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Choice Hotels International, Inc. (CHH) Stock Verdict & Ratings | Investment Bastion

Stock Verdict·Updated today

Choice Hotels International, Inc.

CHHMarket cap $4.68BPrice $104.8

Country🇺🇸United States

SectorConsumer

IndustryHotels & Leisure

Franchises budget-to-midscale hotel brands like Comfort Inn and Quality Inn, running over 7,000 properties without owning most of the real estate. It profits mainly from franchise fees, not room revenue.

In Bastion Portfolios?

52W Return+6%Global Market +16%?

01Key Ratings

How does this stock score across Bastion factors?

Growth

Historical Revenue

Rev CAGR (3y)+13%8

Revenue Forecast

Rev CAGR (1y)+3%3

Rev CAGR (3y)+3%2

Rev CAGR (5y)+6%5

Earnings Forecast

EPS Growth Y+1+15%7

EPS Growth Y+2+3%5

EPS Growth Y+3+7%6

Quality

Margins

EBIT Margin41%10

Net Income Margin33%9

Free Cash Flow Margin11%6

Debt

Net Debt/EBITDA4.32

Efficiency

ROE460%10

ROA12%9

Earnings Stability88

GEAR+AVERAGE60

Overall rating across all five factors

Value

Price Multiples

P/E Ratio (Forward)146

P/E Ratio (Forward 3y)136

P/BV32.91

EV Multiples

EV/EBITDA Fwd106

EV/EBIT Fwd165

Yield

Free Cash Flow Yield2.5%4

Dividend Yield1.1%3

Momentum

Short term

1 month return+6%9

3 month return-4%5

YTD return+11%7

Mid term

Price vs 52wHigh85%7

1 year return+6%5

Long term

3 year return-11%2

5 year return-19%3

Risk Shield

Price Risk

Beta0.67

Volatility38%5

Free Cash Flow

Free Cash Flow Margin11%6

Free Cash Flow Yield2.5%4

Quality

ROCE17%8

Earnings Stability88

Net Debt/EBITDA4.32

02Growth

Is it actually growing, and how fast?

CHHChoice Hotels International

Revenue FY25$1.6B

GROWTH RATING↗

WEAK31 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR+13%8

Revenue, next 1Y+3%3

Revenue, next 3Y, CAGR+3%2

Revenue, next 5Y, CAGR+6%5

EARNINGS FORECAST▾SCORE

EPS growth, FY26E+15%7

EPS growth, FY27E+3%5

EPS growth, FY28E+7%6

GROWTH ASSESSMENT

STRENGTHS

Revenue grew 13%/yr over the last 3 years, ahead of 70% of companies worldwide.8/10

Earnings are set to grow in step with sales (EPS about 7%/yr vs revenue 3%/yr).

WATCH

Revenue grew 13%/yr over the last 3 years; forecasts see it cooling to 3%/yr.

Over five years revenue is set to grow 6%/yr, about average versus companies worldwide.5/10

WEAKNESSES

Growth is the weak spot here, trailing 69% of companies worldwide.

Revenue is set to grow 3%/yr over the next 3 years, behind most of the market.3/10

BOTTOM LINE

Margin Expander

Growth is a weak point here: a business that is slowing. The one thing to watch: forward revenue growth trails the market.

03Price Momentum

Is the market behind it right now?

MOMENTUM RATING↗

AVERAGE43 / 100

SHORT-TERM RETURNS▾SCORE

1-month return+6%9

3-month return-4%5

YTD return+11%7

MID & LONG-TERM▾SCORE

% of 52-week high85%7

1-year return+6%5

3-year return-11%2

5-year return-19%3

MOMENTUM ASSESSMENT

STRENGTHS

Strong recent results. The stock is outperforming over the past month (+6%) and so far this year (+11%).

WATCH

It's up 6% over the past year, but 15% below its 52-week high. That is a touch ahead of the market.

Returns sit at the market level over three months (-4%).

WEAKNESSES

Weak long-term results. It has been a disappointing long-term hold (-11% over three years and -19% over five), behind 70% of the market.

BOTTOM LINE

Early Turnaround

A poor multi-year track record but a sharp recent rally. Momentum is turning up, yet the trend is young and unproven — it needs follow-through to confirm rather than fade. The one thing to watch: the multi-year record is weak.

04Value

Are you paying a fair price for it?

Stop guessing on Choice Hotels International, Inc.. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

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02Growth

Is it actually growing, and how fast?

CHHChoice Hotels International

Revenue FY25$1.6B

GROWTH RATING↗

WEAK31 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR+13%8

Revenue, next 1Y+3%3

Revenue, next 3Y, CAGR+3%2

Revenue, next 5Y, CAGR+6%5

EARNINGS FORECAST▾SCORE

EPS growth, FY26E+15%7

EPS growth, FY27E+3%5

EPS growth, FY28E+7%6

GROWTH ASSESSMENT

STRENGTHS

Revenue grew 13%/yr over the last 3 years, ahead of 70% of companies worldwide.8/10

Earnings are set to grow in step with sales (EPS about 7%/yr vs revenue 3%/yr).

WATCH

Revenue grew 13%/yr over the last 3 years; forecasts see it cooling to 3%/yr.

Over five years revenue is set to grow 6%/yr, about average versus companies worldwide.5/10

WEAKNESSES

Growth is the weak spot here, trailing 69% of companies worldwide.

Revenue is set to grow 3%/yr over the next 3 years, behind most of the market.3/10

BOTTOM LINE

Margin Expander

Growth is a weak point here: a business that is slowing. The one thing to watch: forward revenue growth trails the market.

03Price Momentum

Is the market behind it right now?

MOMENTUM RATING↗

AVERAGE43 / 100

SHORT-TERM RETURNS▾SCORE

1-month return+6%9

3-month return-4%5

YTD return+11%7

MID & LONG-TERM▾SCORE

% of 52-week high85%7

1-year return+6%5

3-year return-11%2

5-year return-19%3

MOMENTUM ASSESSMENT

STRENGTHS

Strong recent results. The stock is outperforming over the past month (+6%) and so far this year (+11%).

WATCH

It's up 6% over the past year, but 15% below its 52-week high. That is a touch ahead of the market.

Returns sit at the market level over three months (-4%).

WEAKNESSES

Weak long-term results. It has been a disappointing long-term hold (-11% over three years and -19% over five), behind 70% of the market.

BOTTOM LINE

Early Turnaround

04Value

Are you paying a fair price for it?

Stop guessing on Choice Hotels International, Inc.. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

✓
Stock VerdictValuation and investment strategy for 4,000+ stocks. Days of hedge fund analyst research, done in 2 minutes.
✓
RadarFind your next investment idea: top-ranked stocks across all 9 Bastion strategies.
✓
Portfolio ManagerCheck if Bastion algorithms added the stock you care about to their portfolios.

Secure via Stripe

Trusted by 1,000+ investors in our community