Choice Hotels International, In (CHH) Stock Fundamentals, Analysis & Risk Signals

Health score, price, valuation, risk signals, and key metrics at a glance.

Choice Hotels International, In

NYSE•Consumer Cyclical•Lodging

$98.19+0.77(0.01%)Pre-market

Market Cap

$4.40B

P/E

13.4x

P/S

2.7x

P/B

31.0x

Choice Hotels International, Inc., together with its subsidiaries, 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, Rodeway Inn, MainStay Suites, Suburban Studios, WoodSpring Suites, Everhome Suites, Cambria Hotels, Radisson Blu, Radisson RED, Radisson, Park Plaza, Country Inn & Suites by Radisson, Radisson Inn & Suites, Park Inn by Radisson, Radisson Individuals, and Radisson Collection brand names. The company was founded in 1939 and is headquartered in North Bethesda, Maryland.

How this company scores

GoodMetricSide Score: 60/100

Strongest: Profitability (25/25); weakest: Balance Sheet & Red Flags (8/25).

Profitability25/25

Growth17/25

Balance Sheet & Red Flags8/25

Cash & Earnings Quality10/25

Strengths

Strong marginsHigh ROEProfit converts from growthConsistent growth

Valuation vs. 5-year range

Today's multiple positioned against its own trailing range — a visual premium/discount check.

P/E · 13.4x5y range 12.0x – 31.1x

Currently below its 20-quarter median.

P/S · 2.7x5y range 2.7x – 8.0x

Currently below its 20-quarter median.

P/B · 31.0x5y range 15.1x – 906.7x

Watch items

Data-driven signals worth keeping an eye on across the last 8 quarters

High Risk

Margin Pressure

Watch

Operating margins declined 16.9% — watch for continued compression, which may signal competitive or cost pressure.

Earnings Quality

Watch

FCF/Net Income has dropped below 0.7x in 4 quarters — monitor for earnings quality deterioration.

Price & Volume

Market Cap $4.40B

Metrics at a Glance

as of June 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue: $1.62B
Q. Revenue: $440.76M
TTM EBITDA: $474.22M
TTM Op. Income: $408.04M
Q. Op. Income: $104.14M
TTM Net Income: $328.32M
Q. Net Income: $64.34M
EPS: $1.42
Shares Out.: $45.19M

$1.62B in TTM revenue grew 2.6% YoY, reaching $440.76M last quarter. TTM EBITDA of $474.22M and TTM operating income of $408.04M show growth is flowing through to the bottom line. TTM net income of $328.32M means revenue is converting into profit. Across the last 8 quarters, TTM revenue has risen for 4 consecutive quarters — an improving trend.

Margins

Gross, EBITDA, operating, and net margin trends

Gross Margin: 94.2%
EBITDA Margin: 27.4%
Op. Margin: 23.6%
Net Margin: 14.6%

Op. margin of 23.6% is down 5.6% YoY — costs are rising relative to revenue. Net margin at 14.6% and gross margin of 94.2% show how much of each revenue dollar survives to profit. Over the past year, operating margin is down 19% — an improving trend.

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio: 13.4x
P/S Ratio: 2.7x
P/B Ratio: 31.0x

At 13.4x P/E, the stock trades below typical market levels. P/S of 2.7x and P/B of 31.0x provide additional context. Use the growth and margin sections to judge whether the multiple is justified. Across the last 8 quarters, P/E has risen for 2 consecutive quarters — a weakening trend.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets: $2.99B
Cash: $42.83M
Long-Term Debt: $2.00B
Book Value: $142.18M
D/E Ratio: 14.1
Debt/EBITDA: 16.6

With $2.99B in assets and $2.00B in long-term debt, D/E is 14.1and book value is $142.18M — elevated leverage, meaning significant financial risk in a downturn. Over the past year, debt/equity is up 0% — an improving trend.

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow: $90.54M
TTM Free Cash Flow: $114.76M
FCF Margin: 7.1%
FCF / Net Income: 0.3

TTM FCF of $114.76M on $90.54M in operating cash flow. The FCF / Net Income ratio of 0.3x means cash covers only part of net income — earnings quality needs attention. Over the past year, free cash flow is down 31% — an improving trend.