Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
The Altman Z-Score is a model designed to predict the likelihood of a company going bankrupt within the next two years. Created by American finance professor Edward Altman in 1968, the model is specifically designed for publicly traded manufacturing companies with assets greater than $1 million.
Good Sign:
Altman Z-score of 3.3 is strong.
Choice Hotels International has a Altman Z-Score of 3.31, indicating it is in Safe Zones. This implies the Altman Z-Score is strong.
The zones of discrimination were as such:
When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.
The historical rank and industry rank for Choice Hotels International's Altman Z-Score or its related term are showing as below:
FRA:CZH'
s Altman Z-Score Range Over the Past 10 Years
Min: 3.21 Med: 4.3 Max: 5.44
Current: 3.3
During the past 13 years, Choice Hotels International's highest Altman Z-Score was 5.44. The lowest was 3.21. And the median was 4.30.
Choice Hotels International (FRA:CZH) Altman Z-Score Explanation
X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.
X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.
X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.
X4, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.
X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.
* 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.
FRA:CZH vs WH, CVEO, GHG: Altman Z-Score Comparison
For the Lodging subindustry, Choice Hotels International's Altman Z-Score, along with its competitors' market caps and Altman Z-Score 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 Altman Z-Score vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Choice Hotels International's Altman Z-Score distribution charts can be found below:
* The bar in red indicates where Choice Hotels International's Altman Z-Score falls into.
Choice Hotels International Altman Z-Score Calculation
Altman Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
* 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. GuruFocus does not calculate Altman Z-Score when X4 or X5 value is 0.
Choice Hotels International (FRA:CZH) has a Altman Z-Score of 3.31 as of Jul. 25, 2026. The Altman Z-score measures a company's bankruptcy risk. View historical data on Choice Hotels International and its competitors. This is 23% below median its historical median of 4.30. Over the past decade, Choice Hotels International's Altman Z-Score has ranged from 3.21 to 5.44. According to the industry distribution chart, Choice Hotels International ranks #259 out of 835 companies in the Travel & Leisure industry, placing it in the top 31%.
Is Choice Hotels International's Altman Z-Score too high?
Choice Hotels International's current Altman Z-Score of 3.31 is 23% below median its 10-year median of 4.30. Over the past 10 years, this metric has ranged from a low of 3.21 to a high of 5.44. The Travel & Leisure industry median Altman Z-Score is 1.98. Choice Hotels International's value of 3.31 is 67.2% above this industry median. Based on the distribution chart, Choice Hotels International ranks #259 out of 835 companies in the Travel & Leisure industry, which is above the industry midpoint. Overall, Choice Hotels International has a GF Score™ of 84/100, reflecting its overall financial health beyond just this single metric.
How does Choice Hotels International's Altman Z-Score compare to WH and CVEO?
According to the Travel & Leisure industry distribution chart, Choice Hotels International ranks #259 out of 835 companies for Altman Z-Score. This puts Choice Hotels International in the upper half of its industry. The industry median Altman Z-Score is 1.98. Choice Hotels International's value of 3.31 is 67.2% above this benchmark. Historically, Choice Hotels International's own Altman Z-Score has ranged from 3.21 to 5.44 over the past decade. While the company's 10-year median is 4.30 vs. the industry median of 1.98, 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 Altman Z-Score for a Travel & Leisure company?
The median Altman Z-Score among Travel & Leisure companies is 1.98, based on 835 companies in the industry. Companies in the top quartile (top 25%) have a Altman Z-Score significantly above this median, while those in the bottom quartile fall well below. However, Altman Z-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Choice Hotels International's current Altman Z-Score of 3.31 is 67.2% 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 Altman Z-Score mean?
A high Altman Z-Score can signal that a stock is expensive relative to its fundamentals. The Altman Z-score measures a company's bankruptcy risk. View historical data on Choice Hotels International and its competitors. For the Travel & Leisure industry, the median Altman Z-Score is 1.98 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Choice Hotels International's current Altman Z-Score is 3.31, which is 23% below median its own 10-year median of 4.30. 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 Altman Z-Score of 3.31. 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 Altman Z-Score is 3.31, which is 23% below median its 10-year median of 4.30 and 67.2% above the Travel & Leisure industry median of 1.98. Choice Hotels International's overall GF Score™ is 84/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Altman Z-Score calculated?
Altman Z-Score is calculated from a company's financial statements. For Choice Hotels International (FRA:CZH), the current Altman Z-Score is 3.31 as of Jul. 25, 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:
Altman Z-Score: 3.31 (23% below median its 10-year median of 4.30)
GF Value™: €113.84 vs. price of €92.50 (18.7% below fair value)
Industry Position: 67.2% above the Travel & Leisure median (#259 of 835)
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.
84GF Score
Get the complete analysis for FRA:CZH
Altman Z-Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
FRA:CZH has been successfully added to your 
