Stock AnalizChoice Hotels International Inc. CHH
Hotels/Resorts · data as of November 13, 2026
Choice Hotels International Inc. (CHH) is a consumer discretionary company listed in the US with a market value of about $5.3B. In the twelve months to September 30, 2026 it had revenue of $1.6B and net income of $206M, a net margin of 12.7%.
Its overall Stock Analiz score is 2.4 out of 5 (weak). The strongest part is track record (5/5); the weakest is value (1/5).
Key numbers: a P/E of 26.3, a price to free cash flow of 35.6, 5-year revenue growth of 16% a year, a 5-year average ROIC of 20%. A discounted cash flow model with moderate assumptions puts its intrinsic value about 19% below the current price.
Score: 2.4 / 5
Checks passed
- PEG below 1.5
- Profit margin improving
- 5-year EPS growth above 10% a year
- 5-year revenue growth above 8% a year
- 5-year average ROIC above 12%
- Profitable 5 years in a row
- ROE above 15%
- Positive free cash flow
Checks not passed
- P/E below 25
- P/E below the industry median
- P/FCF below 20
- Price below intrinsic value (DCF, moderate assumptions)
- Revenue growth above 10% last year
- 3-year revenue growth above 10% a year
- 3-year free cash flow growth above 10% a year
- Strong R&D investment or growth above 20%
Valuation
Growth and quality
Financials, last 10 years
| Fiscal year | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $1.6B | $1.6B | $1.6B | $1.5B | $1.4B | $1.1B | $774M | $1.1B | $1.0B | $941M | $808M |
| Net income | $206M | $370M | $300M | $259M | $332M | $289M | $75M | $223M | $216M | $122M | $107M |
| Free cash flow | $149M | $164M | $213M | $228M | $301M | $309M | $76M | $213M | $195M | $234M | $127M |
| EPS (diluted) | $4.51 | $7.90 | $6.20 | $5.07 | $5.99 | $5.15 | $1.35 | $3.98 | $3.80 | $2.15 | $2.46 |
| Net margin | 12.7% | 23.2% | 18.9% | 16.7% | 23.7% | 27.0% | 9.7% | 20.0% | 20.8% | 13.0% | 13.2% |
| ROIC | — | 16.5% | 19.1% | 16.8% | 25.3% | 24.0% | 8.9% | 30.6% | 44.2% | 48.9% | 28.3% |
From the company’s 10-K and 10-Q filings with the SEC. TTM = trailing twelve months.
What analysts expect
The average 12-month price target from 17 analysts is $117.18, 1% below the current price; targets range from $93.00 to $131.00; the consensus rating is “Hold”; expected EPS is $7.09 for the fiscal year ending December 31, 2026.
Frequently asked questions
What is Choice Hotels International’s P/E ratio?
About 26.3, based on the last twelve months of diluted earnings per share (forward P/E about 17.5).
Is Choice Hotels International stock undervalued?
Our DCF model with moderate assumptions puts its intrinsic value about 19% below the current market value. A model is a range, not a promise; try your own assumptions in the DCF calculator.
Does Choice Hotels International pay a dividend?
Yes. The dividend yield is about 0.96%, and it has paid dividends for 10 years in our data.
Is Choice Hotels International a good stock to buy?
We do not give buy or sell advice. Choice Hotels International scores 2.4 out of 5 on our five checks (value, growth, track record, financial health and shareholder returns); the checks above show why.
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Generated from SEC filings, analyst consensus estimates and market prices, rebuilt every day. Educational information, not investment advice.