Choice Hotels International, Inc. (CHH)
Consumer Cyclical · NYQ · US
Fundamentals
Valuation and ratings
Choice Hotels International, Inc. trades at USD109.10, which is 42% above the USD63.32 our discounted cash flow model puts on the business. On that measure it screens as expensive, which is not the same as saying it will fall.
Our moat model scores it 74 out of 100, which is a wide moat. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 14.6 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About Choice Hotels International, Inc.
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.
CHH passes 1 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Smart money ownership
11 of the funds we track reported a position in their latest SEC 13F filing. Largest first:
- Travis Cocke, Voss Capital, LP$100.14M · 5.3% of book
- Two Sigma, TWO SIGMA INVESTMENTS, LP$94.84M · 0.1% of book
- Ken Griffin, CITADEL ADVISORS LLC$38.66M · 0.0% of book
- Joel Greenblatt, Gotham Asset Management, LLC$22.36M · 0.1% of book
- Israel Englander, MILLENNIUM MANAGEMENT LLC$20.15M · 0.0% of book
A word of warning on reading these figures: a 13F reports the market value of a holding, so a fund that traded nothing at all still appears to have sold when the price fell. We found 102 companies where the standard reading gives the opposite answer. Only the share count is honest.
Common questions
Is Choice Hotels International, Inc. (CHH) undervalued?
Against our discounted cash flow estimate of USD63.32, CHH at USD109.10 is 42% above fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
Which funds own CHH?
11 of the institutions we track reported a position in CHH in their most recent SEC 13F filing. A 13F is filed up to 45 days after quarter end, so it tells you what a fund held then, not what it holds now.
What is CHH's P/E ratio?
CHH trades at 14.6 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
The full research page for CHH, with financial statements, ownership detail, peer comparison and alerts, is free inside the app.
Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.