CHH Stock Analysis: Choice Hotels International | NYSE
Lodging | NYSE, USA | Market Cap: 4.530m USD | 12M Return: 3.7% | US1699051066 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 56.8M
EPS Trend: 77.5%
Qual. Beats: 0
Rev. Trend: 95.3%
Qual. Beats: 0
Warnings
Tailwinds
No distinct edge detected
Seasonality 11.7 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Choice Hotels International (CHH) is a leading global hotel franchisor headquartered in North Bethesda, Maryland, operating since 1939 and publicly traded on the NYSE since 1997. The company functions under a capital-light franchise business model, generating revenue primarily through licensing fees, royalty payments, and marketing contributions from property owners rather than owning the underlying real estate. Its operations are organized into two reportable segments: Hotel Franchising & Management and Corporate & Other.
Choice Hotels manages a diverse portfolio of more than 20 brands across multiple market tiers, including economy names like Econo Lodge and Rodeway Inn, midscale offerings such as Comfort Inn and Quality, and upper-midscale to upscale collections like Cambria Hotels and the Radisson family of brands. The Radisson Americas acquisition, completed in 2022, significantly expanded the companys international footprint and upscale presence. As part of the Consumer Discretionary sector, the company is inherently tied to travel demand and economic cycles, with occupancy rates and RevPAR (revenue per available room) serving as key industry performance indicators.
- Radisson Americas integration expands upscale royalty fee base
- Extended stay brand pipeline accelerates unit growth and high-margin royalty revenue
- Wyndham hostile takeover attempt resolved, capital allocation refocuses on buybacks
| Net Income: 328.1m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.04 > 0.02 and ΔFCF/TA -2.18 > 1.0 |
| NWC/Revenue: -2.13% < 20% (prev -3.25%; Δ 1.12% < -1%) |
| CFO/TA 0.07 > 3% & CFO 221.7m > Net Income 328.1m |
| Net Debt (2.17b) to EBITDA (604.4m): 3.59 < 3 |
| Current Ratio: 0.93 > 1.5 & < 3 |
| Outstanding Shares: last quarter (45.4m) vs 12m ago -2.57% < -2% |
| Gross Margin: 44.99% > 18% (prev 47.40%; Δ -2.41% > 0.5%) |
| Asset Turnover: 57.27% > 50% (prev 59.18%; Δ -1.91% > 0%) |
| Interest Coverage Ratio: 5.13 > 6 (EBIT TTM 489.2m / Interest Expense TTM 95.4m) |
| A: -0.01 (Total Current Assets 431.9m - Total Current Liabilities 466.5m) / Total Assets 2.99b |
| B: 0.80 (Retained Earnings 2.38b / Total Assets 2.99b) |
| C: 0.17 (EBIT TTM 489.2m / Avg Total Assets 2.83b) |
| D: 0.05 (Book Value of Equity 142.2m / Total Liabilities 2.85b) |
| Altman-Z'' = 3.73 = AA |
| DSRI: 1.11 (Receivables 344.3m/301.3m, Revenue 1.62b/1.58b) |
| GMI: 1.05 (GM 47.40% / 44.99%) |
| AQI: 1.07 (AQ_t 0.61 / AQ_t-1 0.57) |
| SGI: 1.03 (Revenue 1.62b / 1.58b) |
| TATA: 0.04 (NI 328.1m - CFO 221.7m) / TA 2.99b) |
| Beneish M = -2.82 (Cap -4..+1) = A |
As of October 13, 2026, the stock is trading at USD 103.38 with a total of 483,578 shares traded. Over the past week, the price has changed by +3.82%, over one month by +7.39%, over three months by -4.66% and over the past year by +3.73%.
Current recommended Stop Loss: 97.30 (which is 5.9% or 1.9 ATR below the current price).
Choice Hotels International has received a consensus analysts rating of 2.94. Therefore, it is recommended to hold CHH.
- StrongBuy: 2
- Buy: 1
- Hold: 9
- Sell: 2
- StrongSell: 2
| Analysts Target Price | 114.6 | 10.9% |
P/E Trailing = 14.065
P/E Forward = 12.6743
P/S = 4.5027
P/B = 32.1757
P/EG = 1.7613
Revenue TTM = 1.62b USD
EBIT TTM = 489.2m USD
EBITDA TTM = 604.4m USD
Long Term Debt = 2.00b USD (from longTermDebt, last quarter)
Short Term Debt = 8.36m USD (from shortTermDebt, last fiscal year)
Debt = 2.21b USD (from shortLongTermDebtTotal, last quarter) + Leases 104.3m
Net Debt = 2.17b USD (calculated: Debt 2.21b - CCE 42.8m)
Enterprise Value = 6.70b USD (4.53b + Debt 2.21b - CCE 42.8m)
Interest Coverage Ratio = 5.13 (Ebit TTM 489.2m / Interest Expense TTM 95.4m)
EV/FCF = 60.07x (Enterprise Value 6.70b / FCF TTM 111.5m)
FCF Yield = 1.66% (FCF TTM 111.5m / Enterprise Value 6.70b)
FCF Margin = 6.89% (FCF TTM 111.5m / Revenue TTM 1.62b)
Net Margin = 20.27% (Net Income TTM 328.1m / Revenue TTM 1.62b)
Gross Margin = 44.99% ((Revenue TTM 1.62b - Cost of Revenue TTM 890.6m) / Revenue TTM)
Gross Margin QoQ = 49.38% (prev 35.67%)
Tobins Q-Ratio = 2.24 (Enterprise Value 6.70b / Total Assets 2.99b)
Interest Expense / Debt = 4.31% (Interest Expense 95.4m / Debt 2.21b)
Taxrate = 18.88% (76.4m / 404.7m)
NOPAT = 396.9m (EBIT 489.2m * (1 - 18.88%))
Current Ratio = 0.93 (Total Current Assets 431.9m / Total Current Liabilities 466.5m)
Debt / Equity = 15.55 (Debt 2.21b / totalStockholderEquity, last quarter 142.2m)
Debt / EBITDA = 3.59 (Net Debt 2.17b / EBITDA 604.4m)
Debt / FCF = 19.44 (Net Debt 2.17b / FCF TTM 111.5m)
Total Stockholder Equity = 152.7m (last 4 quarters mean from totalStockholderEquity)
RoA = 11.61% (Net Income 328.1m / Total Assets 2.99b)
RoE = 214.9% (Net Income TTM 328.1m / Total Stockholder Equity 152.7m)
RoCE = 22.70% (EBIT 489.2m / Capital Employed (Equity 152.7m + L.T.Debt 2.00b))
RoIC = 15.95% (NOPAT 396.9m / Invested Capital 2.49b)
WACC = 6.09% (E(4.53b)/V(6.74b) * Re(7.36%) + D(2.21b)/V(6.74b) * Rd(4.31%) * (1-Tc(0.19)))
Discount Rate = 7.36% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -92.11 | Cagr: -3.90%
[DCF] Terminal Value 73.10% ; FCFF base≈129.9m ; Y1≈113.9m ; Y5≈92.1m
[DCF] Fair Price = N/A (negative equity: EV 1.48b - Net Debt 2.17b = -690.5m; debt exceeds intrinsic value)
EPS Correlation: 77.51 | EPS CAGR: 4.96% | SUE: 0.31 | # QB: 0
Revenue Correlation: 95.34 | Revenue CAGR: 1.79% | SUE: 0.68 | # QB: 0
EPS current Quarter (2026-09-30): EPS=2.28 | Chg30d=+0.07% | Revisions=-38% | Analysts=12
EPS current Year (2026-12-31): EPS=7.01 | Chg30d=-0.03% | Revisions=-44% | GrowthEPS=+1.1% | GrowthRev=+2.2%
EPS next Year (2027-12-31): EPS=7.58 | Chg30d=+0.73% | Revisions=+44% | GrowthEPS=+8.0% | GrowthRev=+3.4%
[Analyst] Revisions Ratio: -15% (up=7, down=10)