Choice Hotels International Inc

Consumer Discretionary
Hotels/Resorts
www.choicehotels.com

Earnings Score
Safety Score

Market Cap $7.05B
Debt $1.77B
Cash $40.18M
EV $8.78B
FCF $280.30M

Earnings

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Sales & Net Margins

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Earnings	$298.14M
EBIT	$463.77M
ROA	18%
FCF	$280.30M
Equity	-$45.27M
Growth Stability	41%
PE	23.64
PEG	1.08
PB	-155.69
P/FCF	25.14
P/S	4.45
Price/Cash	0.01
Debt/Equity	-39.07
Debt/FCF	6.31
Net Margins	19%
Op. Margins	29%
Earnings CAGR	10%
Sales Growth YoY	9%
Sales Growth QoQ	-9%
Sales CAGR	6%
FCF CAGR	5%
Equity CAGR	-1%
Earnings Stability	0.3
Earnings Growth YoY	162%
Earnings Growth QoQ	-28%

Earnings CAGR 5Y	22%
Sales CAGR 5Y	17%
FCF CAGR 5Y	12%
Equity CAGR 5Y	-12%
Earnings CAGR 3Y	11%
Sales CAGR 3Y	11%
FCF CAGR 3Y	-20%
Equity CAGR 3Y	-36%
Market Cap	$7.05B
Revenue	$1.58B
Dividend Yield	1%
Payout Ratio	19%
Assets	$2.53B
Total Debt	$1.77B
Cash	$40.18M
Shares Outstanding	46.86M
EV	8.78B
Earnings Score	16%
Safety Score	34%
Working Capital	-123.64M
Current Ratio	0.73
Shares Growth 3y	-6%
Equity Growth QoQ	-53%
Equity Growth YoY	-227%

Assets & ROA

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Stockholders Equity & ROE

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Choice Hotels International, Inc. together with its subsidiaries, operates as a hotel franchisor. The company operates through Hotel Franchising & Management and 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, Ascend Hotel Collection, Radisson Blu, Radisson RED, Radisson, Park Plaza, Country Inn & Suites, Radisson Inn & Suites , Park Inn by Radisson, Radisson Individuals, and Radisson Collection. The company also develops and markets cloud-based property management software to non-franchised hoteliers. Choice Hotels International, Inc. was founded in 1939 and is headquartered in Rockville, Maryland.

SEC Filings

Direct access to Choice Hotels International Inc (CHH) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Choice Hotels International Inc compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Choice Hotels International Inc compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 10%

Stability 30%

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Choice Hotels International Inc Discounted Cash Flow

Fully customizable DCF calculator online for Choice Hotels International Inc .

Years

Calculation mode

= $3.9B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$280M	$294M	$308M	$323M	$339M	$355M	$372M	$390M	$409M	$429M	$450M	$4.5B
DCF		$267M	$255M	$243M	$231M	$221M	$210M	$200M	$191M	$182M	$173M	$1.7B
Value	$3.9B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	12/2024	TTM
Net Margins	15%	15%	11%	21%	20%	10%	27%	24%	17%	19%	19%
ROA	-	28%	29%	28%	23%	8%	22%	23%	16%	18%	18%
ROE	-	-44%	-54%	-117%	-942%	-1K%	108%	214%	722%	-659%	-

Good Net Margins (18.81%)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	12/2024	TTM
Debt over FCF	-	6.64	3.11	3.87	4.03	13.85	4.13	4.35	11.47	6.31	6.31
Debt over Equity	-2.06	-2.7	-3.43	-4.11	-36.54	-184.06	4.8	7.8	58.07	-39.07	-39.07
Growth Stability	-	-	-	100%	100%	41%	100%	100%	100%	100%	41%

Bad Debt/FCF ratio (6.31)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Good Debt/Equity ratio (-39.07)

The company is not overleveraged and has a good balance between equity and debt.

Bad Graham’s Stability (41%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	12/2024	CAGR 5Y
Revenue YoY growth	-	8%	9%	3%	7%	-31%	38%	31%	10%	3%	17%
Earnings YoY growth	-	9%	-18%	89%	3%	-66%	284%	15%	-22%	16%	22%
Equity YoY growth	-	-21%	-32%	-13%	-87%	-76%	-5K%	-42%	-77%	-227%	-12%
FCF YoY growth	-	-4%	84%	-17%	9%	-64%	305%	-10%	-35%	55%	12%