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Choice Hotels International

DB:CZH
Snowflake Description

Good value average dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
CZH
DB
$3B
Market Cap
  1. Home
  2. DE
  3. Consumer Services
Company description

Choice Hotels International, Inc., together with its subsidiaries, operates as a hotel franchisor worldwide. The last earnings update was 34 days ago. More info.


Add to Portfolio Compare Print
  • Choice Hotels International has significant price volatility in the past 3 months.
CZH Share Price and Events
7 Day Returns
-12.9%
DB:CZH
-6.8%
DE Hospitality
-0.6%
DE Market
1 Year Returns
-30%
DB:CZH
-48.1%
DE Hospitality
-20.9%
DE Market
CZH Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Choice Hotels International (CZH) -12.9% -34% -44.2% -30% -14.2% -14.7%
DE Hospitality -6.8% -31.3% -57.6% -48.1% -63.2% -70.6%
DE Market -0.6% -18.6% -26.2% -20.9% -25.8% -31.8%
1 Year Return vs Industry and Market
  • CZH outperformed the Hospitality industry which returned -48.1% over the past year.
  • CZH underperformed the Market in Germany which returned -20.9% over the past year.
Price Volatility
CZH
Industry
5yr Volatility vs Market

Value

 Is Choice Hotels International undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Choice Hotels International to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Choice Hotels International.

DB:CZH Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 9 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 4.9%
Perpetual Growth Rate 10-Year DE Government Bond Rate -0.4%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:CZH
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate -0.4%
Equity Risk Premium S&P Global 5.4%
Hospitality Unlevered Beta Simply Wall St/ S&P Global 0.78
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.782 (1 + (1- 21%) (29.44%))
0.976
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.98
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= -0.39% + (0.976 * 5.44%)
4.92%

Discounted Cash Flow Calculation for DB:CZH using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Choice Hotels International is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

DB:CZH DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 4.92%)
2020 177.10 Analyst x4 168.80
2021 227.93 Analyst x4 207.06
2022 253.85 Est @ 11.37% 219.80
2023 273.76 Est @ 7.84% 225.93
2024 288.47 Est @ 5.37% 226.91
2025 298.99 Est @ 3.64% 224.15
2026 306.27 Est @ 2.43% 218.85
2027 311.13 Est @ 1.59% 211.90
2028 314.22 Est @ 0.99% 203.97
2029 316.04 Est @ 0.58% 195.53
Present value of next 10 years cash flows $2,102.00
DB:CZH DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $316.04 × (1 + -0.39%) ÷ (4.92% – -0.39%)
$5,930.34
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $5,930.34 ÷ (1 + 4.92%)10
$3,669.14
DB:CZH Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $2,102.00 + $3,669.14
$5,771.14
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $5,771.14 / 55.40
$104.18
DB:CZH Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:CZH represents 0.93259x of NYSE:CHH
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.93259x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (USD) x Listing Adjustment Factor
= $ 104.18 x 0.93259
€97.16
Value per share (EUR) From above. €97.16
Current discount Discount to share price of €50.50
= -1 x (€50.50 - €97.16) / €97.16
48%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Choice Hotels International is available for.
Intrinsic value
48%
Share price is €50.5 vs Future cash flow value of €97.16
Current Discount Checks
For Choice Hotels International to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Choice Hotels International's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Choice Hotels International's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Choice Hotels International's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Choice Hotels International's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:CZH PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in USD $4.00
NYSE:CHH Share Price ** NYSE (2020-04-03) in USD $54.15
Germany Hospitality Industry PE Ratio Median Figure of 9 Publicly-Listed Hospitality Companies 21.1x
Germany Market PE Ratio Median Figure of 401 Publicly-Listed Companies 16.57x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Choice Hotels International.

DB:CZH PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:CHH Share Price ÷ EPS (both in USD)

= 54.15 ÷ 4.00

13.53x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Choice Hotels International is good value based on earnings compared to the DE Hospitality industry average.
  • Choice Hotels International is good value based on earnings compared to the Germany market.
Price based on expected Growth
Does Choice Hotels International's expected growth come at a high price?
Raw Data
DB:CZH PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 13.53x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts
2.4%per year
Europe Hospitality Industry PEG Ratio Median Figure of 63 Publicly-Listed Hospitality Companies 0.96x
Germany Market PEG Ratio Median Figure of 256 Publicly-Listed Companies 1.17x

*Line of best fit is calculated by linear regression .

DB:CZH PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 13.53x ÷ 2.4%

5.71x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Choice Hotels International is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Choice Hotels International's assets?
Raw Data
DB:CZH PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in USD $-0.42
NYSE:CHH Share Price * NYSE (2020-04-03) in USD $54.15
Germany Hospitality Industry PB Ratio Median Figure of 12 Publicly-Listed Hospitality Companies 1.73x
Germany Market PB Ratio Median Figure of 572 Publicly-Listed Companies 1.44x
DB:CZH PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:CHH Share Price ÷ Book Value per Share (both in USD)

= 54.15 ÷ -0.42

-127.57x

* Primary Listing of Choice Hotels International.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Choice Hotels International has negative assets, we can't compare the value of its assets to the DE Hospitality industry average.
X
Value checks
We assess Choice Hotels International's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Hospitality industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Hospitality industry average (and greater than 0)? (1 check)
  5. Choice Hotels International has a total score of 4/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Choice Hotels International expected to perform in the next 1 to 3 years based on estimates from 9 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
2.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Choice Hotels International expected to grow at an attractive rate?
  • Choice Hotels International's earnings growth is expected to exceed the low risk savings rate of -0.4%.
Growth vs Market Checks
  • Choice Hotels International's earnings growth is positive but not above the Germany market average.
  • Choice Hotels International's revenues are expected to decrease over the next 1-3 years, this is below the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:CZH Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:CZH Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts 2.4%
DB:CZH Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 9 Analysts -1.8%
Germany Hospitality Industry Earnings Growth Rate Market Cap Weighted Average 28.9%
Germany Hospitality Industry Revenue Growth Rate Market Cap Weighted Average 4%
Germany Market Earnings Growth Rate Market Cap Weighted Average 14.1%
Germany Market Revenue Growth Rate Market Cap Weighted Average 3.9%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:CZH Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:CZH Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31
2022-12-31 884 2
2021-12-31 1,167 292 231 8
2020-12-31 1,084 273 199 8
2020-04-05
DB:CZH Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-12-31 1,115 271 222
2019-09-30 1,092 287 211
2019-06-30 1,072 277 215
2019-03-31 1,050 256 220
2018-12-31 1,041 243 215
2018-09-30 1,018 239 174
2018-06-30 996 257 151
2018-03-31 962 238 122
2017-12-31 941 257 121
2017-09-30 928 229 163
2017-06-30 926 188 153
2017-03-31 906 198 141

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Choice Hotels International's earnings are expected to grow by 2.4% yearly, however this is not considered high growth (20% yearly).
  • Choice Hotels International's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:CZH Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below

All data from Choice Hotels International Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:CZH Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 4.12 4.68 3.27 9.00
2020-12-31 3.54 4.30 2.21 9.00
2020-04-05
DB:CZH Past Financials Data
Date (Data in USD Millions) EPS *
2019-12-31 4.00
2019-09-30 3.81
2019-06-30 3.86
2019-03-31 3.94
2018-12-31 3.83
2018-09-30 3.09
2018-06-30 2.69
2018-03-31 2.17
2017-12-31 2.16
2017-09-30 2.91
2017-06-30 2.74
2017-03-31 2.53

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Choice Hotels International is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).
X
Future performance checks
We assess Choice Hotels International's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Germany market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Germany market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Choice Hotels International has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Choice Hotels International performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Choice Hotels International's growth in the last year to its industry (Hospitality).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Choice Hotels International's year on year earnings growth rate has been positive over the past 5 years.
  • Choice Hotels International's 1-year earnings growth is less than its 5-year average (3% vs 13.9%)
  • Choice Hotels International's earnings growth has exceeded the DE Hospitality industry average in the past year (3% vs -36.8%).
Earnings and Revenue History
Choice Hotels International's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Choice Hotels International Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:CZH Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 1,114.82 221.53 167.33
2019-09-30 1,091.72 210.91 159.83
2019-06-30 1,072.47 214.64 159.71
2019-03-31 1,050.23 220.08 163.20
2018-12-31 1,041.30 215.11 160.35
2018-09-30 1,017.81 174.08 162.79
2018-06-30 996.25 151.36 160.37
2018-03-31 961.82 122.32 153.94
2017-12-31 941.30 121.48 155.02
2017-09-30 928.01 162.80 148.77
2017-06-30 925.66 153.24 145.16
2017-03-31 906.39 141.47 142.46
2016-12-31 807.91 105.97 148.36
2016-09-30 927.40 135.81 146.03
2016-06-30 901.35 129.72 144.03
2016-03-31 891.75 126.73 135.81
2015-12-31 859.88 127.14 134.25
2015-09-30 834.33 123.23 130.17
2015-06-30 807.97 121.17 130.26
2015-03-31 773.48 120.56 128.55
2014-12-31 757.97 120.40 121.42
2014-09-30 741.40 118.45 116.27
2014-06-30 742.95 117.57 112.44
2014-03-31 736.22 113.92 110.76
2013-12-31 724.65 112.22 111.71
2013-09-30 720.84 109.50 189.57
2013-06-30 709.39 113.49 186.23

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if Choice Hotels International has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) due to its liabilities exceeding its assets.
  • Choice Hotels International used its assets more efficiently than the DE Hospitality industry average last year based on Return on Assets.
  • Choice Hotels International's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Choice Hotels International's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Hospitality industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Choice Hotels International has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Choice Hotels International's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Choice Hotels International's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Choice Hotels International's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Choice Hotels International's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Choice Hotels International's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Choice Hotels International has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Choice Hotels International Company Filings, last reported 3 months ago.

DB:CZH Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 -23.51 851.61 33.77
2019-09-30 -56.74 876.35 31.57
2019-06-30 -122.66 784.79 34.41
2019-03-31 -185.48 805.82 31.81
2018-12-31 -183.77 754.61 26.64
2018-09-30 -168.08 782.53 30.92
2018-06-30 -203.95 796.22 37.15
2018-03-31 -259.92 797.01 36.83
2017-12-31 -258.60 726.52 235.34
2017-09-30 -200.38 801.30 238.85
2017-06-30 -252.62 864.27 197.96
2017-03-31 -292.49 863.61 187.47
2016-12-31 -311.35 840.60 202.46
2016-09-30 -337.44 866.91 205.95
2016-06-30 -373.83 902.12 207.89
2016-03-31 -385.87 893.22 194.07
2015-12-31 -395.90 813.71 193.44
2015-09-30 -400.64 817.56 199.44
2015-06-30 -385.47 801.16 230.82
2015-03-31 -413.49 811.99 200.72
2014-12-31 -428.80 785.08 214.88
2014-09-30 -397.02 786.72 244.60
2014-06-30 -412.51 789.51 211.72
2014-03-31 -439.13 806.52 175.05
2013-12-31 -452.87 793.56 168.20
2013-09-30 -469.46 825.09 161.52
2013-06-30 -520.02 866.48 144.17
  • Choice Hotels International has negative shareholder equity (liabilities exceed assets), this is a more serious situation compared with a high debt level.
  • Irrelevant to check if Choice Hotels International's debt level has increased considering it has negative shareholder equity.
  • Debt is well covered by operating cash flow (31.8%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 9.1x coverage).
X
Financial health checks
We assess Choice Hotels International's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Choice Hotels International has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Choice Hotels International's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.66%
Current annual income from Choice Hotels International dividends. Estimated to be 1.61% next year.
If you bought €2,000 of Choice Hotels International shares you are expected to receive €33 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Choice Hotels International's pays a lower dividend yield than the bottom 25% of dividend payers in Germany (1.7%).
  • Choice Hotels International's dividend is below the markets top 25% of dividend payers in Germany (4.86%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:CZH Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below
Germany Hospitality Industry Average Dividend Yield Market Cap Weighted Average of 8 Stocks 11.3%
Germany Market Average Dividend Yield Market Cap Weighted Average of 316 Stocks 3.9%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.9%
Germany Bottom 25% Dividend Yield 25th Percentile 1.7%
Germany Top 25% Dividend Yield 75th Percentile 4.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:CZH Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31 0.95 2.00
2021-12-31 0.90 9.00
2020-12-31 0.82 9.00
2020-04-05
DB:CZH Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2020-02-28 0.900 1.323
2019-12-13 0.900 0.884
2019-09-13 0.860 0.945
2019-04-22 0.860 0.993
2019-02-25 0.860 1.085
2018-12-14 0.860 1.142
2018-09-14 0.860 1.117
2018-04-20 0.860 1.092
2018-02-26 0.860 1.059
2017-12-18 0.860 1.083
2017-09-18 0.860 1.220
2017-04-24 0.860 1.357
2017-02-28 0.860 1.377
2016-12-16 0.860 1.522
2016-09-20 0.820 1.696
2016-04-26 0.820 1.720
2016-03-01 0.820 1.568
2016-02-29 0.820 1.576
2016-02-18 0.820 1.596
2015-09-14 0.780 1.603
2015-05-01 0.780 1.450
2015-03-04 0.780 1.245
2014-12-17 0.780 1.323
2014-09-19 0.740 1.396
2014-05-09 0.740 1.535
2014-03-03 0.740 1.614
2013-12-16 0.740 1.525
2013-09-30 0.740 1.652
2013-04-26 0.740 1.811
2013-02-13 0.740 1.822
2012-12-05 0.740 2.136
2012-07-26 0.740 2.206
2012-04-30 0.740 1.954
2012-02-21 0.740 1.979
2011-09-16 0.740 2.123
2011-05-05 0.740 2.324
2011-02-22 0.740 1.913
2010-12-10 0.740 1.919
2010-09-17 0.740 1.985
2010-04-29 0.740 2.207
2010-02-16 0.740 2.106
2009-12-11 0.740 2.294
2009-09-10 0.740 2.364
2009-05-04 0.740 2.706

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Choice Hotels International's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (4.6x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (5.2x coverage).
X
Income/ dividend checks
We assess Choice Hotels International's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.9%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Choice Hotels International afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Choice Hotels International has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Choice Hotels International's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Pat Pacious
COMPENSATION $5,756,856
AGE 53
TENURE AS CEO 2.6 years
CEO Bio

Mr. Patrick S. Pacious, also known as Pat, has been the Chief Executive Officer of Choice Hotels International Inc. since September 12, 2017 and as its President since May 24, 2016. Mr. Pacious served as the Chief Operating Officer of Choice Hotels International Inc. from since January 1, 2014 to September 12, 2017 and previously served as its Executive Vice President until May 24, 2016. He served as an Executive Vice President of Global Strategy & Operations at Choice Hotels International Inc., since February 2011 until December 2013. Mr. Pacious served as the Senior Vice President of Corporate Strategy & Information Technology at Choice Hotels International Inc., since August 2009 until February 2011. He served as Senior Vice President of Corporate Development & Strategy of Choice Hotels International Inc., since December 2007 until August 2009. Mr. Pacious served as Senior Vice President of Silver Spring-based international hotel franchiser at Choice Hotels International Inc., since December 2007 and served as its Senior Director of Corporate and Business Strategy since September 14, 2005 until December 2007. He spent more than 10 years as a consultant with BearingPoint and Arthur Andersen, where he provided strategic advice to senior executives and boards of directors for a variety of global and domestic organizations. Mr. Pacious is a graduate of Duke University and holds an M.B.A. from the Kellogg Graduate School of Management, Northwestern University.

CEO Compensation
  • Pat's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.
  • Pat's remuneration is higher than average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the Choice Hotels International management team in years:

3.5
Average Tenure
52
Average Age
  • The tenure for the Choice Hotels International management team is about average.
Management Team

Pat Pacious

TITLE
President
COMPENSATION
$6M
AGE
53
TENURE
2.6 yrs

Dominic Dragisich

TITLE
Chief Financial Officer
COMPENSATION
$2M
AGE
36
TENURE
3.1 yrs

Simone Wu

TITLE
Senior VP of External Affairs
COMPENSATION
$1M
AGE
54
TENURE
8.2 yrs

Patrick Cimerola

TITLE
Chief Human Resources Officer
COMPENSATION
$1M
AGE
50
TENURE
18.3 yrs

David Pepper

TITLE
Chief Development Officer
COMPENSATION
$2M
AGE
52
TENURE
15.3 yrs

Scott Oaksmith

TITLE
Senior VP of Finance & Chief Accounting Officer
COMPENSATION
$717K
AGE
47
TENURE
3.9 yrs

Brian Kirkland

TITLE
Chief Technology Officer
TENURE
2.2 yrs

Chad Fletcher

TITLE
Vice President of Global Sales
TENURE
2.2 yrs

Robert McDowell

TITLE
Chief Commercial Officer
AGE
52
TENURE
8.9 yrs

Sarah Searls

TITLE
Chief Customer Officer
TENURE
0.4 yrs
Board of Directors Tenure

Average tenure and age of the Choice Hotels International board of directors in years:

8.2
Average Tenure
62
Average Age
  • The tenure for the Choice Hotels International board of directors is about average.
Board of Directors

Stewart Bainum

TITLE
Chairman of the Board
AGE
73
TENURE
22.5 yrs

Pat Pacious

TITLE
President
COMPENSATION
$6M
AGE
53
TENURE
2.6 yrs

Bill Jews

TITLE
Independent Director
COMPENSATION
$231K
AGE
67
TENURE
14.1 yrs

Ervin Shames

TITLE
Lead Independent Director
COMPENSATION
$265K
AGE
78

Barbara Alexander

TITLE
Independent Director
COMPENSATION
$235K
AGE
70
TENURE
8.2 yrs

Lani Hopkins

TITLE
Member of the Travel Advisory Board
TENURE
12.1 yrs

Dave Douglas

TITLE
Member of Regional Advisory Board

John Tague

TITLE
Independent Director
COMPENSATION
$209K
AGE
57
TENURE
8.3 yrs

Monte J. Koch

TITLE
Independent Director
COMPENSATION
$258K
AGE
55
TENURE
6.1 yrs

Liza Landsman

TITLE
Independent Director
COMPENSATION
$220K
AGE
49
TENURE
5.5 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
19. Aug 19 Sell Robert McDowell Individual 16. Aug 19 16. Aug 19 -625 €79.64 €-49,774
13. Jun 19 Sell William Jews Individual 13. Jun 19 13. Jun 19 -8,750 €74.60 €-652,725
17. May 19 Sell David Pepper Individual 15. May 19 15. May 19 -10,658 €75.06 €-799,976
X
Management checks
We assess Choice Hotels International's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Choice Hotels International has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

Description

Choice Hotels International, Inc., together with its subsidiaries, operates as a hotel franchisor worldwide. It operates through Hotel Franchising and Corporate & Other segments. The company franchises lodging properties under the brand names of Comfort Inn, Comfort Suites, Quality, Clarion, Clarion Pointe, Sleep Inn, Econo Lodge, Rodeway Inn, MainStay Suites, Suburban Extended Stay Hotel, WoodSpring Suites, Cambria Hotels, V8 Hotel Köln @Motorworld, Quality Hotel Ostrava, Hotel Aquarius Venice, and Ascend Hotel Collection. It also develops and markets cloud-based technology products to the hotel industry. As of February 12, 2020, the company had approximately 7,000 hotels with 575,000 rooms in approximately 40 countries and territories. Choice Hotels International, Inc. has a strategic agreement with AM Resorts, LLC to improve its loyalty program. The company was founded in 1939 and is based in Rockville, Maryland.

Details
Name: Choice Hotels International, Inc.
CZH
Exchange: DB
Founded: 1939
$2,780,443,669
55,396,555
Website: http://www.choicehotels.com
Address: Choice Hotels International, Inc.
1 Choice Hotels Circle,
Suite 400,
Rockville,
Maryland, 20850,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE CHH Common Stock New York Stock Exchange US USD 10. Oct 1997
DB CZH Common Stock Deutsche Boerse AG DE EUR 10. Oct 1997
Number of employees
Current staff
Staff numbers
1,807
Choice Hotels International employees.
Industry
Hotels, Resorts and Cruise Lines
Consumer Services
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/05 21:57
End of day share price update: 2020/04/03 00:00
Last estimates confirmation: 2020/03/31
Last earnings filing: 2020/03/02
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.