CHH Intrinsic Value Calculation – Analysts Give Choice Hotels International, a Consensus Rating of “Reduce”
July 4, 2023
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It offers a variety of hotel brands, including Comfort Inn, Quality Inn, Sleep Inn, Clarion, Econo Lodge, Rodeway Inn, and MainStay Suites. As one of the largest lodging franchisors, Choice Hotels International ($NYSE:CHH) is committed to providing customers with a comfortable and high-quality experience. Unfortunately, analysts covering Choice Hotels International, Inc. have given the company a consensus rating of “Reduce” for its shares. This rating indicates that the analysts have a bearish outlook on Choice Hotels International’s stock in the near-term.
They feel that it would be better to sell or reduce holdings in the stock as opposed to buying or holding it. Although the analysts’ sentiment may be bearish, investors should do their own research and make their own decisions before investing or trading in Choice Hotels International’s stock.
Price History
On Monday, Choice Hotels International, Inc. (CHH), saw its stock open at $116.7 and close at $117.2, a decrease of 0.3% from the previous day’s closing price of $117.5. Analysts have given CHH a consensus rating of “Reduce,” citing the lackluster performance in the last quarter as well as the continued pressure from the macroeconomic environment. As such, analysts are recommending investors stay away from CHH until further clarity is available on the company’s future prospects. 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 |
| 1.48k | 315.75 | 20.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for CHH. More…
| Operations | Investing | Financing |
| 315.17 | -449.43 | -360.92 |
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 |
| 2.11k | 2.06k | 0.92 |
Key Ratios Snapshot
Some of the financial key ratios for CHH are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 9.8% | 10.7% | 31.3% |
| FCF Margin | ROE | ROA |
| 15.5% | 287.0% | 13.7% |
Analysis – CHH Intrinsic Value Calculation
At GoodWhale, we recently performed an analysis of CHOICE HOTELS INTERNATIONAL’s wellbeing. Through our proprietary Valuation Line, we determined the fair value of a CHOICE HOTELS INTERNATIONAL share to be around $176.1. However, currently, CHOICE HOTELS INTERNATIONAL is trading at $117.2 – meaning it is undervalued by 33.4%. This provides an excellent opportunity for investors as they can purchase a stock at a value significantly lower than its potential worth. More…
Peers
Choice Hotels International, Inc. is one of the world’s largest hotel companies. With over 6,300 hotels across more than 35 countries and territories, Choice Hotels International offers a wide variety of lodging options to suit any need. Wyndham Hotels & Resorts, Hilton Worldwide Holdings, and Marriott International are all major competitors in the hotel industry.
– Wyndham Hotels & Resorts Inc ($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
Investing analysis on Choice Hotels International, Inc. shows a consensus rating of “Reduce” by the eight analysts surveyed. This outlook reflects a pessimistic market sentiment on the company’s stock, suggesting that investors should approach this stock with caution. The consensus is that there is potential downside risk to the stock, and that investors should consider other opportunities before investing in Choice Hotels International, Inc. Despite this, investors should not discount the potential for a long-term payoff if the company can turn itself around. Conducting additional research and remaining up-to-date on the latest news may help investors make better decisions when it comes to investing in Choice Hotels International, Inc.
