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GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 8/10

vs
industry
vs
history
Cash to Debt 0.29
CHH's Cash to Debt is ranked lower than
66% of the 791 Companies
in the Global Lodging industry.

( Industry Median: 0.76 vs. CHH: 0.29 )
Ranked among companies with meaningful Cash to Debt only.
CHH' s 10-Year Cash to Debt Range
Min: 0.01  Med: 0.13 Max: N/A
Current: 0.29
Equity to Asset -0.55
CHH's Equity to Asset is ranked lower than
99% of the 725 Companies
in the Global Lodging industry.

( Industry Median: 0.52 vs. CHH: -0.55 )
Ranked among companies with meaningful Equity to Asset only.
CHH' s 10-Year Equity to Asset Range
Min: -1.18  Med: -0.31 Max: 0.32
Current: -0.55
-1.18
0.32
Interest Coverage 5.17
CHH's Interest Coverage is ranked lower than
69% of the 475 Companies
in the Global Lodging industry.

( Industry Median: 20.86 vs. CHH: 5.17 )
Ranked among companies with meaningful Interest Coverage only.
CHH' s 10-Year Interest Coverage Range
Min: 4.5  Med: 8.66 Max: 33.55
Current: 5.17
4.5
33.55
F-Score: 6
Z-Score: 5.06
M-Score: -2.62
WACC vs ROIC
10.30%
89.56%
WACC
ROIC
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 8/10

vs
industry
vs
history
Operating margin (%) 26.93
CHH's Operating margin (%) is ranked higher than
88% of the 780 Companies
in the Global Lodging industry.

( Industry Median: 7.22 vs. CHH: 26.93 )
Ranked among companies with meaningful Operating margin (%) only.
CHH' s 10-Year Operating margin (%) Range
Min: 21.55  Med: 28.90 Max: 58.55
Current: 26.93
21.55
58.55
Net-margin (%) 15.11
CHH's Net-margin (%) is ranked higher than
79% of the 782 Companies
in the Global Lodging industry.

( Industry Median: 5.01 vs. CHH: 15.11 )
Ranked among companies with meaningful Net-margin (%) only.
CHH' s 10-Year Net-margin (%) Range
Min: 4.2  Med: 17.79 Max: 35.4
Current: 15.11
4.2
35.4
ROA (%) 18.47
CHH's ROA (%) is ranked higher than
94% of the 797 Companies
in the Global Lodging industry.

( Industry Median: 2.88 vs. CHH: 18.47 )
Ranked among companies with meaningful ROA (%) only.
CHH' s 10-Year ROA (%) Range
Min: 3.56  Med: 24.83 Max: 39.67
Current: 18.47
3.56
39.67
ROC (Joel Greenblatt) (%) 289.54
CHH's ROC (Joel Greenblatt) (%) is ranked higher than
95% of the 790 Companies
in the Global Lodging industry.

( Industry Median: 9.69 vs. CHH: 289.54 )
Ranked among companies with meaningful ROC (Joel Greenblatt) (%) only.
CHH' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: 84.88  Med: 317.68 Max: 664.02
Current: 289.54
84.88
664.02
Revenue Growth (3Y)(%) 6.30
CHH's Revenue Growth (3Y)(%) is ranked higher than
62% of the 597 Companies
in the Global Lodging industry.

( Industry Median: 3.30 vs. CHH: 6.30 )
Ranked among companies with meaningful Revenue Growth (3Y)(%) only.
CHH' s 10-Year Revenue Growth (3Y)(%) Range
Min: 2.1  Med: 12.70 Max: 49.7
Current: 6.3
2.1
49.7
EBITDA Growth (3Y)(%) 8.30
CHH's EBITDA Growth (3Y)(%) is ranked higher than
60% of the 482 Companies
in the Global Lodging industry.

( Industry Median: 3.90 vs. CHH: 8.30 )
Ranked among companies with meaningful EBITDA Growth (3Y)(%) only.
CHH' s 10-Year EBITDA Growth (3Y)(%) Range
Min: -7  Med: 8.30 Max: 34.2
Current: 8.3
-7
34.2
EPS Growth (3Y)(%) 3.40
CHH's EPS Growth (3Y)(%) is ranked lower than
56% of the 430 Companies
in the Global Lodging industry.

( Industry Median: 8.50 vs. CHH: 3.40 )
Ranked among companies with meaningful EPS Growth (3Y)(%) only.
CHH' s 10-Year EPS Growth (3Y)(%) Range
Min: -26.9  Med: 8.00 Max: 89
Current: 3.4
-26.9
89
» CHH's 10-Y Financials

Financials


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

Q3 2014

CHH Guru Trades in Q3 2014

Jim Simons 223,700 sh (+5.07%)
Ron Baron 5,613,782 sh (-1.15%)
Murray Stahl 15,882 sh (-5.28%)
Columbia Wanger 1,291,713 sh (-17.08%)
Joel Greenblatt 51,453 sh (-50.07%)
» More
Q4 2014

CHH Guru Trades in Q4 2014

Jim Simons 252,400 sh (+12.83%)
Ron Baron 5,612,787 sh (-0.02%)
Murray Stahl 14,888 sh (-6.26%)
Columbia Wanger 1,022,013 sh (-20.88%)
Joel Greenblatt 8,858 sh (-82.78%)
» More
Q1 2015

CHH Guru Trades in Q1 2015

Ken Heebner 138,000 sh (New)
Jim Simons 295,100 sh (+16.92%)
Ron Baron 5,662,987 sh (+0.89%)
Ron Baron 5,603,525 sh (-0.17%)
Columbia Wanger 997,013 sh (-2.45%)
Murray Stahl 13,286 sh (-10.76%)
Joel Greenblatt 7,718 sh (-12.87%)
» More
Q2 2015

CHH Guru Trades in Q2 2015

Ken Heebner 178,000 sh (+28.99%)
Murray Stahl 16,461 sh (+23.90%)
Jim Simons 348,000 sh (+17.93%)
Joel Greenblatt 8,550 sh (+10.78%)
Ron Baron 5,467,573 sh (-2.43%)
Columbia Wanger 970,125 sh (-2.70%)
» More
» Details

Insider Trades

Latest Guru Trades with CHH

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Guru Investment Theses on Choice Hotels International Inc

Baron Funds Comments on Choice Hotels International Inc. - Aug 18, 2015

Choice Hotels International, Inc. (NYSE:CHH), a franchisor of economy hotels, decreased in the quarter as slightly slower-than-expected growth in RevPAR (revenue per available room) and a high multiple led to investor sales. However, we still believe the company has growth potential with its recent revamp of its Comfort Inn brand, continuing increases in RevPAR, and stronger unit growth in the various Choice hotel brands. Choice’s “asset light” business model continues to generate strong cash flow, which the company uses to invest in growth initiatives and repurchase shares.



From Baron Funds' second quarter commentary.



Check out Ron Baron latest stock trades

Top Ranked Articles about Choice Hotels International Inc

Baron Funds Comments on Choice Hotels International Inc.
Choice Hotels International, Inc. (NYSE:CHH), a franchisor of economy hotels, decreased in the quarter as slightly slower-than-expected growth in RevPAR (revenue per available room) and a high multiple led to investor sales. However, we still believe the company has growth potential with its recent revamp of its Comfort Inn brand, continuing increases in RevPAR, and stronger unit growth in the various Choice hotel brands. Choice’s “asset light” business model continues to generate strong cash flow, which the company uses to invest in growth initiatives and repurchase shares. Read more...

Ratios

vs
industry
vs
history
P/E(ttm) 24.20
CHH's P/E(ttm) is ranked lower than
53% of the 537 Companies
in the Global Lodging industry.

( Industry Median: 21.20 vs. CHH: 24.20 )
Ranked among companies with meaningful P/E(ttm) only.
CHH' s 10-Year P/E(ttm) Range
Min: 11.89  Med: 21.26 Max: 42.41
Current: 24.2
11.89
42.41
Forward P/E 21.01
CHH's Forward P/E is ranked lower than
62% of the 252 Companies
in the Global Lodging industry.

( Industry Median: 16.95 vs. CHH: 21.01 )
Ranked among companies with meaningful Forward P/E only.
N/A
PE(NRI) 24.20
CHH's PE(NRI) is ranked lower than
53% of the 534 Companies
in the Global Lodging industry.

( Industry Median: 21.40 vs. CHH: 24.20 )
Ranked among companies with meaningful PE(NRI) only.
CHH' s 10-Year PE(NRI) Range
Min: 11.91  Med: 21.34 Max: 42.38
Current: 24.2
11.91
42.38
P/S 3.66
CHH's P/S is ranked lower than
74% of the 780 Companies
in the Global Lodging industry.

( Industry Median: 1.70 vs. CHH: 3.66 )
Ranked among companies with meaningful P/S only.
CHH' s 10-Year P/S Range
Min: 1.99  Med: 3.69 Max: 7.94
Current: 3.66
1.99
7.94
PFCF 23.20
CHH's PFCF is ranked lower than
58% of the 381 Companies
in the Global Lodging industry.

( Industry Median: 17.74 vs. CHH: 23.20 )
Ranked among companies with meaningful PFCF only.
CHH' s 10-Year PFCF Range
Min: 10.37  Med: 18.98 Max: 32.06
Current: 23.2
10.37
32.06
POCF 18.98
CHH's POCF is ranked lower than
69% of the 536 Companies
in the Global Lodging industry.

( Industry Median: 11.47 vs. CHH: 18.98 )
Ranked among companies with meaningful POCF only.
CHH' s 10-Year POCF Range
Min: 9.47  Med: 16.88 Max: 30.3
Current: 18.98
9.47
30.3
EV-to-EBIT 16.14
CHH's EV-to-EBIT is ranked higher than
55% of the 588 Companies
in the Global Lodging industry.

( Industry Median: 17.13 vs. CHH: 16.14 )
Ranked among companies with meaningful EV-to-EBIT only.
CHH' s 10-Year EV-to-EBIT Range
Min: 7.9  Med: 15.80 Max: 27.3
Current: 16.14
7.9
27.3
PEG 3.27
CHH's PEG is ranked lower than
70% of the 217 Companies
in the Global Lodging industry.

( Industry Median: 1.52 vs. CHH: 3.27 )
Ranked among companies with meaningful PEG only.
CHH' s 10-Year PEG Range
Min: 0.64  Med: 3.80 Max: 42.93
Current: 3.27
0.64
42.93
Shiller P/E 24.63
CHH's Shiller P/E is ranked higher than
52% of the 342 Companies
in the Global Lodging industry.

( Industry Median: 24.97 vs. CHH: 24.63 )
Ranked among companies with meaningful Shiller P/E only.
CHH' s 10-Year Shiller P/E Range
Min: 13.73  Med: 22.84 Max: 65.87
Current: 24.63
13.73
65.87
Current Ratio 1.97
CHH's Current Ratio is ranked higher than
68% of the 738 Companies
in the Global Lodging industry.

( Industry Median: 1.35 vs. CHH: 1.97 )
Ranked among companies with meaningful Current Ratio only.
CHH' s 10-Year Current Ratio Range
Min: 0.34  Med: 0.77 Max: 3.21
Current: 1.97
0.34
3.21
Quick Ratio 1.97
CHH's Quick Ratio is ranked higher than
74% of the 738 Companies
in the Global Lodging industry.

( Industry Median: 1.13 vs. CHH: 1.97 )
Ranked among companies with meaningful Quick Ratio only.
CHH' s 10-Year Quick Ratio Range
Min: 0.34  Med: 0.77 Max: 3.21
Current: 1.97
0.34
3.21
Days Sales Outstanding 53.75
CHH's Days Sales Outstanding is ranked lower than
73% of the 632 Companies
in the Global Lodging industry.

( Industry Median: 25.01 vs. CHH: 53.75 )
Ranked among companies with meaningful Days Sales Outstanding only.
CHH' s 10-Year Days Sales Outstanding Range
Min: 18.9  Med: 28.95 Max: 70.58
Current: 53.75
18.9
70.58

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield 1.51
CHH's Dividend Yield is ranked lower than
64% of the 780 Companies
in the Global Lodging industry.

( Industry Median: 2.20 vs. CHH: 1.51 )
Ranked among companies with meaningful Dividend Yield only.
CHH' s 10-Year Dividend Yield Range
Min: 0.86  Med: 1.82 Max: 3.35
Current: 1.51
0.86
3.35
Dividend Payout 0.36
CHH's Dividend Payout is ranked higher than
71% of the 439 Companies
in the Global Lodging industry.

( Industry Median: 0.44 vs. CHH: 0.36 )
Ranked among companies with meaningful Dividend Payout only.
CHH' s 10-Year Dividend Payout Range
Min: 0.22  Med: 0.40 Max: 0.71
Current: 0.36
0.22
0.71
Dividend growth (3y) 0.40
CHH's Dividend growth (3y) is ranked lower than
59% of the 254 Companies
in the Global Lodging industry.

( Industry Median: 6.30 vs. CHH: 0.40 )
Ranked among companies with meaningful Dividend growth (3y) only.
CHH' s 10-Year Dividend growth (3y) Range
Min: 0  Med: 0.00 Max: 13.5
Current: 0.4
0
13.5
Yield on cost (5-Year) 1.53
CHH's Yield on cost (5-Year) is ranked lower than
65% of the 785 Companies
in the Global Lodging industry.

( Industry Median: 2.46 vs. CHH: 1.53 )
Ranked among companies with meaningful Yield on cost (5-Year) only.
CHH' s 10-Year Yield on cost (5-Year) Range
Min: 0.87  Med: 1.84 Max: 3.38
Current: 1.53
0.87
3.38
Share Buyback Rate 0.40
CHH's Share Buyback Rate is ranked higher than
79% of the 444 Companies
in the Global Lodging industry.

( Industry Median: -1.20 vs. CHH: 0.40 )
Ranked among companies with meaningful Share Buyback Rate only.
CHH' s 10-Year Share Buyback Rate Range
Min: 11.7  Med: 3.30 Max: 0.4
Current: 0.4

Valuation & Return

vs
industry
vs
history
Price/Projected FCF 3.11
CHH's Price/Projected FCF is ranked lower than
75% of the 362 Companies
in the Global Lodging industry.

( Industry Median: 1.48 vs. CHH: 3.11 )
Ranked among companies with meaningful Price/Projected FCF only.
CHH' s 10-Year Price/Projected FCF Range
Min: 1.03  Med: 2.08 Max: 6.19
Current: 3.11
1.03
6.19
Price/DCF (Earnings Based) 2.22
CHH's Price/DCF (Earnings Based) is ranked lower than
68% of the 31 Companies
in the Global Lodging industry.

( Industry Median: 1.42 vs. CHH: 2.22 )
Ranked among companies with meaningful Price/DCF (Earnings Based) only.
N/A
Price/Median PS Value 0.99
CHH's Price/Median PS Value is ranked higher than
61% of the 690 Companies
in the Global Lodging industry.

( Industry Median: 1.03 vs. CHH: 0.99 )
Ranked among companies with meaningful Price/Median PS Value only.
CHH' s 10-Year Price/Median PS Value Range
Min: 0.68  Med: 1.00 Max: 2.49
Current: 0.99
0.68
2.49
Price/Peter Lynch Fair Value 3.32
CHH's Price/Peter Lynch Fair Value is ranked lower than
80% of the 168 Companies
in the Global Lodging industry.

( Industry Median: 1.40 vs. CHH: 3.32 )
Ranked among companies with meaningful Price/Peter Lynch Fair Value only.
CHH' s 10-Year Price/Peter Lynch Fair Value Range
Min: 1  Med: 2.53 Max: 8.26
Current: 3.32
1
8.26
Earnings Yield (Greenblatt) (%) 6.20
CHH's Earnings Yield (Greenblatt) (%) is ranked higher than
66% of the 767 Companies
in the Global Lodging industry.

( Industry Median: 4.30 vs. CHH: 6.20 )
Ranked among companies with meaningful Earnings Yield (Greenblatt) (%) only.
CHH' s 10-Year Earnings Yield (Greenblatt) (%) Range
Min: 3.7  Med: 6.30 Max: 12.7
Current: 6.2
3.7
12.7
Forward Rate of Return (Yacktman) (%) 11.69
CHH's Forward Rate of Return (Yacktman) (%) is ranked higher than
57% of the 385 Companies
in the Global Lodging industry.

( Industry Median: 8.85 vs. CHH: 11.69 )
Ranked among companies with meaningful Forward Rate of Return (Yacktman) (%) only.
CHH' s 10-Year Forward Rate of Return (Yacktman) (%) Range
Min: 3.3  Med: 10.70 Max: 41
Current: 11.69
3.3
41

Analyst Estimate

Dec15 Dec16 Dec17
Revenue(Mil) 603 640 423
EPS($) 2.19 2.43 2.87
EPS without NRI($) 2.19 2.43 2.87

Business Description

Industry: Travel & Leisure » Lodging
Compare:MAR, ACRFF, IHG, SHALY, H » details
Traded in other countries:CZH.Germany,
Choice Hotels International Inc is a Delaware Corporation. The Company is one of the hotel franchisors in the world with 6,340 hotels open and 503 hotels under construction, 506,058 rooms open and 38,957 rooms under construction, in 50 states, the District of Columbia and over 35 countries and territories outside the United States. The Company operates in two reportable segments encompassing its hotel franchising business and its SkyTouch Technology ("SkyTouch") division. SkyTouch is a division of the Company that develops and markets cloud-based technology products, including inventory management, pricing and connectivity to third party channels, to hoteliers not under franchise agreements with the Company. SkyTouch's technology products are based on the Company's choice. Franchising includes the Company's hotel franchising operations consisting of its eleven brands. The eleven brands are aggregated within this segment considering their similar economic characteristics, types of customers, distribution channels and regulatory business environments. The brands offer consumers and developers options, including economy hotels, mid-scale, upper mid-scale and lower upscale, full service properties. The Company's brands are: Comfort Inn, Comfort Suites, Quality, Clarion, Sleep Inn, Econo Lodge, Rodeway Inn, MainStay Suites, Suburban Extended Stay Hotel, Cambria Suites and Ascend Collection. Cambria Suites is a new construction select service hotel chain with an upscale image and distinctive styling. The Ascend Hotel Collection includes individual properties that are historic, boutique and desire to retain their independent brand identity but have access to Choices marketing and distribution channels. Comfort Inn and Suites hotels are primarily upper mid-scale limited service hotels that offer a warm and welcoming guest experience. Sleep Inn is a new construction brand that operates in the moderate tier of the mid-scale lodging category, offering developers a lower cost to build with competitive mid-scale average daily rates. Clarion helps owners of existing mid-scale assets with food and beverage capabilities achieve strong returns with reasonable investment. Quality hotels provide clean, comfortable, and affordable accommodations, as well as the "Value Qs:" Q Bed, Q Breakfast, Q Shower, Q Service, and the Q Value of free high-speed internet access, a swimming pool and/or an exercise room and free newspaper. MainStay brand is designed as a more practical lodging option for guests whose stays are longer than a few nights. Suburban Extended Stay Hotel suites provide kitchens, internet connections, and access to on-site laundry facilities. Econo Lodge is the brand in the economy hotel category. Rodeway Inn is a brand also operating in the economy hotel category that offers sensible lodging for travelers on a budget. The Company conducts its international franchise operations through a combination of direct franchising and master franchis
» More Articles for CHH

Headlines

Articles On GuruFocus.com
Baron Funds Comments on Choice Hotels International Inc. Aug 18 2015 
Choice Hotels Q4 2014 Feb 24 2015 
Marriott´s Growth Strategy to Focus on Regions Outside the U.S. Jan 29 2015 
Why Wyndham Is Certainly a Winning Investment Mar 27 2014 
Choice Hotels: Of High Returns and Sluggish Growth Feb 25 2014 
Two contrarian short ideas Sep 28 2013 
The Best Yielding Ex-Dividend Stocks on March 28, 2013 Mar 27 2013 
Baron Funds Comments on Choice Hotels International Aug 24 2012 
Baron Asset Fund Commentary on Stock Holdings Feb 06 2012 
Ron Baron - Why He Bought His Top-5 Conviction Picks Jan 31 2012 

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