Choice Hotels International, Inc. (CHH) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Royal Caribbean Group

Norwegian Cruise Line Holdings Ltd.

Carnival Corp.

Hyatt Hotels Corp.

Red Rock Resorts, Inc.

Vail Resorts, Inc.

Choice Hotels International, Inc.

Wyndham Hotels & Resorts, Inc.

Marriott International, Inc.

Hilton Worldwide Holdings, Inc.

Travel + Leisure Co.

Why is Choice Hotels International, Inc. ?

With a Negative Book Value, the company has a Weak Long Term Fundamental Strength

Positive results in Jun 25

RAW MATERIAL COST(Y) Fallen by -9.19% (YoY)
DEBT-EQUITY RATIO (HY) Lowest at -7,442.43 %

With ROE of -490.07%, it has a risky valuation with a -172.71 Price to Book Value

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -38.81%, its profits have risen by 10.8% ; the PEG ratio of the company is 2

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -38.81% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Hotels & Resorts)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Choice Hotels International, Inc. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Choice Hotels International, Inc.

-11.37%

-0.73

28.97%

S&P 500

27.0%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

15.58%

EBIT Growth (5y)

32.92%

EBIT to Interest (avg)

7.06

Debt to EBITDA (avg)

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

16.70

Tax Ratio

24.57%

Dividend Payout Ratio

14.55%

Pledged Shares

Institutional Holding

76.73%

ROCE (avg)

3,088.11%

ROE (avg)

1,336.37%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

45.69

EV to EBIT

18.18

EV to EBITDA

16.06

EV to Capital Employed

60.46

EV to Sales

5.16

PEG Ratio

1.05

Dividend Yield

0.65%

ROCE (Latest)

332.59%

ROE (Latest)

205.47%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bullish

Bearish

Dow Theory

Mildly Bullish

OBV

Mildly Bullish

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

2What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 65.43%

DEBTORS TURNOVER RATIO(HY)

Highest at 4.96 times

-18What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 226.81 MM

NET SALES(Q)

At USD 340.57 MM has Fallen at -14.69%

INTEREST COVERAGE RATIO(Q)

Lowest at 321.72

RAW MATERIAL COST(Y)

Grown by 10.21% (YoY

PRE-TAX PROFIT(Q)

Lowest at USD 30.55 MM

NET PROFIT(Q)

Lowest at USD 20.38 MM

EPS(Q)

Lowest at USD 0.44

Here's what is working for Choice Hotels International, Inc.

Debtors Turnover Ratio

Highest at 4.96 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Dividend Payout Ratio

Highest at 65.43%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Depreciation

Highest at USD 16.82 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for Choice Hotels International, Inc.

Pre-Tax Profit

At USD 30.55 MM has Fallen at -73.55%

over average net sales of the previous four periods of USD 115.51 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

At USD 20.38 MM has Fallen at -78.1%

over average net sales of the previous four periods of USD 93.09 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Net Sales

At USD 340.57 MM has Fallen at -14.69%

over average net sales of the previous four periods of USD 399.2 MM

MOJO Watch

Near term sales trend is very negative

Net Sales (USD MM)

Interest Coverage Ratio

Lowest at 321.72

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Cash Flow

Lowest at USD 226.81 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Pre-Tax Profit

Lowest at USD 30.55 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Net Profit

Lowest at USD 20.38 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

EPS

Lowest at USD 0.44

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)

Raw Material Cost

Grown by 10.21% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales