Awarener easy mode Awarener analytic mode

Fundamental analysis: Choice Hotels International, Inc. (CHH)

Awarener score: 6.3

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Good), the business stability (Lacking) and growth (Modest), and the company's inclination to return cash to the stockholders (Good).

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: 4.5

  • Business growth has been almost stagnant. It's been similar to peer companies.
  • Choice Hotels International, Inc. business shows some variation, there's some risk. It looks mediocre against rivals.

Margins score: 8.8

  • CHH profit margins -on goods and services sold- are usually very good. They stand well ranked against rival companies.
  • Business profit on sales tends to be huge. It's top tier when measured against competitors.
  • Profits on sales made -available to repay debt and purchase properties- are usually very good. They remain impressive in relation to peers.
  • Earnings -before income taxes and interests on loans taken- tend to be excellent in relation to total revenues. They're still top-notch against similar companies.
  • Profits -before income taxes- are usually excellent considering total sales, and remain top tier when measured against rivals.
  • Total net profit tends to be excellent when confronted to sales. Company stands top tier when measured against comparable firms.

Growth score: 7.6

  • Choice Hotels International, Inc. profit -on goods and services sold- has been growing at a very good pace. It's been in good shape compared to competitors.
  • In recent years, earnings -on operations- have been growing at a good step, which has been slightly better than comparable firms.
  • Profits -available to repay debt and purchase properties- have been growing at a good pace, which compares encouraging in relation to peer enterprises.
  • Earnings -before income taxes and interests on loans taken- have been growing at a good tempo. It turns to be excellent in relation to similar stocks.
  • In past years, profits -before income taxes- grew at a very good speed. It was top-notch against rivals.
  • In the previous years, growth trend on total net profit has been very good, and top tier when measured against peer companies.
  • Earnings per share have grown at a very good rhythm in past years. It's been impressive in relation to industry peers.

Miscellaneous score: 5.0

  • CHH had to pay some income taxes in relation to profits made in the past years. It's been slightly worse than peers.
  • The company does not report R&D expenses. It's meaningless to measure in relation to competitors.
  • We have insufficient data to estimate how effective is research and development effort. It stands unknown against rival companies.

Profitability score: 10.0

  • Choice Hotels International, Inc. usually gets huge returns on the resources it controls. It proves top tier when measured against peer firms.
  • Due to insufficient track history, we were unable to estimate typical returns on invested capital (ROIC). They remain undisclosed in relation to similar companies.
  • Normal return on equity (ROE) is unavailable at this time, because of not enough yearly inputs to calculate. It ranks unknown against competitors.
  • In the past, got huge returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's top tier when measured against comparable enterprises.

Usage of Funds score: 6.9

  • CHH usually uses a significant portion of genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments is abundant. It stands top tier when measured against rival firms.
  • The company is usually largely investing in new property, plant, and equipment, to expand its operating capabilities, which is great when measured against industry peers.
  • In the past twelve months it paid somewhat low dividends, considering the current stock price. It came worse than most competitors.
  • Has greatly increased dividend payments in the past years. Business prospects are most likely good. The company has behaved rather normal in relation to similar firms.
  • Dividend payments usually represent a modest portion of genuine funds generation and should be reasonable safe. Sustainability looks well ranked against comparable companies.
  • The company usually neither enlarges nor reduces the pool of investors, resulting in approximately the same mouths feeding on the pie of profits. It remains rather normal in relation to peer enterprises.
  • Repurchase effectiveness metric is very complex. Run again in analytical mode if you're interested in a technical explanation. It stands in good shape compared to rivals.
  • The company uses a moderate portion of genuine fund generation to reward investors, which can probably be sustained for as long as business doesn't turn very sour. It still looks encouraging in relation to competitors.

Balance Sheet score: 5.9

  • Choice Hotels International, Inc. intangible assets (like brands and goodwill) represent a very large portion of resources controlled, according to accounting books. There could be major difficulties in liquidating them if the company ever gets in financial distress. It happens to be last-in-rank when measured against peer companies.
  • The company has more short-term resources than short-term obligations. Liquidity concerns shouldn't be an issue. It turns to be lacking compared to similar firms.
  • A substantial part of resources controlled were provided for with financial debt. Creditors have as many claims on the company as shareholders. The situation is somewhat risky. It remains somewhat worse than rival firms.
  • Controlled resources can be made into cash within reason, which is quite good for liquidity. It looks below average when measured against rivals.
  • For every dollar of short-term obligations, the company has enough dollars in cash and short-term receivables. It's a slight improvement compared to peer firms.
  • For every dollar of short-term obligations, the company has roughly another of cash and equivalents, which is somewhat better than similar enterprises.
  • Usually, sales are on slightly higher than two months credit. It still ranks last-in-rank when measured against peers.
  • Normally has no inventories. It comes up as impressive in relation to competitors.
  • On average, it takes less than three months from the purchase to charging customers. It happens to be well ranked against peers.
  • On average pays suppliers approximately four months or higher after the purchase. It ranks more than average in relation to industry peers.
  • The company charges its customers before it must pay its suppliers, so the more it sales, the more free funds it gets. It's excellent in relation to similar companies.
  • Net interest expenses consume a minor portion of usual business earnings, and are largely bearable. It stands slightly worse than rival firms.
  • Business earnings have usually been quite good when measured against loans taken. Cutting back reinvesting in the business, it could take around three years to repay the obligations with current profitability. It ranks similar to comparable enterprises.
  • Revenues are modest in relation to property, plant, and equipment required to operate. This metric is likely dependent on the industry the company operates in. The more property, plant, and equipment used, the more the company must reinvest to fight obsolescence, which usually means less available funds for the shareholders in the long run. It looks in a very weak position compared to similar firms.
  • Resource exploitation is quite good when yearly sales are considered. This metric is normally tied to the industry where the firm belongs. It's still mediocre against peer companies.

Valuation score: 5.4

  • Choice Hotels International, Inc. looks somewhat expensive in relation to profits and financial position. It happens to be below average when measured against competitors.
  • Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains a disappointment compared to peers.
  • In the past twelve months, the company generated some good free funds in relation to the stock price, which stands somewhat worse than similar companies.
  • The company usually generates reasonably more than enough genuine funds to cover up for its business needs. Surplus cash may be used to repay loans, to eventually buy new businesses, or to reward investors. Considering the financial position and stock price, the current valuation might be fair. It's still below average when measured against industry firms.
  • In the past twelve months, the company has barely rewarded investors, considering both dividends and share on the pie of earnings. It came up rather normal in relation to peer ventures.
  • The company has barely more debt than cash. It may borrow extra money if it wishes so, or start cumulating cash for future uses. It looks well ranked against similar enterprises.
  • Considering the past twelve months, traditional Price-to-Earnings relation is somewhat high. Improvement expectations are already in the stock price, which presents some risks. It ranks weak when measured against peer companies.
  • Comparing the current stock price with the past twelve-months revenues gives a very high relationship. This is an important metric to check its evolution through time, and to compare to industry peers. It looks a disappointment compared to rival firms.
  • The relation between the stock price and accounting book value is extremely high, which may be good or bad depending on context. Run again in analytic mode if you want to dig deeper. The company remains worse than most peer firms.
  • In the past twelve months, the operating business earned good money when compared to the current stock price and financial position. It happens to be below average when measured against industry peers.
  • In an alternate metric of bang for the buck, the company has usually shown a good earnings power ability when measured against the current stock price and financial position. It's still close to average when compared to peer companies.

Total score: 6.8


CHH logos

Company at a glance: Choice Hotels International, Inc. (CHH)

Sector, industry: Consumer Cyclical, Lodging

Market Cap: 5.94 billions

Revenues TTM: 1.23 billions

Choice Hotels International, Inc., together with its subsidiaries, operates as a hotel franchisor worldwide. The company operates in Hotel Franchising and Corporate & Other segments. It franchises lodging properties under the brand names of Comfort Inn, Comfort Suites, Quality, Clarion, Clarion Pointe, Sleep Inn, Econo Lodge, Rodeway Inn, MainStay Suites, Suburban Extended Stay Hotel, WoodSpring Suites, Everhome Suites, Cambria Hotels, and Ascend Hotel Collection. The company also develops and markets cloud-based property management software to non-franchised hoteliers. As of March 31, 2022, it had approximately 7,000 hotels with approximately 600,000 rooms in 35 countries and territories. Choice Hotels International, Inc. was founded in 1939 and is headquartered in Rockville, Maryland.

Awarener score: 6.3

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Good), the business stability (Lacking) and growth (Modest), and the company's inclination to return cash to the stockholders (Good).