CHH Consumer Cyclical

Choice Hotels International, Inc.

$118.94+0.28%

Price as of close on Nov 3, 2026 · Financials updated Oct 6, 2026

Basics

Sector: Consumer Cyclical
Industry: Lodging
Country: United States
Market cap: 5.4B USD
Enterprise value: 6.8B USD
Full-time employees: 1,754

Overall health

Strength: more profitable than most peersmore profitable than peers
Drawback: higher risk than most peers: less short-term liquidity (current ratio 0.93 vs a peer median of 1.48) and more debt relative to equity (14.08× vs a peer median of 0.46×)higher risk: less liquidity (current ratio 0.93 vs peers 1.48) and more debt vs equity (14.08× vs peers 0.46×)
About average: growth and valuation

Ranks #929 of 1,502 consumer cyclical companies (bottom 39%)

See how it ranks against its peers

Worth knowing

Returning more cash than it generates. Paid out $1.0B vs $604M of free cash flow over the 3 fiscal years to 2025.
Choice Hotels International returned $1.0B to shareholders over three years, 173% of the free cash flow it produced. That gap has to be covered by cash reserves or new debt, which can't last indefinitely.
Profit isn't fully turning into cash. Free cash flow is only 35% of reported profit.
Free cash flow is only 35% of reported profit. That usually means heavy spending on facilities and equipment, or cash tied up in inventory and unpaid bills. Worth checking whether it's a phase of investment or a lasting pattern.
Much more borrowing than peers. Debt is 14.1× equity vs a peer median of 0.5×.Debt is 14.1× equity vs peers 0.5×.
Debt is 14.1× shareholders' equity, against a peer median of 0.5×, among the highest 10% of its peer group.Debt is 14.1× shareholders' equity, vs peers 0.5×, among the highest 10% of its peer group.
Borrowing rising faster than profit. Since 2022: debt +58%, operating profit −6.3%.
Choice Hotels International's debt grew 58% since 2022 while operating profit changed −6.3%.

StockQuotient Score

46/ 100▼ 1 since Oct 27 close

Oct 5 47 → Nov 4 46 (-1)

Valuation

Is the price right?

41/100

Moderate▼ 2 since Oct 27 close

3/3 inputs reported · High confidence

Since last quarter: No major changeValuation also moves with the share price every day.

Why it changed since the Oct 27, 2026 close: Score 43 → 41

Share price +8.9%-3
Peer companies moved+1

Each step re-scores the company against its peers as they were on Oct 28, 2026; the parts add up to the change. Price effects on EBITDA yield are approximate.

Why

Mixed versus peers:

▲ Earnings yield
▼ FCF yield
▼ EBITDA yield

Compare with peers

Behind the score

Sector-normalized EBITDA, earnings, and free cash flow yields.

Earnings yield6.1%

SEC filings · 12 months to Jun 2026Reported value30% base weight · Z-score 0.53Sector median: 0.0439 · MAD: 0.0329

EBITDA yield6.5%

SEC filings · 12 months to Jun 2026Reported value50% base weight · Z-score -0.50Sector median: 0.0877 · MAD: 0.0461

Free cash flow yield2.1%

Yahoo Finance fallback · SEC cash flow or share count unavailable · trailing 12 months · operating cash flow − capital spendingReported value20% base weight · Z-score -0.74Sector median: 0.0614 · MAD: 0.0545

Other data (not scored)

Book yield2.7%

SEC filings · latest balance sheetOutlier capped at sector 5th/95th percentileInformational · 0% composite weightSector median: 0.5650 · MAD: 0.3500

Growth

Is it growing?

45/100

Moderate

3/3 inputs reported · High confidence

Since last quarter: No major change

Why

Held back by:

▼ 3-yr revenue

Compare with peers

Behind the score

Revenue and earnings-per-share growth over one year, and revenue growth over three years.

Earnings per share growth9.6%

SEC filings · 12 months to Jun 2026Reported value33% base weight · Z-score 0.21Sector median: 0.0420 · MAD: 0.2537

3-year revenue growth1.8%

SEC filings · 3 years to Jun 2026Reported value33% base weight · Z-score -0.39Sector median: 0.0425 · MAD: 0.0636

Revenue growth2.6%

SEC filings · 12 months to Jun 2026Reported value33% base weight · Z-score -0.17Sector median: 0.0373 · MAD: 0.0653

Profitability

Does it earn well?

92/100

Strong

3/3 inputs reported · High confidence

Since last quarter: No major change

Why

Stronger than most peers on:

▲ Operating margin
▲ ROA
▲ ROIC

Compare with peers

Behind the score

Return on invested capital, operating margin, and return on assets.

Operating margin25.2%

SEC filings · 12 months to Jun 2026Outlier capped at sector 5th/95th percentile33% base weight · Z-score 3.74Sector median: 0.0638 · MAD: 0.0461

Return on assets11.0%

SEC filings · 12 months to Jun 2026Reported value33% base weight · Z-score 3.02Sector median: 0.0331 · MAD: 0.0254

Return on invested capital15.3%

SEC filings · 12 months to Jun 2026Reported value33% base weight · Z-score 1.34Sector median: 0.0733 · MAD: 0.0600

Other data (not scored)

Gross margin90.3%

Yahoo Finance fallback · SEC figure unavailable or out of date · trailing 12 monthsOutlier capped at sector 5th/95th percentileInformational · 0% composite weightSector median: 0.3025 · MAD: 0.1399

Return on equity230.9%

SEC filings · 12 months to Jun 2026Outlier capped at sector 5th/95th percentileInformational · 0% composite weightSector median: 0.0746 · MAD: 0.0674

Risk

Debt, liquidity, price swings

Higher

Higher relative risk

3/3 inputs reported · High confidence

Since last quarter: No major change

Why

Weaker than most peers on:

▼ Debt / equity
▼ Current ratio

Compare with peers

Behind the score

Relative to sector peers: 0 = lower relative risk · 1 = moderate · 2 = higher. Based on leverage, beta and liquidity.

Beta0.71

Yahoo Finance · 5-year monthly beta vs the marketReported value33% base weight · Z-score -0.27Sector median: 0.6345 · MAD: 0.2980

Current ratio0.93×

SEC filings · latest balance sheetReported value33% base weight · Z-score -0.99Sector median: 1.4800 · MAD: 0.5570

Debt / equity14.08×

SEC filings · latest balance sheetOutlier capped at sector 5th/95th percentile33% base weight · Z-score -9.02Sector median: 0.4646 · MAD: 0.3556

Valuation, growth and profitability scores: higher is better. Risk: 0 is lower, 2 is higher. Risk is a relative proxy, not a bankruptcy probability. Scores depend on available sector peers.

Questions investors ask about Choice Hotels International

Is Choice Hotels International getting weaker?: Its latest SEC filing (Aug 5, 2026) showed no major changes. Its overall score is 46/100, down 1 since Oct 28, 2026.
How is Choice Hotels International valued vs its peers?: Priced about in line with its peers. Valuation scores 41/100 against 1,612 consumer cyclical peers. Earnings yield 6.1% vs a peer median of 4.4% (stronger than 66% of peers).Earnings yield 6.1% vs peers 4.4% (stronger than 66% of peers). Free cash flow yield 2.1% vs a peer median of 6.1% (weaker than 73% of peers).Free cash flow yield 2.1% vs peers 6.1% (weaker than 73% of peers).
Is Choice Hotels International growing?: At about the same pace as its peers. Growth scores 45/100 against 1,612 consumer cyclical peers. 3-year revenue growth 1.8% vs a peer median of 4.3% (weaker than 62% of peers).3-year revenue growth 1.8% vs peers 4.3% (weaker than 62% of peers).
How profitable is Choice Hotels International?: More profitable than most of its peers. Profitability scores 92/100 against 1,612 consumer cyclical peers. Operating margin 25.2% vs a peer median of 6.4% (stronger than 95% of peers).Operating margin 25.2% vs peers 6.4% (stronger than 95% of peers).
How risky is Choice Hotels International?: Higher risk relative to 1,612 consumer cyclical peers, judged on debt, liquidity and share-price swings. Debt / equity 14.08× vs a peer median of 0.46× (weaker than 100% of peers).Debt / equity 14.08× vs peers 0.46× (weaker than 100% of peers). A relative measure, not a bankruptcy probability.

Latest filing: what changed

Quarter ended Jun 30, 2026 · filed Aug 5, 2026 · compared with the quarter ended Mar 31, 2026

No major changes

	Previous quarter	Latest quarter	Change
Revenue (12 months)	1.6B USD	1.6B USD	+0.9%
Net income (12 months)	345.7M USD	328.3M USD	−5.0%
Operating margin	26.7%	25.2%	−1.5 pts
Debt	2.0B USD	2.0B USD	−0.0%
Cash	43.9M USD	42.8M USD	−2.4%
Shares outstanding	45.5M	45.0M	−1.1%

From the company’s own SEC filings, as filed. Twelve-month figures roll forward one quarter at a time.

Industry valuation context

Sector: Consumer Cyclical · 182 companies

Valuations in Consumer Cyclical are within their usual range since 2016.

36% of months since 2016 were valued lower than now.
15% of companies are in the most expensive fifth of their own price-to-sales history.
Over 24 months, company values +0% and earnings +10% (medians): prices and earnings moved broadly together.
Median price-to-sales is −55% vs the whole market, against a usual −41%.

2016Shaded: most expensive fifth of its range2026

Shown for Consumer Cyclical: too few Lodging companies have a long enough history of their own.

Financials

Fiscal years from SEC annual filings · change vs the prior year

Key ratios	FY 2021	FY 2022	FY 2023	FY 2024	FY 2025	Change
Operating margin	40.1%	34.1%	24.3%	29.3%	28.1%	▼ 1.2 pts
Net margin	27.0%	23.7%	16.7%	18.9%	23.2%	▲ 4.3 pts
Return on assets (ROA)	15.0%	15.8%	10.8%	11.8%	12.7%	▲ 0.8 pts
Return on equity (ROE)	108.7%	214.8%	—	—	204.1%	—
Free cash flow margin	—	21.5%	14.8%	13.4%	10.2%	▼ 3.2 pts
Current ratio	1.34×	0.80×	0.31×	0.73×	0.87×	▲ 19%
Debt to equity	3.99×	7.78×	—	—	10.52×	—
Interest coverage	9.19×	10.93×	5.88×	5.32×	4.92×	▼ 7.6%

CHH price history

Price history is added with the daily price update and will appear after the next one.

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Bringing the fundamentals into focus…

Overall health

Strength: more profitable than most peersmore profitable than peers

Drawback: higher risk than most peers: less short-term liquidity (current ratio 0.93 vs a peer median of 1.48) and more debt relative to equity (14.08× vs a peer median of 0.46×)higher risk: less liquidity (current ratio 0.93 vs peers 1.48) and more debt vs equity (14.08× vs peers 0.46×)

About average: growth and valuation

Ranks #929 of 1,502 consumer cyclical companies (bottom 39%)

See how it ranks against its peers

Worth knowing

Returning more cash than it generates. Paid out $1.0B vs $604M of free cash flow over the 3 fiscal years to 2025.

Choice Hotels International returned $1.0B to shareholders over three years, 173% of the free cash flow it produced. That gap has to be covered by cash reserves or new debt, which can't last indefinitely.

Profit isn't fully turning into cash. Free cash flow is only 35% of reported profit.

Free cash flow is only 35% of reported profit. That usually means heavy spending on facilities and equipment, or cash tied up in inventory and unpaid bills. Worth checking whether it's a phase of investment or a lasting pattern.

Much more borrowing than peers. Debt is 14.1× equity vs a peer median of 0.5×.Debt is 14.1× equity vs peers 0.5×.

Debt is 14.1× shareholders' equity, against a peer median of 0.5×, among the highest 10% of its peer group.Debt is 14.1× shareholders' equity, vs peers 0.5×, among the highest 10% of its peer group.

Borrowing rising faster than profit. Since 2022: debt +58%, operating profit −6.3%.

Choice Hotels International's debt grew 58% since 2022 while operating profit changed −6.3%.

Questions investors ask about Choice Hotels International

Is Choice Hotels International getting weaker?

Its latest SEC filing (Aug 5, 2026) showed no major changes. Its overall score is 46/100, down 1 since Oct 28, 2026.

How is Choice Hotels International valued vs its peers?

Priced about in line with its peers. Valuation scores 41/100 against 1,612 consumer cyclical peers. Earnings yield 6.1% vs a peer median of 4.4% (stronger than 66% of peers).Earnings yield 6.1% vs peers 4.4% (stronger than 66% of peers). Free cash flow yield 2.1% vs a peer median of 6.1% (weaker than 73% of peers).Free cash flow yield 2.1% vs peers 6.1% (weaker than 73% of peers).

Is Choice Hotels International growing?

At about the same pace as its peers. Growth scores 45/100 against 1,612 consumer cyclical peers. 3-year revenue growth 1.8% vs a peer median of 4.3% (weaker than 62% of peers).3-year revenue growth 1.8% vs peers 4.3% (weaker than 62% of peers).

How profitable is Choice Hotels International?

More profitable than most of its peers. Profitability scores 92/100 against 1,612 consumer cyclical peers. Operating margin 25.2% vs a peer median of 6.4% (stronger than 95% of peers).Operating margin 25.2% vs peers 6.4% (stronger than 95% of peers).

How risky is Choice Hotels International?

Higher risk relative to 1,612 consumer cyclical peers, judged on debt, liquidity and share-price swings. Debt / equity 14.08× vs a peer median of 0.46× (weaker than 100% of peers).Debt / equity 14.08× vs peers 0.46× (weaker than 100% of peers). A relative measure, not a bankruptcy probability.

Previous quarter

Latest quarter

Change

Revenue (12 months)

1.6B USD

1.6B USD

+0.9%

Net income (12 months)

345.7M USD

328.3M USD

−5.0%

Operating margin

26.7%

25.2%

−1.5 pts

Debt

2.0B USD

2.0B USD

−0.0%

Cash

43.9M USD

42.8M USD

−2.4%

Shares outstanding

45.5M

45.0M

−1.1%

Key ratios

FY 2021

FY 2022

FY 2023

FY 2024

FY 2025

Change

Operating margin

40.1%

34.1%

24.3%

29.3%

28.1%

▼ 1.2 pts

Net margin

27.0%

23.7%

16.7%

18.9%

23.2%

▲ 4.3 pts

Return on assets (ROA)

15.0%

15.8%

10.8%

11.8%

12.7%

▲ 0.8 pts

Return on equity (ROE)

108.7%

214.8%

—

204.1%

—

Free cash flow margin

—

21.5%

14.8%

13.4%

10.2%

▼ 3.2 pts

Current ratio

1.34×

0.80×

0.31×

0.73×

0.87×

▲ 19%

Debt to equity

3.99×

7.78×

—

10.52×

—

Interest coverage

9.19×

10.93×

5.88×

5.32×

4.92×

▼ 7.6%