Is Choice Hotels Stock a Good Investment?
Choice Hotels Investment Advice | CHH |
- Examine Choice Hotels' financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Choice Hotels' leadership team and their track record. Good management can help Choice Hotels navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Hotels, Resorts & Cruise Lines space and any emerging trends that could impact Choice Hotels' business and its evolving consumer preferences.
- Compare Choice Hotels' performance and market position to its competitors. Analyze how Choice Hotels is positioned in terms of product offerings, innovation, and market share.
- Check if Choice Hotels pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Choice Hotels' stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Choice Hotels International stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Choice Hotels International is a good investment.
Sell | Buy |
Strong Hold
Market Performance | Very Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Fairly Valued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Slowly supersedes the market | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Hold | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Possible Manipulator | Details |
Examine Choice Hotels Stock
Researching Choice Hotels' stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 42.0% of the company shares are held by company insiders. The company has Price/Earnings To Growth (PEG) ratio of 1.7. Choice Hotels Intern recorded earning per share (EPS) of 6.21. The entity last dividend was issued on the 1st of April 2025. The firm had 2:1 split on the 24th of October 2005.
To determine if Choice Hotels is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Choice Hotels' research are outlined below:
| Choice Hotels Intern generated a negative expected return over the last 90 days | |
| About 66.0% of the company shares are held by institutions such as insurance companies | |
| Latest headline from finance.yahoo.com: Theres A Lot To Like About Choice Hotels Internationals Upcoming US0.2875 Dividend |
Choice Hotels uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Choice Hotels International. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Choice Hotels' previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 21st of February 2024 Upcoming Quarterly Report | View | |
| 14th of May 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 21st of February 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Earnings surprises can significantly impact Choice Hotels' stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Choice Hotels' investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2002-04-23 | 2002-03-31 | 0.09 | 0.1 | 0.01 | 11 | ||
2001-04-25 | 2001-03-31 | 0.09 | 0.1 | 0.01 | 11 | ||
2000-04-20 | 2000-03-31 | 0.09 | 0.08 | -0.01 | 11 | ||
1999-02-04 | 1998-12-31 | 0.1 | 0.11 | 0.01 | 10 | ||
1998-01-08 | 1997-12-31 | 0.1 | 0.11 | 0.01 | 10 | ||
2002-07-17 | 2002-06-30 | 0.17 | 0.19 | 0.02 | 11 | ||
1999-10-21 | 1999-09-30 | 0.15 | 0.17 | 0.02 | 13 | ||
1999-04-21 | 1999-03-31 | 0.07 | 0.09 | 0.02 | 28 |
Know Choice Hotels' Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Choice Hotels is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Choice Hotels International backward and forwards among themselves. Choice Hotels' institutional investor refers to the entity that pools money to purchase Choice Hotels' securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Wellington Management Company Llp | 2024-12-31 | 484.5 K | Geode Capital Management, Llc | 2024-12-31 | 414.5 K | Raymond James & Associates | 2024-09-30 | 365 K | Jpmorgan Chase & Co | 2024-12-31 | 359.6 K | Fort Washington Investment Advisors Inc | 2024-12-31 | 355.9 K | Envestnet Asset Management Inc | 2024-12-31 | 316.6 K | Bank Of America Corp | 2024-12-31 | 313.5 K | Balyasny Asset Management Llc | 2024-12-31 | 292.8 K | Charles Schwab Investment Management Inc | 2024-12-31 | 279.1 K | Bamco Inc | 2024-12-31 | 4.7 M | Kayne Anderson Rudnick Investment Management Llc | 2024-12-31 | 4 M |
Choice Hotels' market capitalization trends
The company currently falls under 'Mid-Cap' category with a total capitalization of 6.24 B.Market Cap |
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Choice Hotels' profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.21 | 0.30 | |
| Return On Capital Employed | 0.22 | 0.21 | |
| Return On Assets | 0.12 | 0.21 | |
| Return On Equity | (6.62) | (6.29) |
Determining Choice Hotels' profitability involves analyzing its financial statements and using various financial metrics to determine if Choice Hotels is a good buy. For example, gross profit margin measures Choice Hotels' profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Choice Hotels' profitability and make more informed investment decisions.
Evaluate Choice Hotels' management efficiency
Choice Hotels Intern has Return on Asset of 0.1219 % which means that on every $100 spent on assets, it made $0.1219 of profit. This is way below average. In the same way, it shows a return on shareholders' equity (ROE) of 0.881 %, implying that it generated $0.881 on every 100 dollars invested. Choice Hotels' management efficiency ratios could be used to measure how well Choice Hotels manages its routine affairs as well as how well it operates its assets and liabilities. As of now, Choice Hotels' Return On Tangible Assets are decreasing as compared to previous years. The Choice Hotels' current Return On Assets is estimated to increase to 0.21, while Return On Capital Employed is projected to decrease to 0.21. As of now, Choice Hotels' Other Current Assets are increasing as compared to previous years. The Choice Hotels' current Intangible Assets is estimated to increase to about 928.2 M, while Total Current Assets are projected to decrease to under 223.5 M.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | (0.95) | (1.00) | |
| Tangible Book Value Per Share | (24.12) | (22.92) | |
| Enterprise Value Over EBITDA | 15.56 | 10.50 | |
| Price Book Value Ratio | (149.45) | (141.98) | |
| Enterprise Value Multiple | 15.56 | 10.50 | |
| Price Fair Value | (149.45) | (141.98) | |
| Enterprise Value | 4.3 B | 2.4 B |
Examining the leadership quality of Choice Hotels International offers valuable insights into its operational efficiency and financial health. This analysis assists investors in making informed decisions regarding the stock.
Basic technical analysis of Choice Stock
As of the 28th of March, Choice Hotels shows the Mean Deviation of 1.1, standard deviation of 1.59, and Risk Adjusted Performance of (0.03). Choice Hotels Intern technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices.Choice Hotels' insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Choice Hotels insiders, such as employees or executives, is commonly permitted as long as it does not rely on Choice Hotels' material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Choice Hotels insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Choice Hotels' Outstanding Corporate Bonds
Choice Hotels issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Choice Hotels Intern uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Choice bonds can be classified according to their maturity, which is the date when Choice Hotels International has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| US169905AF36 Corp BondUS169905AF36 | View | |
| US169905AG19 Corp BondUS169905AG19 | View | |
| Dana 575 percent Corp BondUS235822AB96 | View | |
| Morgan Stanley 3971 Corp BondUS61744YAL20 | View | |
| AerCap Global Aviation Corp BondUS00773HAA59 | View |
Understand Choice Hotels' technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Choice Hotels' various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | (0.03) | |||
| Market Risk Adjusted Performance | (0.14) | |||
| Mean Deviation | 1.1 | |||
| Coefficient Of Variation | (2,509) | |||
| Standard Deviation | 1.59 | |||
| Variance | 2.54 | |||
| Information Ratio | (0.03) | |||
| Jensen Alpha | (0.06) | |||
| Total Risk Alpha | (0.02) | |||
| Treynor Ratio | (0.15) | |||
| Maximum Drawdown | 11.03 | |||
| Value At Risk | (2.16) | |||
| Potential Upside | 2.03 | |||
| Skewness | (1.75) | |||
| Kurtosis | 7.93 |
| Risk Adjusted Performance | (0.03) | |||
| Market Risk Adjusted Performance | (0.14) | |||
| Mean Deviation | 1.1 | |||
| Coefficient Of Variation | (2,509) | |||
| Standard Deviation | 1.59 | |||
| Variance | 2.54 | |||
| Information Ratio | (0.03) | |||
| Jensen Alpha | (0.06) | |||
| Total Risk Alpha | (0.02) | |||
| Treynor Ratio | (0.15) | |||
| Maximum Drawdown | 11.03 | |||
| Value At Risk | (2.16) | |||
| Potential Upside | 2.03 | |||
| Skewness | (1.75) | |||
| Kurtosis | 7.93 |
Consider Choice Hotels' intraday indicators
Choice Hotels intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Choice Hotels stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
Choice Hotels Corporate Filings
F4 | 5th of March 2025 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
8K | 20th of February 2025 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
F5 | 6th of February 2025 The annual filing required by the Securities and Exchange Commission (SEC) from company insiders or beneficial owners | ViewVerify |
| 14th of November 2024 Other Reports | ViewVerify |
Choice Stock media impact
Far too much social signal, news, headlines, and media speculation about Choice Hotels that are available to investors today. That information is available publicly through Choice media outlets and privately through word of mouth or via Choice internal channels. However, regardless of the origin, that massive amount of Choice data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Choice Hotels news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Choice Hotels relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Choice Hotels' headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Choice Hotels alpha.
Choice Hotels Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Choice Hotels can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Choice Hotels Intern Historical Investor Sentiment
Investor biases related to Choice Hotels' public news can be used to forecast risks associated with an investment in Choice. The trend in average sentiment can be used to explain how an investor holding Choice can time the market purely based on public headlines and social activities around Choice Hotels International. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Choice Hotels' market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Choice Hotels and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Choice Hotels news discussions. The higher the estimate score, the more favorable the investor's outlook on Choice Hotels.
Choice Hotels Corporate Directors
| Liza Landsman | Independent Director | Profile | |
| Barbara Alexander | Independent Director | Profile | |
| William Jews | Independent Director | Profile | |
| Monte Koch | Independent Director | Profile |
Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Choice Hotels International. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in rate. You can also try the Money Managers module to screen money managers from public funds and ETFs managed around the world.
Is Hotels, Resorts & Cruise Lines space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Choice Hotels. If investors know Choice will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Choice Hotels listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 1.734 | Dividend Share 1.15 | Earnings Share 6.21 | Revenue Per Share | Quarterly Revenue Growth 0.069 |
The market value of Choice Hotels Intern is measured differently than its book value, which is the value of Choice that is recorded on the company's balance sheet. Investors also form their own opinion of Choice Hotels' value that differs from its market value or its book value, called intrinsic value, which is Choice Hotels' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Choice Hotels' market value can be influenced by many factors that don't directly affect Choice Hotels' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Choice Hotels' value and its price, as these two are different measures arrived at by various means. Investors typically determine if Choice Hotels is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Choice Hotels' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.