Choice Hotels International
Market Cap
US$5.6b
Last Updated
2020/12/02 23:16 UTC
Data Sources
Company Financials +
Executive Summary
Choice Hotels International, Inc., together with its subsidiaries, operates as a hotel franchisor worldwide. More Details
Rewards
Risk Analysis
Snowflake Analysis
High growth potential with poor track record.
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
Stable Share Price: CHH is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.
Volatility Over Time: CHH's weekly volatility (6%) has been stable over the past year.
Market Performance
7 Day Return
-0.8%
CHH
0.9%
US Hospitality
0.7%
US Market
1 Year Return
6.0%
CHH
-8.1%
US Hospitality
22.2%
US Market
Return vs Industry: CHH exceeded the US Hospitality industry which returned -9% over the past year.
Return vs Market: CHH underperformed the US Market which returned 22.7% over the past year.
Shareholder returns
| CHH | Industry | Market | |
|---|---|---|---|
| 7 Day | -0.8% | 0.9% | 0.7% |
| 30 Day | 16.3% | 27.3% | 11.8% |
| 90 Day | 2.7% | 15.8% | 8.6% |
| 1 Year | 6.6%6.0% | -6.7%-8.1% | 25.0%22.2% |
| 3 Year | 35.0%31.3% | -1.2%-7.5% | 49.4%39.5% |
| 5 Year | 116.4%104.2% | 39.9%26.0% | 100.2%78.1% |
Long-Term 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 St
Returns On Capital At Choice Hotels International (NYSE:CHH) Paint An Interesting Picture3 weeks ago | Simply Wall St
Key Things To Understand About Choice Hotels International's (NYSE:CHH) CEO Pay Cheque4 months ago | Simply Wall St
Should We Be Excited About The Trends Of Returns At Choice Hotels International (NYSE:CHH)?Valuation
Is Choice Hotels International undervalued compared to its fair value and its price relative to the market?
51.73x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: CHH ($102.16) is trading above our estimate of fair value ($76.95)
Significantly Below Fair Value: CHH is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: CHH is poor value based on its PE Ratio (51.7x) compared to the US Hospitality industry average (38.2x).
PE vs Market: CHH is poor value based on its PE Ratio (51.7x) compared to the US market (19.4x).
Price to Earnings Growth Ratio
PEG Ratio: CHH is poor value based on its PEG Ratio (1.6x)
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.
Next Steps
Future Growth
How is Choice Hotels International forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?
31.5%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CHH's forecast earnings growth (31.5% per year) is above the savings rate (2.2%).
Earnings vs Market: CHH's earnings (31.5% per year) are forecast to grow faster than the US market (21.8% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: CHH's revenue (15.1% per year) is forecast to grow faster than the US market (10.2% per year).
High Growth Revenue: CHH's revenue (15.1% 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 (113.3%).
Next Steps
Past Performance
How has Choice Hotels International performed over the past 5 years?
10.9%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: CHH has a large one-off loss of $30.8M impacting its September 30 2020 financial results.
Growing Profit Margin: CHH's current net profit margins (12.8%) are lower than last year (19.3%).
Past Earnings Growth Analysis
Earnings Trend: CHH's earnings have grown by 10.9% per year over the past 5 years.
Accelerating Growth: CHH's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: CHH had negative earnings growth (-48.3%) over the past year, making it difficult to compare to the Hospitality industry average (-53.8%).
Return on Equity
High ROE: CHH's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.
Next Steps
Financial Health
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 not well covered by operating cash flow (14.1%).
Interest Coverage: CHH's interest payments on its debt are well covered by EBIT (4.5x coverage).
Balance Sheet
Next Steps
Dividend
What is Choice Hotels International current dividend yield, its reliability and sustainability?
0.40%
Forecast Dividend Yield
Dividend Yield vs Market
Notable Dividend: Unable to evaluate CHH's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate CHH's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if CHH's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if CHH's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: CHH is not paying a notable dividend for the US market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of CHH's dividend in 3 years as they are not forecast to pay a notable one for the US market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.5yrs
Average management tenure
CEO
Pat Pacious (54 yo)
3.25yrs
Tenure
US$6,821,432
Compensation
Mr. Patrick S. Pacious, also known as Pat, has been the Chief Executive Officer of Choice Hotels International Inc. since September 12, 2017 and as its President since May 24, 2016. Mr. Pacious served as t...
CEO Compensation Analysis
Compensation vs Market: Pat's total compensation ($USD6.82M) is about average for companies of similar size in the US market ($USD6.94M).
Compensation vs Earnings: Pat's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 3.25yrs | US$6.82m | 0.34% $ 19.2m | |
| Chief Financial Officer | 3.75yrs | US$2.40m | 0.041% $ 2.3m | |
| Senior VP of External Affairs | 8.83yrs | US$1.39m | 0.062% $ 3.5m | |
| Chief Development Officer | 15.92yrs | US$2.94m | 0.17% $ 9.4m | |
| Senior Vice President of Enterprise Operations & Technology | 7.83yrs | US$1.36m | 0.039% $ 2.2m | |
| Chief Accounting Officer | 0.33yr | no data | no data | |
| Chief Technology Officer | 2.83yrs | no data | no data | |
| Vice President of Global Sales | 2.83yrs | no data | no data | |
| Chief Human Resources Officer | 18.92yrs | US$1.22m | 0.037% $ 2.1m | |
| Senior Vice President of Real Estate & Finance | 0.67yr | US$717.34k | 0.060% $ 3.4m | |
| Chief Commercial Officer | 9.58yrs | no data | 0.054% $ 3.0m | |
| Chief Customer Officer | 1.08yrs | no data | no data |
3.5yrs
Average Tenure
52yo
Average Age
Experienced Management: CHH's management team is considered experienced (3.5 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 3.25yrs | US$6.82m | 0.34% $ 19.2m | |
| Chairman of the Board | 23.17yrs | no data | 5.82% $ 328.0m | |
| Independent Director | 8.92yrs | US$249.80k | 0.052% $ 2.9m | |
| Independent Director | 8.83yrs | US$254.03k | 0.049% $ 2.7m | |
| Independent Director | 14.75yrs | US$252.03k | 0.049% $ 2.8m | |
| Lead Independent Director | no data | US$277.31k | 0.084% $ 4.8m | |
| Independent Director | 2.08yrs | US$249.03k | 0.0051% $ 287.3k | |
| Member of Regional Advisory Board | no data | no data | no data | |
| Member of the Travel Advisory Board | 12.75yrs | no data | no data | |
| Independent Director | 6.17yrs | US$250.72k | 0.021% $ 1.2m | |
| Independent Director | 6.75yrs | US$279.29k | 0.024% $ 1.4m | |
| Director | 1.67yrs | US$229.14k | 0.31% $ 17.3m |
7.8yrs
Average Tenure
57yo
Average Age
Experienced Board: CHH's board of directors are considered experienced (7.8 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.
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
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$5.634b
- Shares outstanding: 55.15m
- 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
| 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 |
Biography
Choice Hotels International, Inc., together with its subsidiaries, operates as a hotel franchisor worldwide. The company operates through Hotel Franchising and Corporate & Other segments. It franchises lod...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/12/02 23:16 |
| End of Day Share Price | 2020/12/02 00:00 |
| Earnings | 2020/09/30 |
| Annual Earnings | 2019/12/31 |
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.