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CHH

Choice Hotels International, Inc.
$111.98
-1.48% Oct 22 close
Consumer DiscretionaryS&P 400 CompareTechnicals
-17%-8%+2%+11%+20%Oct 2025Oct 2026Apr 2026
CHHSPY
1W
+4.7%
1M
+11.9%
3M
+4.0%
6M
-6.2%
YTD
+18.9%
1Y
+10.2%

Live chart

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What they do

Choice Hotels International, Inc. operates as a hotel franchisor in the United States and internationally. It operates through Hotel Franchising & Management and Corporate & Other segments. The company franchises lodging properties under the Comfort Inn, Comfort Suites, Quality, Clarion, Clarion Pointe, Sleep Inn, Ascend Collection, Econo Lodge.

Consumer Cyclical · Lodging

For information only · Important disclosures

Grades vs sector

Momentum
71st percentile in sector
B
12-1 return: +11.1%
Percentile within its GICS sector across the S&P 1500.
Growth
67th percentile in sector
B
Revenue growth (YoY): +7.1%
Percentile within its GICS sector across the S&P 1500.
Value
38th percentile in sector
C-
Forward E/P: 6.9% · EBITDA/EV: 6.9%
Percentile within its GICS sector across the S&P 1500.
Profitability
99th percentile in sector
A+
Profit margin: +32.6% · Return on equity: +566.4%
Percentile within its GICS sector across the S&P 1500.
Revisions
Not enough data yet
–
EPS estimate change, 30 days (current FY): –
30-day change in analysts' current-year EPS estimate; graded across covered stocks.

Systematic Models

Not held by any of our 5 live models right now.

Quality Growth
Outside this model's universe or screens
Momentum Top 15
Outside this model's universe or screens
Momentum Blend
Not in the current book
New Highs Growth
Outside this model's universe or screens
Coteau Long Book
Not in the current book

News

More news
1 Cash-Producing Stock to Research Further and 2 That Underwhelm
StockStory · Oct 19

Key stats

Market value$5.2B
P/E (last 12 months)16.1
P/E (next 12 months, estimated)15.1
52-week range$84.04 – $123.82
Revenue growth (latest quarter vs a year ago)+7.1%
Dividend yield1.01%
Analyst consensusHold (17)
Average analyst price target$114.94 (+3%)
Valuation and fundamentals

Valuation & fundamentals

Bottom line
Looks expensive
Model read-out from the numbers below, not advice. Score -3 (DCF counts double).
▼DCF (base case)below the price by 56%
•Forward P/E vs sector15.1x vs median 13.4x
•Piotroski F-score6/9
▲Altman Z3.2 (safe)
▼Net debt / EBITDA4.1x
•Analyst target+3% (17 analysts)

Discounted cash flow

Bear
$12
-89%
growth 1% · disc. 8.8% · term. 2.0%
Base
$49
-56%
growth 6% · disc. 7.8% · term. 2.5%
Bull
$107
-4%
growth 9% · disc. 6.8% · term. 3.0%

A DCF starts from trailing free cash flow, so it can overstate value if the last 12 months were unusually strong (or weak). Use the bear case or edit the starting cash flow if so.

Reverse DCFfor context, not a signal
Today's price assumes free cash flow grows about 12% a year for 10 years.
Implied
+12%/yr
FCF, last 3 yrs
-10%/yr
FCF, last 5 yrs
+20%/yr
Revenue, last 3 yrs
+4%/yr
Revenue, last 5 yrs
+16%/yr
Same inputs as the DCF above: trailing free cash flow 0.2B, 7.8% discount rate, 2.5% growth after year 10, net debt and today's share count. Actual growth rates are compound annual rates from SEC annual filings through FY2025; "n/a" means too little history or a negative starting year.
Edit assumptions · recalculates instantly
Your value per share–

Free cash flow = operating cash flow − capital spending, trailing 12 months (TTM to 2026-06-30). Growth default: average of 3-year revenue CAGR and latest revenue growth, capped at 30%. Years 6–10 fade linearly to terminal growth. Discount rate = 4.25% risk-free assumption + beta 0.71 × 5% equity premium, kept within 7–13%. Bear: lower growth, +1 pt discount, 2% terminal. Bull: higher growth, −1 pt, 3%.

Multiples vs Consumer Discretionary

P/E (trailing)
sector median 17.7× · 40th pct
16.1×
cheaper
Forward P/E
sector median 13.4× · 60th pct
15.1×
pricier
EV / EBITDA
sector median 11.3× · 73rd pct
15.0×
pricier
Price / sales
sector median 1.2× · 84th pct
3.2×
pricier
Price / book
sector median 2.8× · 98th pct
36.4×
pricier
FCF yield
sector median 6.6% · 25th pct
3.5%
pricier

Forward EPS $7.52 vs trailing $7.08 (+6% expected growth). Forward P/E uses analysts' next-12-month estimate.

Backlog (remaining performance obligations)

RPO
$229.9M
as of 2026-06-30
vs a year ago
+6%
YoY
× TTM revenue
0.14×
coverage
24-09
24-12
25-03
25-06
25-09
25-12
26-03
26-06

Contracted revenue not yet recognized, from SEC filings (XBRL tag RevenueRemainingPerformanceObligation).

Quality & financial health

Gross margin
–
Operating margin
25.2%
FCF margin
11.2%
Net margin
20.3%
Return on equity
230.9%
Return on invested capital
15.8%
Net debt / EBITDA
4.1×
Current ratio
0.9×
Interest cover
4.3×
Cash conversion (OCF/NI)
0.7×
Piotroski F-score 6/9 · last two fiscal years
✓ Positive net income✓ Positive operating cash flow✓ Return on assets improved✗ Cash flow above net income✓ Long-term debt / assets fell✓ Current ratio improved✓ No share dilution✗ Gross margin improved✗ Asset turnover improved

Altman Z-score 3.2 (safe zone; above 3.0 = safe, below 1.8 = distress). Not meaningful for banks and insurers.

Analysts

Mean target
$115
+3%
Analysts
17
Hold
Range
$93–$131
low – high
● price · ◆ mean target

Annual history

FYRevenueNet incomeFree cash flow
2025$1.6B$369.9M$270.4M
2024$1.6B$299.7M$319.4M
2023$1.5B$258.5M$296.6M
2022$1.4B$332.2M$367.1M
2021$1.1B$289.0M$383.7M
2020$774.1M$75.4M$110.1M

From the company's 10-K filings via SEC XBRL. 3-year revenue CAGR +4.4%.

Earnings

Next report: 2026-11-02 · before open · EPS est 2.28
24-1125-0225-0525-0825-1126-0226-0426-080.002.23
EstimateActual (beat)Actual (miss)
ReportEPS estActualSurprise
2026-08-051.972.02+2.8%
2026-04-301.321.07-18.8%
2026-02-191.541.60+3.7%
2025-11-052.202.10-4.4%
2025-08-061.901.92+1.0%
2025-05-081.371.34-2.0%
2025-02-201.481.55+4.5%
2024-11-041.912.23+16.6%

Quarterly revenue

QuarterRevenueYoY
2026-06-30$440.8M+3.4%
2026-03-31$340.6M–
2025-12-31$390.1M–
2025-09-30$447.3M–
2025-06-30$426.4M–
Rating changes
Reiterated
2026-10-21 · JP Morgan reiterated Neutral on CHH
Reiterated
2026-10-19 · Wells Fargo reiterated Underweight on CHH
Reiterated
2026-10-16 · Barclays reiterated Underweight on CHH
Initiated
2026-10-14 · Freedom Broker started covering CHH at Buy
Reiterated
2026-10-12 · Morgan Stanley reiterated Underweight on CHH
Reiterated
2026-09-29 · Baird reiterated Outperform on CHH

Third-party analyst actions, not Coteau's views. All rating changes

Recent dividends

2026-10-01: $0.288 · 2026-07-01: $0.288 · 2026-04-01: $0.288 · 2026-01-02: $0.288 · 2025-10-01: $0.288 · 2025-07-01: $0.288 · 2025-04-01: $0.288 · 2025-01-02: $0.288
Insider trades
Dragisich Dominic
Director, President & CEO · 2026-10-20
Sell
$137.4K
Jews William L
Director · 2026-08-18
Sell
$541.0K
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Stats refreshed 2026-10-21 18:22:47 ET from Yahoo Finance (yfinance). "–" means the data isn't available. Refresh now

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coteau

Independent research · Not investment advice · Hypothetical unless marked Live · Data: Yahoo Finance (15-min delayed), SEC EDGAR, House Clerk · Important disclosures · Contact desk@coteau.app

Beta 0.9 · Oct 21, 2026