NYSE
CHH
Last Price
US $108.32
KEY FIGURES
MKT CAP
$4.9B
EPS
TTM
$7.49
PEG
TTM
1.14x
P/E
TTM
14.46x
P/S
TTM
3.12x
YIELD
1.06%
GROWTH
Revenue Y/Y
15.58%
(FY vs FY)
EBITDA Y/Y
Cash Flow (DCF)
Fair Value
Market $108.32
-97.46%
Default assumptions
EBITDA Multiple
Fair Value
Market $108.32
-49.53%
Default assumptions
Valuation
Financial
Performance
Financial risk - Cash flow debt coverage.
Choice Hotels International, Inc. cash flow to debt ratio of 12.69% indicates that the company cannot generate enough cash to cover its debt over time. This level indicates weak financial health.
Financial risk - Healthy cash flow growth.
Choice Hotels International, Inc.'s free cash flow has decreased -28.18% from $173.55M last year to $124.65M, signaling decreasing performance
Financial risk - Healthy debt to equity ratio.
Choice Hotels International, Inc.'s debt to equity ratio is 15.35, which means that the company's assets are unhealthy financed, signaling financial risk. READ MORE: A ratio over 0.60 means the company finances its assets with debt, signaling financial risk. If ratio is negative, the company spent its own equity and risks bankruptcy
Financial risk - Healthy debt to equity ratio development.
Choice Hotels International, Inc.'s debt has increased relative to shareholder equity from -41.69 last year to 15.35 today, signaling weakened financials
Financial risk - Net debt/EBITDA.
Choice Hotels International, Inc. has a net debt to EBITDA ratio of 3.16x, which exceeds the 3.00x threshold, indicating high leverage and potential financial risk
Financial stability - ICR.
Choice Hotels International, Inc.'s interest coverage ratio of 4.61 indicates that earnings with good margin can cover interest payments on company debt
Financial stability - Profit margin growth.
Choice Hotels International, Inc.'s profit margin has increased (13.95%) in the last year from 18.91% to 21.55%, signaling increasing performance
Financial risk - Short term assets vs short term liabilities.
Choice Hotels International, Inc.'s short-term liabilities of $467.29M exceed its short-term assets of $406.00M, signaling financial risk
Increasing performance - ROA.
Choice Hotels International, Inc.'s return on assets of 11.74% is higher than the 5.00% threshold, indicating efficient asset utilization
Increasing performance - Absolute return on equity.
Choice Hotels International, Inc.'s return on equity of 312.73%, is higher than 15.00%, indicating good performance
Decreasing performance - Earnings quality.
Choice Hotels International, Inc.'s operating cash flow is lower than its net income, indicating that earnings may not be fully backed by cash generation
Increasing performance - Earnings stability.
Choice Hotels International, Inc. had positive net income in 5.00 out of 5 years, indicating stable and consistent earnings
Increasing performance - Free cash flow.
Choice Hotels International, Inc. has positive free cash flow, indicating the company generates cash after capital expenditures
Increasing performance - FCF yield.
Choice Hotels International, Inc. has a free cash flow yield of 2.53%, which is above the 2.00% threshold, indicating strong cash generation relative to market value
Increasing performance - Healthy earnings growth.
Choice Hotels International, Inc.'s yearly earnings has increased 23.45% since last year from $299.67M to $369.95M, signaling increasing performance
Increasing performance - Healthy revenue growth.
Choice Hotels International, Inc.'s yearly revenue has increased 0.75% since last year from $1.58G to $1.60G, signaling increasing performance
Increasing performance - ROIC.
ROIC 13.95% (Source: FMP key-metrics). At or above the 10% threshold. Score: 2 of 2. The company is generating returns above the upper end of the typical US weighted-average cost of capital range under this definition of invested capital.
Increasing performance - 3-year revenue CAGR.
Choice Hotels International, Inc.'s 3-year revenue CAGR of 4.43% is positive, indicating growing revenue over the past 3 years
Increasing performance - Revenue consistency.
Choice Hotels International, Inc. had revenue growth in 5.00 out of 5 years, indicating consistent revenue performance
Increasing performance - ROE consistency.
Choice Hotels International, Inc. had positive ROE in 4.00 out of 5 years, indicating consistent and reliable returns on equity
Overvalued - DCF valuation.
Choice Hotels International, Inc. is overvalued relative to its fair value price of 2.75 based on Discounted Cash Flow model
Undervalued - Earnings yield.
Choice Hotels International, Inc. has an earnings yield of 6.92%, which is above the 4.00% threshold, indicating the stock offers reasonable value relative to its earnings
Overvalued - EBITDA valuation.
Choice Hotels International, Inc. is overvalued relative to its fair value price of 54.67 based on EBITDA multiple model
Undervalued - EV/EBITDA.
Choice Hotels International, Inc. has an EV/EBITDA ratio of 10.64x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings
Overvalued - PEG ratio value.
Choice Hotels International, Inc. has a PEG-ratio over 1 which is considered overvalued
Overvalued - P/B ratio.
Choice Hotels International, Inc. has a price-to-book ratio of 36.37x, which exceeds the 5.00x threshold, indicating the stock may be overvalued relative to its book value
Undervalued - P/S ratio.
Choice Hotels International, Inc. has a price-to-sales ratio of 3.12x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue
Profit margin
Current Ratio
Capital Returns
312.73%
Return on equity
ROIC: 13.95%
Valuation History
14.7X
Price to Earnings
EV/EBITDA: 11.4X
Cash flow
Profit margin
34.37%
(FY vs FY)
Cash flow Y/Y
10.67%
(FY vs FY)
Base valuations use default assumptions. Customize in the Valuator.