NYSE:CHH

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Choice Hotels International

Executive Summary

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


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

CHHIndustryMarket
7 Day-0.8%0.9%0.7%
30 Day16.3%27.3%11.8%
90 Day2.7%15.8%8.6%
1 Year6.6%6.0%-6.7%-8.1%25.0%22.2%
3 Year35.0%31.3%-1.2%-7.5%49.4%39.5%
5 Year116.4%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

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

NamePositionTenureCompensationOwnership
Patrick Pacious
President3.25yrsUS$6.82m0.34%
$ 19.2m
Dominic Dragisich
Chief Financial Officer3.75yrsUS$2.40m0.041%
$ 2.3m
Simone Wu
Senior VP of External Affairs8.83yrsUS$1.39m0.062%
$ 3.5m
David Pepper
Chief Development Officer15.92yrsUS$2.94m0.17%
$ 9.4m
John Bonds
Senior Vice President of Enterprise Operations & Technology7.83yrsUS$1.36m0.039%
$ 2.2m
Elizabeth Redmond
Chief Accounting Officer0.33yrno datano data
Brian Kirkland
Chief Technology Officer2.83yrsno datano data
Chad Fletcher
Vice President of Global Sales2.83yrsno datano data
Patrick Cimerola
Chief Human Resources Officer18.92yrsUS$1.22m0.037%
$ 2.1m
Scott Oaksmith
Senior Vice President of Real Estate & Finance0.67yrUS$717.34k0.060%
$ 3.4m
Robert McDowell
Chief Commercial Officer9.58yrsno data0.054%
$ 3.0m
Sarah Searls
Chief Customer Officer1.08yrsno datano data

3.5yrs

Average Tenure

52yo

Average Age

Experienced Management: CHH's management team is considered experienced (3.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Patrick Pacious
President3.25yrsUS$6.82m0.34%
$ 19.2m
Stewart Bainum
Chairman of the Board23.17yrsno data5.82%
$ 328.0m
John Tague
Independent Director8.92yrsUS$249.80k0.052%
$ 2.9m
Barbara Alexander
Independent Director8.83yrsUS$254.03k0.049%
$ 2.7m
William Jews
Independent Director14.75yrsUS$252.03k0.049%
$ 2.8m
Ervin Shames
Lead Independent Directorno dataUS$277.31k0.084%
$ 4.8m
Maureen Marquess Sullivan
Independent Director2.08yrsUS$249.03k0.0051%
$ 287.3k
Dave Douglas
Member of Regional Advisory Boardno datano datano data
Lani Hopkins
Member of the Travel Advisory Board12.75yrsno datano data
Liza Landsman
Independent Director6.17yrsUS$250.72k0.021%
$ 1.2m
Monte J. Koch
Independent Director6.75yrsUS$279.29k0.024%
$ 1.4m
Brian Bainum
Director1.67yrsUS$229.14k0.31%
$ 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

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. The company operates through Hotel Franchising and Corporate & Other segments. It franchises lod...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/02 23:16
End of Day Share Price2020/12/02 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.