CHH Intrinsic Value – Choice Hotels International Proves Debt Management Capabilities
February 5, 2023
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CHH Intrinsic Value – Choice Hotels International ($NYSE:CHH) is a hospitality company that specializes in providing high-quality lodging services to travelers across the world. It has become one of the most trusted names in the industry, and its ability to effectively manage its debts has played a large role in its success. One reason why Choice Hotels International is able to effectively handle their debts is because they have a proactive approach to debt management. The company takes the necessary steps to reduce the amount of debt it accumulates, such as restructuring its existing debt and refinancing when possible.
Additionally, they make sure to pay off any debts before they become delinquent. This helps ensure that Choice Hotels International is able to remain financially sound in the long run. Another reason why Choice Hotels International is able to effectively handle their debts is because they have a strong financial position. The company has an impressive balance sheet and has managed to grow its revenue and profits over the years. This has enabled it to pay off its debts in a timely manner and stay ahead of any potential financial problems. Finally, Choice Hotels International is able to effectively handle their debts because they have a strong commitment to their customer service. The company goes above and beyond to make sure that their customers have a great experience when staying at their hotels. This helps ensure that customers are happy and willing to come back in the future, which helps the company generate more revenue and reduce its debt levels. The company’s proactive approach to debt reduction, strong financial position, and commitment to customer service have all played a role in helping it remain financially sound over the years.
Market Price
Choice Hotels International has been proving their capabilities in debt management as evidenced by the positive media exposure they have been receiving. On Monday, CHOICE HOTELS INTERNATIONAL stock opened at $123.6 and closed at $121.7, which is a 1.9% decrease from its previous closing price of $124.1. This minor drop in price could be attributed to market sentiment as investors are wary of any changes in the company’s debt management.
However, the company has been demonstrating their prowess in this regard. In the past, they have successfully refinanced their debt through various strategies such as extending the maturity of the debt, issuing new debt and reducing the interest rate. These strategies have enabled them to maintain a healthy balance sheet and provide better returns to shareholders.
In addition, Choice Hotels International has been focusing on improving their cash flow. They have successfully implemented various cost-cutting measures and have reduced their capital expenditures. This has allowed them to improve their liquidity and generate more revenue. They have also taken steps to increase their efficiency and reduce their reliance on debt financing. All in all, Choice Hotels International has been showing their capabilities in debt management and has been able to maintain a stable financial position despite the volatility of the market. This is a testament to the company’s expertise in this area and their commitment to providing a secure investment for their shareholders. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for CHH. More…
| Total Revenues | Net Income | Net Margin |
| 1.32k | 340.51 | 24.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for CHH. More…
| Operations | Investing | Financing |
| 403.65 | -510.02 | -255.1 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for CHH. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 2.19k | 1.9k | 7.72 |
Key Ratios Snapshot
Some of the financial key ratios for CHH are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 6.7% | 15.3% | 37.3% |
| FCF Margin | ROE | ROA |
| 23.1% | 74.2% | 14.1% |
Analysis – CHH Intrinsic Value
GoodWhale has conducted an analysis of CHOICE HOTELS INTERNATIONAL’s fundamentals and determined that the fair value of its share is around $152.8. This assessment is based on our proprietary Valuation Line, which utilizes a variety of metrics to determine the fair market value of a company’s stock. Currently, CHOICE HOTELS INTERNATIONAL is trading at $121.7, representing a 20.4% discount to the assessed fair value. This implies that the stock is currently undervalued and may present a good buying opportunity for investors. GoodWhale’s Valuation Line analysis also provides additional insights into the company, such as an assessment of its growth outlook, competitive position, and other factors. Investors should consider these factors when making an informed decision about CHOICE HOTELS INTERNATIONAL’s stock. All in all, GoodWhale’s analysis suggests that CHOICE HOTELS INTERNATIONAL stock is currently undervalued and may present a good buying opportunity. More…
Peers
Choice Hotels International, Inc. is one of the world’s largest hotel companies. With over 6,300 hotels across more than 35 countries and territories, Choice Hotels International offers a wide variety of lodging options to suit any need. Wyndham Hotels & Resorts, Hilton Worldwide Holdings, and Marriott International are all major competitors in the hotel industry.
– Wyndham Hotels & Resorts Inc ($NYSE:WH)
Wyndham Hotels & Resorts Inc is one of the largest hotel companies in the world, with over 7,500 hotels across more than 80 countries. The company offers a wide range of hotel brands, from economy to luxury, and its portfolio includes some of the most well-known hotel brands in the world, such as Wyndham, Ramada, Days Inn, and Super 8. Wyndham Hotels & Resorts is headquartered in Parsippany, New Jersey.
The company’s market cap is 6.2B as of 2022 and its ROE is 30.65%.
– Hilton Worldwide Holdings Inc ($NYSE:HLT)
Hilton Worldwide Holdings Inc. is a hospitality company that owns, leases, manages, develops, and franchises hotels and resorts. The company operates in three segments: Owned and Leased Hotels, Management and Franchise, and Timeshare. As of December 31, 2020, it owned, leased, or managed 2,084 properties with 883,944 rooms. Hilton Worldwide Holdings Inc. was founded in 1919 and is headquartered in McLean, Virginia.
– Marriott International Inc ($NASDAQ:MAR)
Marriott International is one of the world’s largest hotel companies, with more than 6,000 properties in over 120 countries and territories. Marriott operates and franchises hotels and timeshare properties under 30 brands, including Marriott, Ritz-Carlton, Sheraton, and Westin. The company also has a vacation ownership division, Marriott Vacations Worldwide. Marriott was founded in 1927 by J. Willard Marriott and Frank J. Taylor.
Summary
Choice Hotels International is a leading hotel chain offering quality accommodations and hospitality services around the world. The company has proven its debt management capabilities, which has resulted in improved financial performance and strong balance sheet. Investors can benefit from Choice Hotels’ strong cash flow and low debt, which should help it continue to generate returns over time. In addition, the company has benefited from increasing media exposure, which has been mostly positive.
