One-glance verdict
Within fair range
$96.60 our estimate vs market $108.95
Wall Street consensus: $114.65 (18.7% higher than our fair-value estimate)
13% above our estimate
Fundamentals snapshot
Choice Hotels International, Inc.
CHH · NYQ · Consumer Cyclical · Lodging
Current price
$108.95
52-week range
$84.04 - $123.82
Market cap
$4.96B
Balance sheet
Distressed
4.97x Stretched
Net debt $2.06B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 1.4% last year.
- Reward Returns 566.4% on equity, ahead of 50% of its peers.
- Reward Free cash flow was positive in 10/10 years.
- Risk Net debt grew 59.0% over 3 years.
What this company does
Choice Hotels International, Inc.
Choice Hotels International, Inc. is like a landlord for many different hotel brands, such as Comfort Inn and Quality Inn, and they make most of their money by charging these hotels fees for using their brand names and for help with things like booking guests. This business model is important because it means they don't have to own all the hotels themselves, which can lead to steady profits (recurring revenue, meaning money that comes in regularly).
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$92.56M
FY2024 Q4
$57.35M
FY2025 Q1
$-14.99M
FY2025 Q2
$65.39M
FY2025 Q3
$49.06M
FY2025 Q4
$64.13M
FY2026 Q1
$-39.99M
FY2026 Q2
$80.06M
Revenue
$440.76M
Net income
$64.34M
Diluted EPS
1.41
Operating cash flow
$90.54M
Free cash flow
$80.06M
Fetching…
Sources
Revenue
$340.57M
Net income
$20.30M
Diluted EPS
0.44
Operating cash flow
$-23.17M
Free cash flow
$-39.99M
Fetching…
Sources
Revenue
$390.15M
Net income
$63.68M
Diluted EPS
1.35
Operating cash flow
$85.69M
Free cash flow
$64.13M
Fetching…
Sources
Revenue
$447.34M
Net income
$180.00M
Diluted EPS
3.86
Operating cash flow
$68.69M
Free cash flow
$49.06M
Fetching…
Sources
Revenue
$426.44M
Net income
$81.73M
Diluted EPS
1.75
Operating cash flow
$95.60M
Free cash flow
$65.39M
Fetching…
Sources
Revenue
$332.86M
Net income
$44.53M
Diluted EPS
0.94
Operating cash flow
$20.47M
Free cash flow
$-14.99M
Fetching…
Sources
Revenue
$389.77M
Net income
$75.80M
Diluted EPS
1.56
Operating cash flow
$82.86M
Free cash flow
$57.35M
Fetching…
Sources
Revenue
$427.96M
Net income
$105.72M
Diluted EPS
2.22
Operating cash flow
$122.94M
Free cash flow
$92.56M
Fetching…
Sources
Is it cheap or expensive?
Fair value $96.60 vs current price $108.95
Wall Street consensus is the average analyst price target: $114.65 (18.7% higher than our fair-value estimate).
Our most-likely fair value is $96.60 a share — about 11.3% away from today's price of $108.95, so the stock currently looks fairly priced.
Is it drowning in debt?
Distressed
Net debt $2.1B. Interest coverage 5.0x.
Net debt
$2.06B
Interest coverage
4.97x
Choice Hotels International, Inc.'s profit covers its interest bill about 5.0 times over. which is stronger than most peers shown here.
Distressed
Worse cushion
Baseline
Better cushion
CHH
BASELINE
Choice Hotels International, Inc.
Total debt $2.11B Interest coverage 4.97x This is the baseline the peer rows are being compared against.
Total debt $17.77B Interest coverage 5.12x +3% vs CHH Has roughly the same debt cushion as CHH.
Total debt $14.02B Interest coverage 4.34x -13% vs CHH Has roughly the same debt cushion as CHH.
Total debt $2.73B Interest coverage 3.46x -30% vs CHH Carries about 1.4x less debt cushion than CHH.
What you should know
The case for and against CHH
3 Rewards
1 Risk
Rewards
-
Revenue grew 1.4% last year.
-
Returns 566.4% on equity, ahead of 50% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
-
Net debt grew 59.0% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
15.39x
Forward P/E
14.45x
P/B
34.31x
P/S
4.93x
EV/EBITDA
14.56x
PEG ratio
1.88x
Profitability
How much profit each dollar creates
Gross margin
90.3%
Operating margin
37.7%
Net margin
32.6%
ROE
566.4%
ROA
9.2%
Health
Liquidity and balance-sheet strength
Debt / equity
14.82x
Current ratio
0.93x
Quick ratio
0.71x
Total debt
$2.11B
Total cash
$42.83M
Growth
How the business has been compounding
Revenue TTM
$1.62B
Revenue 5Y CAGR
10.5%
EPS TTM
7.08
EPS 5Y CAGR
9.7%
Cash flow
How much cash the business throws off
Operating CF TTM
$221.74M
Free CF TTM
$163.58M
FCF margin
10.1%
Dividend
Shareholder payout
Yield
1.1%
Payout ratio
16.2%
Last ex-div date
2026-10-01