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Choice Hotels International, Inc. (CHH) 10-Year Financial Performance & Capital Metrics

CHH • • Industrial / General
Consumer CyclicalHotels & LodgingGlobal Hotel FranchisorsGlobal Economy & Mid-Scale Franchisors
AboutChoice 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.Show more
  • Revenue $1.58B +2.6%
  • EBITDA $535M +28.9%
  • Net Income $300M +15.9%
  • EPS (Diluted) 6.20 +22.3%
  • Gross Margin 46.96% +5.0%
  • EBITDA Margin 33.73% +25.6%
  • Operating Margin 29.26% +20.5%
  • Net Margin 18.91% +12.9%
  • ROE -
  • ROIC 19.92% +9.4%
  • Debt/Equity -
  • Interest Coverage 5.32 -9.5%
Technical Analysis

Key Insights

Based on financial data analysis

✓Strengths

  • ✓Excellent 3Y average ROE of 214.9%
  • ✓Strong Piotroski F-Score: 7/9
  • ✓Share count reduced 6.9% through buybacks
  • ✓Healthy 5Y average net margin of 19.2%

✗Weaknesses

  • ✗Trading more than 30% below 52-week high

* These insights are generated automatically based on available financial data. Please conduct your own research before making investment decisions.

Price & Volume

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Growth Metrics

Revenue CAGR

10Y7.65%
5Y7.29%
3Y14.02%
TTM2.76%

Profit (Net Income) CAGR

10Y9.3%
5Y6.1%
3Y1.22%
TTM51.13%

EPS CAGR

10Y11.43%
5Y9.27%
3Y6.38%
TTM55.45%

ROCE

10Y Avg33.57%
5Y Avg24.81%
3Y Avg27.34%
Latest26.35%

Peer Comparison

Global Economy & Mid-Scale Franchisors
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Sector-Specific
NameMarket CapCurrent PriceP/E RatioRevenue Growth 1YNet MarginROEFCF YieldDebt/Equity
WHWyndham Hotels & Resorts, Inc.6.08B80.4622.290.79%23.54%57.98%3.96%3.79
CHHChoice Hotels International, Inc.5.05B109.1017.602.63%23.93%255.1%3.44%

Profit & Loss

Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021Dec 2022Dec 2023Dec 2024
Sales/Revenue+859.88M924.64M1.01B1.04B1.11B774.07M1.07B1.4B1.54B1.58B
Revenue Growth %0.13%0.08%0.09%0.03%0.07%-0.31%0.38%0.31%0.1%0.03%
Cost of Goods Sold+488.76M525.72M567.08M534.27M593.59M462.91M469.7M701.9M853.88M840.67M
COGS % of Revenue0.57%0.57%0.56%0.51%0.53%0.6%0.44%0.5%0.55%0.53%
Gross Profit+371.12M398.93M440.27M507.04M521.23M311.16M599.6M700.05M690.28M744.17M
Gross Margin %0.43%0.43%0.44%0.49%0.47%0.4%0.56%0.5%0.45%0.47%
Gross Profit Growth %0.07%0.07%0.1%0.15%0.03%-0.4%0.93%0.17%-0.01%0.08%
Operating Expenses+145.8M160.43M175.81M184.36M187.66M189.49M170.66M221.45M315.25M280.39M
OpEx % of Revenue0.17%0.17%0.17%0.18%0.17%0.24%0.16%0.16%0.2%0.18%
Selling, General & Admin134.25M148.73M163.38M170.03M168.83M148.91M145.62M167.7M216.08M219.88M
SG&A % of Revenue0.16%0.16%0.16%0.16%0.15%0.19%0.14%0.12%0.14%0.14%
Research & Development9.6M11.8M11.7M11.2M9.7M00000
R&D % of Revenue0.01%0.01%0.01%0.01%0.01%-----
Other Operating Expenses820K1.5M0-1.44M18.83M40.58M25.04M53.75M99.17M60.52M
Operating Income+225.32M238.9M264.43M318.47M318.64M121.67M428.93M478.6M375.03M463.77M
Operating Margin %0.26%0.26%0.26%0.31%0.29%0.16%0.4%0.34%0.24%0.29%
Operating Income Growth %0.05%0.06%0.11%0.2%0%-0.62%2.53%0.12%-0.22%0.24%
EBITDA+236.86M925.04M916.33M1.04B1.1B170.12M479.43M542.51M414.69M534.63M
EBITDA Margin %0.28%1%0.91%1%0.99%0.22%0.45%0.39%0.27%0.34%
EBITDA Growth %0.06%2.91%-0.01%0.13%0.06%-0.85%1.82%0.13%-0.24%0.29%
D&A (Non-Cash Add-back)11.54M686.15M651.9M718.62M781.25M48.46M50.49M63.91M39.66M70.86M
EBIT225.32M192.59M294.26M319.17M316.74M102.03M423.17M480.6M400.74M482.78M
Net Interest Income+-41.25M-40.91M-39.12M-38.46M-36.81M-41.34M-41.7M-36.51M-56.02M-78.48M
Interest Income1.58M3.54M5.92M7.45M10M7.69M4.98M7.29M7.76M8.65M
Interest Expense42.83M44.45M45.04M45.91M46.81M49.03M46.68M43.8M63.78M87.13M
Other Income/Expense-41.33M12.93M-40.44M-45.22M-48.61M-68.66M-52.44M-41.8M-38.07M-68.13M
Pretax Income+183.99M199.98M224M273.26M269.93M53.01M376.49M436.81M336.96M395.64M
Pretax Margin %0.21%0.22%0.22%0.26%0.24%0.07%0.35%0.31%0.22%0.25%
Income Tax+55.96M60.61M109.1M56.9M47.05M-22.38M87.53M104.65M78.45M95.98M
Effective Tax Rate %0.7%0.7%0.51%0.79%0.83%1.42%0.77%0.76%0.77%0.76%
Net Income+128.03M139.37M114.89M216.35M222.88M75.39M288.96M332.15M258.51M299.67M
Net Margin %0.15%0.15%0.11%0.21%0.2%0.1%0.27%0.24%0.17%0.19%
Net Income Growth %0.04%0.09%-0.18%0.88%0.03%-0.66%2.83%0.15%-0.22%0.16%
Net Income (Continuing)128.03M106.71M122.33M216.35M222.88M75.39M288.96M332.15M258.51M299.67M
Discontinued Operations0000000000
Minority Interest0638.14M491.19M0000000
EPS (Diluted)+2.222.462.023.803.981.355.155.995.076.20
EPS Growth %0.06%0.11%-0.18%0.88%0.05%-0.66%2.81%0.16%-0.15%0.22%
EPS (Basic)2.242.482.033.834.001.365.206.055.116.26
Diluted Shares Outstanding57.67M56.65M56.88M56.94M55.67M55.53M55.88M55.12M50.7M47.2M
Basic Shares Outstanding57.16M56.2M56.6M56.49M55.36M55.17M55.38M54.59M50.34M47.2M
Dividend Payout Ratio0.35%0.33%0.42%0.23%0.22%0.34%0.09%0.16%0.22%0.19%

Balance Sheet

Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021Dec 2022Dec 2023Dec 2024
Total Current Assets+310.95M344.87M402.93M243.78M236.59M432.91M761.66M347.92M296.53M339.09M
Cash & Short-Term Investments193.44M202.46M235.34M26.64M33.77M234.78M511.61M41.57M26.75M40.18M
Cash Only193.44M202.46M235.34M26.64M33.77M234.78M511.61M41.57M26.75M40.18M
Short-Term Investments0000000000
Accounts Receivable89.35M107.34M125.87M138.02M178.1M178.16M220.11M273.84M195.9M257.59M
Days Sales Outstanding37.9342.3745.6148.3858.3184.0175.1371.2946.359.33
Inventory00025.41M000000
Days Inventory Outstanding---17.36------
Other Current Assets14.02M12.86M25.02M35.3M3.71M3.82M14.34M2.88M39.21M4.73M
Total Non-Current Assets+406.06M507.6M524.67M894.59M1.15B1.15B1.17B1.75B2.1B2.19B
Property, Plant & Equipment98.36M113.08M102.66M127.53M405.29M372.89M431.85M516.59M578.58M687.8M
Fixed Asset Turnover8.74x8.18x9.81x8.16x2.75x2.08x2.48x2.71x2.67x2.30x
Goodwill79.33M78.91M80.76M169M159.2M159.2M159.2M218.65M220.19M220.19M
Intangible Assets11.95M15.74M14.67M271.19M290.42M303.73M312.39M742.19M811.08M884.01M
Long-Term Investments17.67M111.81M155.06M128.41M103.63M86.98M61.91M62.29M226.7M47.6M
Other Non-Current Assets68.15M51.18M74.81M167.84M170.8M163.88M136.17M126.34M172.19M243.53M
Total Assets+717.01M852.47M927.61M1.14B1.39B1.59B1.93B2.1B2.39B2.53B
Asset Turnover1.20x1.08x1.09x0.91x0.80x0.49x0.55x0.67x0.64x0.63x
Asset Growth %0.11%0.19%0.09%0.23%0.22%0.14%0.22%0.09%0.14%0.06%
Total Current Liabilities+208.02M263.67M294.5M318.44M325.89M255.85M570.29M435.9M942.69M462.72M
Accounts Payable64.43M48.07M67.84M73.51M73.45M83.33M81.17M118.86M131.28M134.87M
Days Payables Outstanding48.1233.3843.6650.2245.1665.763.0861.8156.1258.56
Short-Term Debt1.19M1.2M1.23M1.1M7.51M0216.35M2.98M499.27M0
Deferred Revenue (Current)1000K1000K1000K1000K1000K1000K1000K1000K1000K1000K
Other Current Liabilities42.12M51.68M19.84M147.6M137.75M89.87M150.54M181.55M167.12M168.75M
Current Ratio1.49x1.31x1.37x0.77x0.73x1.69x1.34x0.80x0.31x0.73x
Quick Ratio1.49x1.31x1.37x0.69x0.73x1.69x1.34x0.80x0.31x0.73x
Cash Conversion Cycle---15.52------
Total Non-Current Liabilities+904.89M900.15M845.21M1B1.08B1.34B1.1B1.51B1.42B2.11B
Long-Term Debt812.95M839.41M725.29M753.51M844.1M1.06B844.12M1.2B1.07B1.77B
Capital Lease Obligations000021.27M12.74M35.49M70.99M109.48M113.25M
Deferred Tax Liabilities506K292K39K0000000
Other Non-Current Liabilities47.7M45.25M145.35M139.91M106.26M143.35M110.25M105.93M104.78M99.04M
Total Liabilities1.11B1.16B1.14B1.32B1.41B1.59B1.67B1.95B2.36B2.58B
Total Debt+814.14M840.6M726.52M754.61M882.98M1.08B1.11B1.29B1.68B1.89B
Net Debt620.7M638.14M491.19M727.97M849.22M847.3M596.36M1.24B1.65B1.85B
Debt / Equity------4.17x8.31x47.24x-
Debt / EBITDA3.44x0.91x0.79x0.73x0.80x6.36x2.31x2.37x4.06x3.53x
Net Debt / EBITDA2.62x0.69x0.54x0.70x0.77x4.98x1.24x2.29x3.99x3.45x
Interest Coverage5.26x5.37x5.87x6.94x6.81x2.48x9.19x10.93x5.88x5.32x
Total Equity+-395.9M-311.35M-258.6M-183.77M-23.51M-5.75M265.88M154.66M35.6M-45.27M
Equity Growth %0.08%0.21%0.17%0.29%0.87%0.76%47.22%-0.42%-0.77%-2.27%
Book Value per Share-6.86-5.50-4.55-3.23-0.42-0.104.762.810.70-0.96
Total Shareholders' Equity-395.9M-311.35M-212.1M-183.77M-23.51M-5.75M265.88M154.66M35.6M-45.27M
Common Stock951K951K951K951K951K951K951K951K951K951K
Retained Earnings514.9M607.56M673.77M795.18M968.83M1.02B1.28B1.56B1.76B2B
Treasury Stock-1.05B-1.07B-1.06B-1.19B-1.22B-1.26B-1.27B-1.69B-2.05B-2.41B
Accumulated OCI-8.78M-8.52M-4.7M-5.45M-4.55M-4.65M-4.57M-5.21M-5.67M-6.19M
Minority Interest0638.14M491.19M0000000

Cash Flow

Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021Dec 2022Dec 2023Dec 2024
Cash from Operations+159.87M152.03M257.37M242.9M270.56M115.05M383.7M367.06M296.55M319.4M
Operating CF Margin %0.19%0.16%0.26%0.23%0.24%0.15%0.36%0.26%0.19%0.2%
Operating CF Growth %-0.13%-0.05%0.69%-0.06%0.11%-0.57%2.34%-0.04%-0.19%0.08%
Net Income128.03M139.37M114.89M216.35M222.88M75.39M288.96M332.15M258.51M299.67M
Depreciation & Amortization11.54M11.71M12.43M33.93M36.12M48.46M50.49M63.91M75.73M70.86M
Stock-Based Compensation11.8M15.46M23.34M15.99M17.61M9.69M35.73M42.97M46.81M43.25M
Deferred Taxes615K-10.54M39.32M-3.51M9.81M-44.83M-1.01M-19.64M-1.34M-19.03M
Other Non-Cash Items6.69M3.89M9.3M-17.83M5.96M14.86M-13.72M-47.26M-89.29M-92.74M
Working Capital Changes1.19M-7.85M58.09M-2.03M-21.82M11.48M23.24M-5.08M6.13M17.4M
Change in Receivables401K-21.92M-23.13M0000000
Change in Inventory-17.63M-18.21M-22.14M0000000
Change in Payables6.49M-13.69M12.46M0000000
Cash from Investing+-99.81M-98.47M-90.11M-321.25M-251.17M-29.47M-78.93M-442.43M-265.63M-84.57M
Capital Expenditures-27.77M-27.77M-25.95M-49.48M-64.04M-39.95M-77.87M-89.95M-116.28M0
CapEx % of Revenue0.03%0.03%0.03%0.05%0.06%0.05%0.07%0.06%0.08%0.09%
Acquisitions----------
Investments----------
Other Investing-34.99M-6.36M-13.4M-30.79M-156.49M8.59M-14.74M201.1M-34.34M-192.72M
Cash from Financing+-79.45M-44.08M-135.78M-129.42M-12.49M115.4M-27.72M-394.15M-45.94M-221.71M
Debt Issued (Net)----------
Equity Issued (Net)----------
Dividends Paid-45.21M-46.18M-48.65M-48.72M-48.09M-25.27M-25.04M-52.55M-56.46M-55.5M
Share Repurchases----------
Other Financing3.04M-284K38.34M38.94M-6.93M5.58M10.69M-54.03M4.79M9.46M
Net Change in Cash----------
Free Cash Flow+132.11M124.26M231.42M193.42M206.51M75.1M305.83M277.11M178.26M173.55M
FCF Margin %0.15%0.13%0.23%0.19%0.19%0.1%0.29%0.2%0.12%0.11%
FCF Growth %-0.19%-0.06%0.86%-0.16%0.07%-0.64%3.07%-0.09%-0.36%-0.03%
FCF per Share2.292.194.073.403.711.355.475.033.523.68
FCF Conversion (FCF/Net Income)1.25x1.09x2.24x1.12x1.21x1.53x1.33x1.11x1.15x1.07x
Interest Paid40.06M41.99M42.41M43.25M48.18M45.15M43.94M46.91M60.77M67.18M
Taxes Paid54.99M65.68M39.18M77.36M41.86M8.61M106.54M115.97M94.34M108.17M

Key Ratios

Metric2015201620172018201920202021202220232024
Return on Equity (ROE)------222.16%157.96%271.74%-
Return on Invested Capital (ROIC)90%64.97%70.91%61.5%34.89%10.95%37.76%31.76%18.21%19.92%
Gross Margin43.16%43.14%43.71%48.69%46.75%40.2%56.07%49.93%44.7%46.96%
Net Margin14.89%15.07%11.41%20.78%19.99%9.74%27.02%23.69%16.74%18.91%
Debt / Equity------4.17x8.31x47.24x-
Interest Coverage5.26x5.37x5.87x6.94x6.81x2.48x9.19x10.93x5.88x5.32x
FCF Conversion1.25x1.09x2.24x1.12x1.21x1.53x1.33x1.11x1.15x1.07x
Revenue Growth13.44%7.53%8.95%3.37%7.06%-30.57%38.14%31.11%10.14%2.63%

Revenue by Segment

2015201620172018201920202021202220232024
Other Revenues From Franchised And Managed Properties-------702.75M784.16M793.65M
Other Revenues From Franchised And Managed Properties Growth--------11.58%1.21%
Royalty, Licensing And Management Fees-------471.76M513.41M514.57M
Royalty, Licensing And Management Fees Growth--------8.83%0.23%
Owned Hotels----20.28M20.17M37.83M70.83M97.64M113.46M
Owned Hotels Growth------0.56%87.59%87.21%37.86%16.20%
Platform and Procurement Services--------75.11M75.75M
Platform and Procurement Services Growth---------0.85%
Other Revenue Topic 606 And Not Topic 606-------64.97M46.05M61.8M
Other Revenue Topic 606 And Not Topic 606 Growth---------29.12%34.21%
Initial Franchise Fees------26.34M28.07M27.79M25.61M
Initial Franchise Fees Growth-------6.58%-1.02%-7.85%
Marketing and Reservation System-----402.57M528.84M---
Marketing and Reservation System Growth------31.37%---
Royalty Fees-----263.31M397.22M---
Royalty Fees Growth------50.86%---
Procurement Services-----45.24M50.39M---
Procurement Services Growth------11.39%---
Other Revenue----40.04M-----
Other Revenue Growth----------
Initial Franchising and Relicensing Fees---104.29M------
Initial Franchising and Relicensing Fees Growth----------
Loyalty Programs---53.75M------
Loyalty Programs Growth----------
System Implementation Fees---8.76M------
System Implementation Fees Growth----------
Procurement Service Fees---7.87M------
Procurement Service Fees Growth----------
Product and Service, Other---3.22M------
Product and Service, Other Growth----------
Franchising855.46M915.83M996.54M-------
Franchising Growth-7.06%8.81%-------
Corporate and Other3.23M6.88M7.77M-------
Corporate and Other Growth-113.10%12.93%-------
SkyTouch Technology1.19M1.93M3.04M-------
SkyTouch Technology Growth-62.98%57.53%-------
Intersegment Eliminations----------
Intersegment Eliminations Growth----------

Revenue by Geography

2015201620172018201920202021202220232024
Foreign Operations-----42.6M46.8M70.2M103.2M102.7M
Foreign Operations Growth------9.86%50.00%47.01%-0.48%

Frequently Asked Questions

Valuation & Price

Choice Hotels International, Inc. (CHH) has a price-to-earnings (P/E) ratio of 17.6x. This is roughly in line with market averages.

Growth & Financials

Choice Hotels International, Inc. (CHH) reported $1.60B in revenue for fiscal year 2024. This represents a 150% increase from $638.8M in 2011.

Choice Hotels International, Inc. (CHH) grew revenue by 2.6% over the past year. Growth has been modest.

Yes, Choice Hotels International, Inc. (CHH) is profitable, generating $382.1M in net income for fiscal year 2024 (18.9% net margin).

Dividend & Returns

Yes, Choice Hotels International, Inc. (CHH) pays a dividend with a yield of 1.08%. This makes it attractive for income-focused investors.

Choice Hotels International, Inc. (CHH) generated $210.5M in free cash flow for fiscal year 2024. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.

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