(CHH) Choice Hotels International - Overview
Stock: Hotel Franchising, Brand Licensing, Property Management
EPS (Earnings per Share)
Revenue
Dividends
| Dividend Yield | 1.01% |
| Yield on Cost 5y | 1.12% |
| Yield CAGR 5y | 22.12% |
| Payout Consistency | 66.2% |
| Payout Ratio | 21.5% |
| Risk 5d forecast | |
|---|---|
| Volatility | 29.1% |
| Relative Tail Risk | -3.30% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | -1.06 |
| Alpha | -40.25 |
| Character TTM | |
|---|---|
| Beta | 0.796 |
| Beta Downside | 0.731 |
| Drawdowns 3y | |
|---|---|
| Max DD | 45.50% |
| CAGR/Max DD | -0.06 |
Description: CHH Choice Hotels International January 09, 2026
Choice Hotels International (CHH) is a global hotel franchisor that licenses a portfolio of 20+ brands-including Comfort Inn, Ascend Hotel Collection, and Radisson-to independent owners, operating through two reporting segments: Hotel Franchising & Management and Corporate & Other.
In FY 2024 the company reported a 7.2% year-over-year increase in franchise fee revenue, driven by a 4.5% rise in system-wide rooms and a 3.1% lift in average daily rate (ADR). Its RevPAR growth of 5.8% outpaced the industry median of 3.9%, reflecting strong brand-level performance and a growing pipeline of over 1,200 new openings slated through 2026.
Key macro drivers include U.S. consumer confidence, which remains above 100 (April 2024), supporting leisure travel demand, and a gradual easing of inflationary pressure that benefits discretionary spending on accommodations. Conversely, higher interest rates could temper new franchise development, adding upside uncertainty to the franchise fee outlook.
For a deeper, data-rich analysis of CHH’s valuation dynamics, consider exploring the detailed metrics available on ValueRay.
Piotroski VR‑10 (Strict, 0-10) 5.0
| Net Income: 382.1m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.07 > 0.02 and ΔFCF/TA 1.98 > 1.0 |
| NWC/Revenue: -1.14% < 20% (prev -9.02%; Δ 7.88% < -1%) |
| CFO/TA 0.09 > 3% & CFO 267.6m > Net Income 382.1m |
| Net Debt (1.98b) to EBITDA (637.4m): 3.10 < 3 |
| Current Ratio: 0.96 > 1.5 & < 3 |
| Outstanding Shares: last quarter (46.5m) vs 12m ago -1.56% < -2% |
| Gross Margin: 51.46% > 18% (prev 0.48%; Δ 5098 % > 0.5%) |
| Asset Turnover: 58.57% > 50% (prev 61.06%; Δ -2.50% > 0%) |
| Interest Coverage Ratio: 6.43 > 6 (EBITDA TTM 637.4m / Interest Expense TTM 88.5m) |
Altman Z'' 4.77
| A: -0.01 (Total Current Assets 450.3m - Total Current Liabilities 468.5m) / Total Assets 2.91b |
| B: 0.78 (Retained Earnings 2.27b / Total Assets 2.91b) |
| C: 0.21 (EBIT TTM 569.5m / Avg Total Assets 2.73b) |
| D: 0.82 (Book Value of Equity 2.26b / Total Liabilities 2.76b) |
| Altman-Z'' Score: 4.77 = AA |
Beneish M -2.51
| DSRI: 1.63 (Receivables 352.4m/210.9m, Revenue 1.60b/1.55b) |
| GMI: 0.94 (GM 51.46% / 48.30%) |
| AQI: 0.99 (AQ_t 0.60 / AQ_t-1 0.61) |
| SGI: 1.03 (Revenue 1.60b / 1.55b) |
| TATA: 0.04 (NI 382.1m - CFO 267.6m) / TA 2.91b) |
| Beneish M-Score: -2.51 (Cap -4..+1) = A |
What is the price of CHH shares?
Over the past week, the price has changed by +6.30%, over one month by +4.39%, over three months by +9.21% and over the past year by -29.22%.
Is CHH a buy, sell or hold?
- StrongBuy: 3
- Buy: 1
- Hold: 9
- Sell: 1
- StrongSell: 1
What are the forecasts/targets for the CHH price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 108 | -1.2% |
| Analysts Target Price | 108 | -1.2% |
| ValueRay Target Price | 105.1 | -3.8% |
CHH Fundamental Data Overview February 05, 2026
P/E Forward = 14.5985
P/S = 5.7313
P/B = 31.76
P/EG = 1.4598
Revenue TTM = 1.60b USD
EBIT TTM = 569.5m USD
EBITDA TTM = 637.4m USD
Long Term Debt = 1.92b USD (from longTermDebt, last quarter)
Short Term Debt = 5.37m USD (from shortTermDebt, last fiscal year)
Debt = 2.03b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 1.98b USD (from netDebt column, last quarter)
Enterprise Value = 6.67b USD (4.70b + Debt 2.03b - CCE 52.6m)
Interest Coverage Ratio = 6.43 (Ebit TTM 569.5m / Interest Expense TTM 88.5m)
EV/FCF = 31.70x (Enterprise Value 6.67b / FCF TTM 210.5m)
FCF Yield = 3.15% (FCF TTM 210.5m / Enterprise Value 6.67b)
FCF Margin = 13.19% (FCF TTM 210.5m / Revenue TTM 1.60b)
Net Margin = 23.93% (Net Income TTM 382.1m / Revenue TTM 1.60b)
Gross Margin = 51.46% ((Revenue TTM 1.60b - Cost of Revenue TTM 774.9m) / Revenue TTM)
Gross Margin QoQ = 53.49% (prev 53.39%)
Tobins Q-Ratio = 2.30 (Enterprise Value 6.67b / Total Assets 2.91b)
Interest Expense / Debt = 1.16% (Interest Expense 23.5m / Debt 2.03b)
Taxrate = 14.66% (30.9m / 210.9m)
NOPAT = 486.0m (EBIT 569.5m * (1 - 14.66%))
Current Ratio = 0.96 (Total Current Assets 450.3m / Total Current Liabilities 468.5m)
Debt / Equity = 13.54 (Debt 2.03b / totalStockholderEquity, last quarter 149.8m)
Debt / EBITDA = 3.10 (Net Debt 1.98b / EBITDA 637.4m)
Debt / FCF = 9.38 (Net Debt 1.98b / FCF TTM 210.5m)
Total Stockholder Equity = 3.58m (last 4 quarters mean from totalStockholderEquity)
RoA = 14.02% (Net Income 382.1m / Total Assets 2.91b)
RoE = 10.7k% (out of range, set to none) (Net Income TTM 382.1m / Total Stockholder Equity 3.58m)
RoCE = 29.63% (EBIT 569.5m / Capital Employed (Equity 3.58m + L.T.Debt 1.92b))
RoIC = 26.00% (NOPAT 486.0m / Invested Capital 1.87b)
WACC = 6.48% (E(4.70b)/V(6.73b) * Re(8.85%) + D(2.03b)/V(6.73b) * Rd(1.16%) * (1-Tc(0.15)))
Discount Rate = 8.85% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: -100.0 | Cagr: -3.14%
[DCF Debug] Terminal Value 80.98% ; FCFF base≈179.9m ; Y1≈143.4m ; Y5≈96.4m
Fair Price DCF = 11.36 (EV 2.50b - Net Debt 1.98b = Equity 525.5m / Shares 46.3m; r=6.48% [WACC]; 5y FCF grow -24.27% → 2.90% )
EPS Correlation: -7.82 | EPS CAGR: -42.35% | SUE: -4.0 | # QB: 0
Revenue Correlation: 57.31 | Revenue CAGR: 12.81% | SUE: 4.0 | # QB: 1
EPS next Quarter (2026-03-31): EPS=1.41 | Chg30d=+0.129 | Revisions Net=+1 | Analysts=9
EPS next Year (2026-12-31): EPS=7.13 | Chg30d=+0.037 | Revisions Net=+0 | Growth EPS=+2.9% | Growth Revenue=+2.0%