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CHH

Choice Hotels International NYSE:CHH Stock Report

Last Price

US$121.21

Market Cap

US$6.7b

7D

7.6%

1Y

5.5%

Updated

16 Aug, 2022

Data

Company Financials +
CHH fundamental analysis
Snowflake Score
Valuation1/6
Future Growth1/6
Past Performance5/6
Financial Health4/6
Dividends0/6

CHH Stock Overview

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

Choice Hotels International Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Choice Hotels International
Historical stock prices
Current Share PriceUS$121.21
52 Week HighUS$157.46
52 Week LowUS$108.70
Beta1.32
1 Month Change8.28%
3 Month Change-0.39%
1 Year Change5.51%
3 Year Change37.35%
5 Year Change97.09%
Change since IPO1,326.00%

Recent News & Updates

Aug 05
Does Choice Hotels International (NYSE:CHH) Have A Healthy Balance Sheet?

Does Choice Hotels International (NYSE:CHH) Have A Healthy Balance Sheet?

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...

Shareholder Returns

CHHUS HospitalityUS Market
7D7.6%7.1%4.5%
1Y5.5%-10.7%-8.9%

Return vs Industry: CHH exceeded the US Hospitality industry which returned -13.4% over the past year.

Return vs Market: CHH exceeded the US Market which returned -9.6% over the past year.

Price Volatility

Is CHH's price volatile compared to industry and market?
CHH volatility
CHH Average Weekly Movement4.8%
Hospitality Industry Average Movement8.6%
Market Average Movement7.6%
10% most volatile stocks in US Market16.8%
10% least volatile stocks in US Market3.1%

Stable Share Price: CHH is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: CHH's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19391,460Pat Pacioushttps://www.choicehotels.com

Choice Hotels International, Inc., together with its subsidiaries, operates as a hotel franchisor worldwide. The company operates in Hotel Franchising and Corporate & Other segments. It 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, Everhome Suites, Cambria Hotels, and Ascend Hotel Collection.

Choice Hotels International Fundamentals Summary

How do Choice Hotels International's earnings and revenue compare to its market cap?
CHH fundamental statistics
Market CapUS$6.71b
Earnings (TTM)US$352.72m
Revenue (TTM)US$1.23b

19.0x

P/E Ratio

5.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CHH income statement (TTM)
RevenueUS$1.23b
Cost of RevenueUS$535.10m
Gross ProfitUS$698.60m
Other ExpensesUS$345.89m
EarningsUS$352.72m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)6.37
Gross Margin56.63%
Net Profit Margin28.59%
Debt/Equity Ratio254.7%

How did CHH perform over the long term?

See historical performance and comparison

Dividends

0.8%

Current Dividend Yield

15%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is CHH undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for CHH?

Other financial metrics that can be useful for relative valuation.

CHH key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue5.8x
Enterprise Value/EBITDA12.9x
PEG Ratio125.4x

Price to Earnings Ratio vs Peers

How does CHH's PE Ratio compare to its peers?

CHH PE Ratio vs Peers
The above table shows the PE ratio for CHH vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average17.6x
WH Wyndham Hotels & Resorts
18.6x-0.9%US$6.5b
VAC Marriott Vacations Worldwide
22.7x18.6%US$6.0b
HGV Hilton Grand Vacations
17.8x26.6%US$5.3b
TNL Travel + Leisure
11.1x15.7%US$4.0b
CHH Choice Hotels International
19x0.2%US$6.7b

Price-To-Earnings vs Peers: CHH is expensive based on its Price-To-Earnings Ratio (19x) compared to the peer average (17.6x).


Price to Earnings Ratio vs Industry

How does CHH's PE Ratio compare vs other companies in the US Hospitality Industry?

Price-To-Earnings vs Industry: CHH is expensive based on its Price-To-Earnings Ratio (19x) compared to the US Hospitality industry average (18.3x)


Price to Earnings Ratio vs Fair Ratio

What is CHH's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

CHH PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio19x
Fair PE Ratio24.3x

Price-To-Earnings vs Fair Ratio: CHH is good value based on its Price-To-Earnings Ratio (19x) compared to the estimated Fair Price-To-Earnings Ratio (24.3x).


Share Price vs Fair Value

What is the Fair Price of CHH when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: CHH ($121.21) is trading above our estimate of fair value ($83.17)

Significantly Below Fair Value: CHH is trading above our estimate of fair value.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is less than 20% higher than the current share price.


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Future Growth

How is Choice Hotels International forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


0.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CHH's forecast earnings growth (0.2% per year) is below the savings rate (1.9%).

Earnings vs Market: CHH's earnings (0.2% per year) are forecast to grow slower than the US market (14.5% per year).

High Growth Earnings: CHH's earnings are forecast to grow, but not significantly.

Revenue vs Market: CHH's revenue (4% per year) is forecast to grow slower than the US market (7.9% per year).

High Growth Revenue: CHH's revenue (4% per year) is forecast to grow slower than 20% 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 (50.4%).


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Past Performance

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

Past Performance Score

5/6

Past Performance Score 5/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


10.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: CHH has high quality earnings.

Growing Profit Margin: CHH's current net profit margins (28.6%) are higher than last year (15%).


Past Earnings Growth Analysis

Earnings Trend: CHH's earnings have grown by 10.7% per year over the past 5 years.

Accelerating Growth: CHH's earnings growth over the past year (171.3%) exceeds its 5-year average (10.7% per year).

Earnings vs Industry: CHH earnings growth over the past year (171.3%) exceeded the Hospitality industry 51%.


Return on Equity

High ROE: Whilst CHH's Return on Equity (85.02%) is outstanding, this metric is skewed due to their high level of debt.


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Financial Health

How is Choice Hotels International's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: CHH's short term assets ($983.6M) exceed its short term liabilities ($582.4M).

Long Term Liabilities: CHH's short term assets ($983.6M) do not cover its long term liabilities ($1.1B).


Debt to Equity History and Analysis

Debt Level: CHH's net debt to equity ratio (109%) is considered high.

Reducing Debt: CHH had negative shareholder equity 5 years ago, but is now positive and has therefore improved.

Debt Coverage: CHH's debt is well covered by operating cash flow (41.5%).

Interest Coverage: CHH's interest payments on its debt are well covered by EBIT (12.8x coverage).


Balance Sheet


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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


0.78%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: CHH's dividend (0.78%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.47%).

High Dividend: CHH's dividend (0.78%) is low compared to the top 25% of dividend payers in the US market (3.96%).


Stability and Growth of Payments

Stable Dividend: CHH is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: CHH is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Earnings Payout to Shareholders

Earnings Coverage: CHH is not paying a notable dividend for the US market.


Cash Payout to Shareholders

Cash Flow Coverage: CHH is not paying a notable dividend for the US market.


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Management

How experienced are the management team and are they aligned to shareholders interests?

5.9yrs

Average management tenure


CEO

Pat Pacious (56 yo)

6.25yrs

Tenure

US$11,153,040

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

Compensation vs Market: Pat's total compensation ($USD11.15M) is above average for companies of similar size in the US market ($USD8.11M).

Compensation vs Earnings: Pat's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: CHH's management team is seasoned and experienced (5.9 years average tenure).


Board Members

Experienced Board: CHH's board of directors are considered experienced (8.4 years average tenure).


Ownership

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

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Choice Hotels International, Inc.'s 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
  • Implied Market Cap: US$6.714b
  • Shares outstanding: 55.39m
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/16 00:00
End of Day Share Price2022/08/16 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.