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The historical rank and industry rank for Choice Hotels International's ROE % or its related term are showing as below:
FRA:CZH'
s ROE % Range Over the Past 10 Years
Min: 157.96 Med: 246.95 Max: 544.21
Current: 456.98
During the past 13 years, Choice Hotels International's highest ROE % was 544.21%. The lowest was 157.96%. And the median was 246.95%.
FRA:CZH's ROE % is ranked better than 97.07% of 819
companies
in the Travel & Leisure industry
Industry Median: 5.57
vs FRA:CZH: 456.98
Choice Hotels International (FRA:CZH) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Lodging subindustry, Choice Hotels International's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Choice Hotels International ROE % vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Choice Hotels International's ROE % distribution charts can be found below:
* The bar in red indicates where Choice Hotels International's ROE % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Choice Hotels International (FRA:CZH) has a ROE % of 51.35% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Choice Hotels International and its competitors. This is 79% below median its historical median of 246.95. Over the past decade, Choice Hotels International's ROE % has ranged from 157.96 to 544.21. According to the industry distribution chart, Choice Hotels International ranks #24 out of 819 companies in the Travel & Leisure industry, placing it in the top 2.9%.
Is Choice Hotels International's ROE % too high?
Choice Hotels International's current ROE % of 51.35% is 79% below median its 10-year median of 246.95. Over the past 10 years, this metric has ranged from a low of 157.96 to a high of 544.21. The Travel & Leisure industry median ROE % is 5.57. Choice Hotels International's value of 51.35% is 821.9% above this industry median. Based on the distribution chart, Choice Hotels International ranks #24 out of 819 companies in the Travel & Leisure industry, which is in the top quartile — a strong position relative to peers. Overall, Choice Hotels International has a GF Score™ of 85/100, reflecting its overall financial health beyond just this single metric.
How does Choice Hotels International's ROE % compare to WH and CVEO?
According to the Travel & Leisure industry distribution chart, Choice Hotels International ranks #24 out of 819 companies for ROE %. This places Choice Hotels International in the top 3% of its industry — outperforming the majority of peers. The industry median ROE % is 5.57. Choice Hotels International's value of 51.35% is 821.9% above this benchmark. Historically, Choice Hotels International's own ROE % has ranged from 157.96 to 544.21 over the past decade. While the company's 10-year median is 246.95 vs. the industry median of 5.57, Choice Hotels International has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROE % for a Travel & Leisure company?
The median ROE % among Travel & Leisure companies is 5.57, based on 819 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Choice Hotels International's current ROE % of 51.35% is 821.9% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Choice Hotels International and its competitors. For the Travel & Leisure industry, the median ROE % is 5.57 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Choice Hotels International's current ROE % is 51.35%, which is 79% below median its own 10-year median of 246.95. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Choice Hotels International stock overvalued right now?
Choice Hotels International (FRA:CZH) has a current ROE % of 51.35%. The stock's GF Value™ is €113.84, compared to a current price of €92.50 — trading 18.7% below its estimated fair value. The current ROE % is 51.35%, which is 79% below median its 10-year median of 246.95 and 821.9% above the Travel & Leisure industry median of 5.57. Choice Hotels International's overall GF Score™ is 85/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For Choice Hotels International (FRA:CZH), the current ROE % is 51.35% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Choice Hotels International (FRA:CZH) Overvalued in 2026?
Based on GuruFocus' analysis, Choice Hotels International stock appears to be undervalued.
The current stock price of €92.50 is trading 18.7% below its estimated GF Value™ of €113.84.
Key valuation signals for FRA:CZH:
ROE %: 51.35% (79% below median its 10-year median of 246.95)
GF Value™: €113.84 vs. price of €92.50 (18.7% below fair value)
Industry Position: 821.9% above the Travel & Leisure median (#24 of 819)
No single metric tells the full story. See the FRA:CZH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
At year-end 2025, Choice Hotels operated 657,000 rooms across the economy, midscale, upscale, and extended-stay segments. Comfort Inn and Comfort Suites are the largest brands (27% of the company's total rooms), while Ascend and Cambria (10%) are lifestyle and select-service brands, and WoodSpring (5%) is the company's largest extended-stay brand. Choice closed on its Radisson acquisition in August 2022, which added about 70,000 rooms. Franchises account for 100% of total revenue, and the United States represented 78% of total rooms in 2025.
85GF Score
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