry: Hotels, Resorts and Cruise Lines
- Sector: Consumer Services
- Market Cap: US$3.000b
- Shares outstanding: 55.40m
- Website: https://www.choicehotels.com
Number of Employees
- Choice Hotels International, Inc.
- 1 Choice Hotels Circle
- Suite 400
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|CHH||NYSE (New York Stock Exchange)||Yes||Common Stock||US||USD||Oct 1997|
|CZH||DB (Deutsche Boerse AG)||Yes||Common Stock||DE||EUR||Oct 1997|
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 lodging properties under the brand names of Comfort Inn, Comfort Suites, Quality, Clarion, Clarion Pointe, Sleep Inn, Econo Lodge, Rodeway Inn, MainStay Suites, Suburban Extended Stay Hotel, WoodSpring Suites, Cambria Hotels, V8 Hotel Köln @Motorworld, Quality Hotel Ostrava, Hotel Aquarius Venice, and Ascend Hotel Collection. It also develops and markets cloud-based technology products to the hotel industry. As of February 12, 2020, the company had approximately 7,000 hotels with 575,000 rooms in approximately 40 countries and territories. Choice Hotels International, Inc. has a strategic agreement with AM Resorts, LLC to improve its loyalty program. The company was founded in 1939 and is based in Rockville, Maryland.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/04/04 23:33|
|End of Day Share Price||2020/04/03 00:00|
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.