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40.71 (1y: -1%)
Market Cap 2.41 B P/E(ttm) 20.50
Enterprise Value 3.14 B P/B
CHH- NYSE (USA)
Choice Hotels International, Inc.
  • Currently 2.5/5
Business Predictability Rank: 2.5-Star
Back Testing Results:
Average gain of all 2.5-Star stocks: 7.3% per year.
% of Stocks that are in still loss if held for 10yrs: 18%.
Read more:
What is Predictability Rank?
Performances of real portfolio
Top Ranked Predictable Companies
$40.71
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GuruFocus Financial Strength Rank measures how strong a companyย’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 : 5/10

vs
industry		 vs
history
Cash to Debt 0.161
CHH's Cash to Debt is ranked lower than
51% of the 786 Companies
in the Global Lodging industry.

( Industry Median: 0.55 vs. CHH: 0.161 )
CHH' s 10-Year Cash to Debt Range
Min: 0.04   Max: 0.47
Current: 0.16
0.04
0.47
Equity to Asset -1.075
CHH's Equity to Asset is ranked lower than
75% of the 786 Companies
in the Global Lodging industry.

( Industry Median: 0.50 vs. CHH: -1.075 )
CHH' s 10-Year Equity to Asset Range
Min: -1.08   Max: 0.19
Current: -1.08
-1.08
0.19
Interest Coverage 7.5
CHH's Interest Coverage is ranked higher than
69% of the 786 Companies
in the Global Lodging industry.

( Industry Median: 4.00 vs. CHH: 7.5 )
CHH' s 10-Year Interest Coverage Range
Min: 7   Max: No Debt
Current: 7.5
F-Score: 5
Z-Score: 4.19
M-Score: -2.96
GuruFocus Profitability Rank ranks how profitable a company is and how likely the companyย’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.
ย•ย•3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rankย•

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 : 6/10

vs
industry		 vs
history
Operating margin (%) 27.90
CHH's Operating margin (%) is ranked higher than
94% of the 786 Companies
in the Global Lodging industry.

( Industry Median: 6.60 vs. CHH: 27.90 )
CHH' s 10-Year Operating margin (%) Range
Min: 21.5   Max: 58.6
Current: 27.9
21.5
58.6
Net-margin (%) 17.5
CHH's Net-margin (%) is ranked higher than
88% of the 786 Companies
in the Global Lodging industry.

( Industry Median: 3.50 vs. CHH: 17.5 )
CHH' s 10-Year Net-margin (%) Range
Min: 4.2   Max: 35.4
Current: 17.5
4.2
35.4
ROA (%) 23.6
CHH's ROA (%) is ranked higher than
98% of the 786 Companies
in the Global Lodging industry.

( Industry Median: 2.10 vs. CHH: 23.6 )
CHH' s 10-Year ROA (%) Range
Min: 4.5   Max: 37.2
Current: 23.6
4.5
37.2
Revenue Growth (%) 6.4
CHH's Revenue Growth (%) is ranked higher than
84% of the 786 Companies
in the Global Lodging industry.

( Industry Median: 0.00 vs. CHH: 6.4 )
CHH' s 10-Year Revenue Growth (%) Range
Min: 1.4   Max: 35.3
Current: 6.4
1.4
35.3
EBITDA Growth (%) 7.6
CHH's EBITDA Growth (%) is ranked higher than
84% of the 786 Companies
in the Global Lodging industry.

( Industry Median: 0.00 vs. CHH: 7.6 )
CHH' s 10-Year EBITDA Growth (%) Range
Min: -0.9   Max: 19.2
Current: 7.6
-0.9
19.2
EPS Growth (%) 6.2
CHH's EPS Growth (%) is ranked higher than
84% of the 786 Companies
in the Global Lodging industry.

( Industry Median: 0.00 vs. CHH: 6.2 )
CHH' s 10-Year EPS Growth (%) Range
Min: -0.8   Max: 61
Current: 6.2
-0.8
61
ยป CHH's 10-Y Financials

Financials


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

» Details

Guru Trades
Q2 2012

CHH Guru Trades in Q2 2012

Joel Greenblatt 28,054 sh (+6.08%)
Ron Baron 5,440,843 sh (+1.27%)
Columbia Wanger 999,000 sh (unchged)
Paul Tudor Jones Sold Out
Jim Simons 11,400 sh (-85.89%)
» More
Q3 2012

CHH Guru Trades in Q3 2012

Paul Tudor Jones 14,500 sh (New)
Columbia Wanger 1,299,650 sh (+30.1%)
Ron Baron 5,607,434 sh (+3.06%)
Jim Simons Sold Out
Joel Greenblatt 25,774 sh (-8.13%)
» More
Q4 2012

CHH Guru Trades in Q4 2012

Columbia Wanger 1,901,012 sh (+46.27%)
Joel Greenblatt 35,871 sh (+39.18%)
Jeremy Grantham 9,700 sh (unchged)
Paul Tudor Jones Sold Out
Ron Baron 5,594,672 sh (-0.23%)
» More
Q1 2013

CHH Guru Trades in Q1 2013

Jim Simons 17,000 sh (New)
Columbia Wanger 2,359,000 sh (+24.09%)
Jeremy Grantham 9,900 sh (+2.06%)
Ron Baron 5,606,708 sh (+0.22%)
Joel Greenblatt 24,708 sh (-31.12%)
» More
» Details

Insider Trades

Latest Guru Trades with CHH

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Joel Greenblatt 2013-03-31 Reduce -31.12%0.02%$33.62 - $42.31 $ 40.719%24708
Joel Greenblatt 2012-12-31 Add 39.18%0.02%$30.8 - $33.58 $ 40.7128%35871
Joel Greenblatt 2012-03-31 Add 59.43%0.03%$35.23 - $38.93 $ 40.7119%26447
Joel Greenblatt 2011-09-30 Add 107.25%0.04%$26.54 - $34.67 $ 40.7134%14387
Joel Greenblatt 2011-06-30 New Buy0.03%$32.18 - $41.2 $ 40.7113%6942
Premium More recent guru trades are included for Premium Members only!!
ยป Financial Charts

Peter Lynch Chart

Guru Investment Theses on Choice Hotels International, Inc.

Baron Funds Comments on Choice Hotels International - Aug 24, 2012

From Baron Funds' second quarter commentary:

We added to our position in Choice Hotels International, Inc. (CHH), the largest franchisor of hotels in the U.S. The company announced that it would pay a one-time, $600 million, $10 per share, special dividend to its shareholders. This "leveraged recapitalization" was enabled by the consistent earnings growth of Choice's franchise revenues and unusually attractive financing terms currently available. We regard this favorably since we think the company will be able to increase its earnings and reduce its indebtedness sufficiently during the next year to remain investment grade.We think the announcement also shows the company's confidence in its business and continued propensity to return capital to its shareholders.We believe the company has additional opportunities to accelerate its growth with new business opportunities that could create value for its shareholders. We continue to find the company's ability to earn money in both lodging
Check out Ron Baron latest stock trades

Top Ranked Articles about Choice Hotels International, Inc.

Baron Funds Comments on Choice Hotels International
August 24, 2012
From Baron Funds' second quarter commentary: Read more...

Ratios

vs
industry		 vs
history
P/E(ttm) 20.80
CHH's P/E(ttm) is ranked higher than
63% of the 536 Companies
in the Global Lodging industry.

( Industry Median: 20.10 vs. CHH: 20.80 )
CHH' s 10-Year P/E(ttm) Range
Min: 7.92   Max: 76.49
Current: 20.8
7.92
76.49
P/S 3.40
CHH's P/S is ranked lower than
58% of the 720 Companies
in the Global Lodging industry.

( Industry Median: 1.44 vs. CHH: 3.40 )
CHH' s 10-Year P/S Range
Min: 1.49   Max: 7.86
Current: 3.4
1.49
7.86
PFCF 17.90
CHH's PFCF is ranked higher than
66% of the 490 Companies
in the Global Lodging industry.

( Industry Median: 19.59 vs. CHH: 17.90 )
CHH' s 10-Year PFCF Range
Min: 6.8   Max: 32.23
Current: 17.9
6.8
32.23
EV-to-EBIT 16.7
CHH's EV-to-EBIT is ranked higher than
65% of the 553 Companies
in the Global Lodging industry.

( Industry Median: 16.58 vs. CHH: 16.7 )
CHH' s 10-Year EV-to-EBIT Range
Min: 7.4   Max: 27.3
Current: 16.7
7.4
27.3
PEG 3.8
CHH's PEG is ranked higher than
51% of the 204 Companies
in the Global Lodging industry.

( Industry Median: 1.48 vs. CHH: 3.8 )
CHH' s 10-Year PEG Range
Min: 0.38   Max: 61.63
Current: 3.8
0.38
61.63
Shiller P/E 21.5
CHH's Shiller P/E is ranked lower than
100% of the Companies
in the Global Lodging industry.

( Industry Median: vs. CHH: 21.5 )
CHH' s 10-Year Shiller P/E Range
Min: 13.82   Max: 65.87
Current: 21.5
13.82
65.87

Dividend & Buy Back

vs
industry		 vs
history
Dividend Yield 1.80
CHH's Dividend Yield is ranked higher than
66% of the 786 Companies
in the Global Lodging industry.

( Industry Median: 0.85 vs. CHH: 1.80 )
CHH' s 10-Year Dividend Yield Range
Min: 0.42   Max: 3.35
Current: 1.8
0.42
3.35
Dividend Payout 0.3677
CHH's Dividend Payout is ranked higher than
60% of the 349 Companies
in the Global Lodging industry.

( Industry Median: 0.40 vs. CHH: 0.3677 )
CHH' s 10-Year Dividend Payout Range
Min: 0.33   Max: 0.49
Current: 0.37
0.33
0.49
Yield on cost (5-Year) 1.87
CHH's Yield on cost (5-Year) is ranked higher than
69% of the 786 Companies
in the Global Lodging industry.

( Industry Median: 0.66 vs. CHH: 1.87 )
CHH' s 10-Year Yield on cost (5-Year) Range
Min: 0.44   Max: 3.49
Current: 1.87
0.44
3.49
Share Buyback Rate 1.1
CHH's Share Buyback Rate is ranked higher than
96% of the 786 Companies
in the Global Lodging industry.

( Industry Median: 0.00 vs. CHH: 1.1 )
CHH' s 10-Year Share Buyback Rate Range
Min: 8.9   Max: 1.1
Current: 1.1

Valuation & Return

vs
industry		 vs
history
Price/Net Current Asset Value 66.5
CHH's Price/Net Current Asset Value is ranked lower than
56% of the 417 Companies
in the Global Lodging industry.

( Industry Median: 20.00 vs. CHH: 66.5 )
CHH' s 10-Year Price/Net Current Asset Value Range
Min: 34.2   Max: 126.5
Current: 66.5
34.2
126.5
Price/DCF (Projected) 5.7
CHH's Price/DCF (Projected) is ranked lower than
55% of the 287 Companies
in the Global Lodging industry.

( Industry Median: 1.40 vs. CHH: 5.7 )
CHH' s 10-Year Price/DCF (Projected) Range
Min: 1.2   Max: 3.6
Current: 5.7
1.2
3.6
Price/Median PS Value 1
CHH's Price/Median PS Value is ranked higher than
65% of the 635 Companies
in the Global Lodging industry.

( Industry Median: 1.00 vs. CHH: 1 )
CHH' s 10-Year Price/Median PS Value Range
Min: 0.7   Max: 1.6
Current: 1
0.7
1.6
Earnings Yield (Greenblatt) 6.00
CHH's Earnings Yield (Greenblatt) is ranked higher than
74% of the 786 Companies
in the Global Lodging industry.

( Industry Median: 4.20 vs. CHH: 6.00 )
CHH' s 10-Year Earnings Yield (Greenblatt) Range
Min: 3.7   Max: 13.5
Current: 6
3.7
13.5
Forward Rate of Return (Yacktman) 7.72
CHH's Forward Rate of Return (Yacktman) is ranked higher than
89% of the 786 Companies
in the Global Lodging industry.

( Industry Median: 0.00 vs. CHH: 7.72 )
CHH' s 10-Year Forward Rate of Return (Yacktman) Range
Min: 4.9   Max: 42.8
Current: 7.72
4.9
42.8

Business Description

Choice Hotels International, Inc. is a Delaware Corporation. The Company and subsidiaries operates as hotel franchisors in the world. It operates in a single reportable segment encompassing its franchising business. The Company conducts its international franchise operations through a combination of direct franchising and master franchising relationships which allow the use of its brands by third parties in foreign countries. It operates in a single reportable segment encompassing its franchising business. The Company conducts its international franchise operations through a combination of direct franchising and master franchising relationships which allow the use of its brands by third parties in foreign countries. The Company's brands are brand names: 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 an upscale new construction select service hotel chain with an upscale image and distinctive styling. Cambria offers well-appointed suites that emulate the 'best of a modern home.' In-room amenities include luxury bedding, stereo with CD player, cordless phone and mini-refrigerator with microwave. Ascend Collection is an innovative upscale membership program that is not positioned as a traditional franchise concept. Comfort Inn and Comfort Inn and Suites hotels operate in the mid-scale without food and beverage category. One of the original brands in the limited service category, Comfort has built a reputation for consistent high-value accommodations for both business and leisure travelers. Comfort Suites hotels operate in the upper portion of the mid-scale without food and beverage category. Established in 1986 as an extension of the highly regarded Comfort Inn brand, Comfort Suites hotels feature over sized rooms with separate areas for working and sleeping, a complimentary rotational Savory Starts Breakfast and free high-speed Internet access. Sleep Inn is a new construction brand that operates in the mid-scale without food & beverage category. Clarion hotels are full-service conversion hotels competing in the mid-scale hotel category. Clarion hotels provide a full spectrum of full-service facilities and amenities, which include restaurant, conference, banquet or small meeting facilities, business center, swimming pool or exercise room, room service and bell service. Quality Inn hotels offer efficient and personable service and clean accommodations in the mid-scale category. MainStay Suites include a sleeper sofa, comfortable work area with ergonomic chair and large walk-in closets. Suburban Extended Stay Hotel suites are built with today's value-conscious extended stay guest in mind. All suites provide full kitchens, internet connections, and access to on-site laundry facilities. Econo Lodge is a brand in the economy chain scale category, which offers clean, attractive lodging for value-orient
Company Website
SEC Reports
Industry: Lodging
Compare:MAR, ACRFF, IHG, SHALY, H
ยป More Articles for CHH

Headlines

Articles On GuruFocus.com
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 
Choice Hotels International Inc. (CHH) President & CEO Stephen P Joyce sells 4,140 Shares Mar 11 2011 
Choice Hotels International Inc. Reports Operating Results (10-Q) Nov 09 2010 
Choice Hotels International Inc. Reports Operating Results (10-Q) Aug 09 2010 
Choice Hotels International Inc. Reports Operating Results (10-Q) May 03 2010 
Whiting USA Trust I -- A Small-Cap Energy Play with a 13% Yield Apr 16 2010 
Choice Hotels International Inc. Reports Operating Results (10-Q) Nov 06 2009 

More From Our Partners
Choice Hotels' Cambria Suites in Plano - Analyst Blog Jun 18 2013 - ZACKS

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