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

-2.3%

CHH

0.6%

US Hospitality

0.5%

US Market


1 Year Return

18.0%

CHH

5.6%

US Hospitality

6.8%

US Market

Return vs Industry: CHH exceeded the US Hospitality industry which returned 5.6% over the past year.

Return vs Market: CHH exceeded the US Market which returned 6.8% over the past year.


Shareholder returns

CHHIndustryMarket
7 Day-2.3%0.6%0.5%
30 Day-4.4%-2.6%-0.8%
90 Day-0.2%-4.0%-0.9%
1 Year19.2%18.0%8.2%5.6%9.2%6.8%
3 Year97.8%91.0%43.0%33.7%45.6%36.2%
5 Year73.0%61.8%40.9%25.3%63.2%45.4%

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?

22.43x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CHH ($86.6) is trading above our estimate of fair value ($76.98)

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


Price To Earnings Ratio

PE vs Industry: CHH is good value based on its PE Ratio (22.4x) compared to the Hospitality industry average (22.5x).

PE vs Market: CHH is poor value based on its PE Ratio (22.4x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

PEG Ratio: CHH is poor value based on its PEG Ratio (3.1x)


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 10 analysts?

7.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CHH's forecast earnings growth (7.1% per year) is above the savings rate (2.7%).

Earnings vs Market: CHH's earnings (7.1% per year) are forecast to grow slower than the US market (14.6% per year).

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

Revenue vs Market: CHH's revenue (3.6% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: CHH's revenue (3.6% 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 (386.9%).


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

Earnings Trend: CHH's earnings have grown by 12% per year over the past 5 years.

Accelerating Growth: CHH's earnings growth over the past year (41.8%) exceeds its 5-year average (12% per year).

Earnings vs Industry: CHH earnings growth over the past year (41.8%) exceeded the Hospitality industry -13.9%.


Return on Equity

High ROE: CHH's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Return on Assets

ROA vs Industry: CHH has a higher Return on Assets than the Hospitality industry average last year.


Return on Capital Employed

ROCE Improving: CHH's Return on Capital Employed has declined over the past 3 years.


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 well covered by operating cash flow (35.3%).

Interest Coverage: CHH's interest payments on its debt are well covered by EBIT (9.5x coverage).


Balance Sheet

Inventory Level: CHH has a low level of unsold assets or inventory.

Debt Coverage by Assets: CHH 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?

0.99%

Current Dividend Yield


Dividend Yield vs Market

company1.0%marketbottom25%1.4%markettop25%3.7%industryaverage2.9%forecastin3Years1.0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: CHH's dividend (0.99%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: CHH's dividend (0.99%) is low compared to the top 25% of dividend payers in the US market (3.73%).

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 (22.3%), 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 (17.6% payout ratio).


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?

5.0yrs

Average management tenure


CEO

Pat Pacious (53yo)

2.1yrs

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

Compensation vs. Market: Pat has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

Compensation vs Earnings: Pat's compensation has increased by more than 20% in the past year.


Management Age and Tenure

5.0yrs

Average Tenure

51yo

Average Age

Experienced Management: CHH's management team is seasoned and experienced (5 years average tenure).


Board Age and Tenure

7.7yrs

Average Tenure

62yo

Average Age

Experienced Board: CHH's board of directors are considered experienced (7.7 years average tenure).


Insider Trading

Insider Buying: CHH 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
Independent Director
Shares8,750
Max PriceUS$84.11
SellUS$896,23117 May 19
David Pepper
EntityIndividual
Role
Senior Key Executive
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: 14.8yrs
    • Compensation: US$1.95m
  • Pat Pacious (53yo)

    President

    • Tenure: 2.1yrs
    • Compensation: US$5.76m
  • Simone Wu (54yo)

    SVP, General Counsel

    • Tenure: 7.7yrs
    • Compensation: US$1.42m
  • Scott Oaksmith (47yo)

    Senior VP of Finance & Chief Accounting Officer

    • Tenure: 3.4yrs
    • Compensation: US$717.34k
  • Patrick Cimerola (50yo)

    Chief Human Resources Officer

    • Tenure: 17.8yrs
    • Compensation: US$1.22m
  • Robert McDowell (52yo)

    Chief Commercial Officer

    • Tenure: 8.4yrs
  • John Bonds (48yo)

    Senior Vice President of Enterprise Operations & Technology

    • Tenure: 6.7yrs
  • Dominic Dragisich (36yo)

    Chief Financial Officer

    • Tenure: 2.6yrs
    • Compensation: US$2.04m
  • Brian Kirkland

    Chief Technology Officer

    • Tenure: 1.7yrs
  • Chad Fletcher

    Vice President of Global Sales

    • Tenure: 1.7yrs

Board Members

  • Stewart Bainum (73yo)

    Chairman of the Board

    • Tenure: 22yrs
  • John Tague (57yo)

    Independent Director

    • Tenure: 7.8yrs
    • Compensation: US$209.01k
  • Barbara Alexander (70yo)

    Independent Director

    • Tenure: 7.7yrs
    • Compensation: US$235.02k
  • Bill Jews (67yo)

    Independent Director

    • Tenure: 13.6yrs
    • Compensation: US$231.19k
  • Ervin Shames (78yo)

    Lead Independent Director

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

    President

    • Tenure: 2.1yrs
    • Compensation: US$5.76m
  • Dave Douglas

    Member of Regional Advisory Board

    • Tenure: 0yrs
  • Lani Hopkins

    Member of the Travel Advisory Board

    • Tenure: 11.6yrs
  • Liza Landsman (49yo)

    Independent Director

    • Tenure: 5yrs
    • Compensation: US$220.35k
  • Monte J. Koch (55yo)

    Independent Director

    • Tenure: 5.6yrs
    • 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$4.794b
  • 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 Analysis2019/10/20 23:33
End of Day Share Price2019/10/18 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.