Choice Hotels International Stock Operating Margin

CHH Stock

USD 149.30 2.76 1.88%

Choice Hotels International fundamentals help investors to digest information that contributes to Choice Hotels' financial success or failures. It also enables traders to predict the movement of Choice Stock. The fundamental analysis module provides a way to measure Choice Hotels' intrinsic value by examining its available economic and financial indicators, including the cash flow records, the balance sheet account changes, the income statement patterns, and various microeconomic indicators and financial ratios related to Choice Hotels stock.

		Last Reported	Projected for Next Year
	Operating Profit Margin	0.24	0.32

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Choice Hotels International Company Operating Margin Analysis

Choice Hotels' Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.

Operating Margin

Operating Income

Revenue

100

More About Operating Margin | All Equity Analysis

Current Choice Hotels Operating Margin

0.71 %

Most of Choice Hotels' fundamental indicators, such as Operating Margin, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Choice Hotels International is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.

Choice Operating Margin Driver Correlations

Understanding the fundamental principles of building solid financial models for Choice Hotels is extremely important. It helps to project a fair market value of Choice Stock properly, considering its historical fundamentals such as Operating Margin. Since Choice Hotels' main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of Choice Hotels' historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of Choice Hotels' interrelated accounts and indicators.

	Total Assets	Total Stockholder Equity	Net Debt	Retained Earnings	Accounts Payable	Net Receivables	Good Will	Total Liab	Total Current Assets	Short Term Debt	Intangible Assets	Common Stock	Long Term Debt	Treasury Stock	Property Plant Equipment	Current Deferred Revenue	Net Tangible Assets	Short Term Investments	Long Term Debt Total	Capital Surpluse	Deferred Long Term Liab	Long Term Investments	Short Long Term Debt	Cash And Equivalents	Net Invested Capital	Net Working Capital	Capital Stock
Total Assets		0.66	0.86	0.95	0.64	0.94	0.77	0.95	0.34	0.77	0.94	0.61	0.52	-0.57	0.98	0.21	-0.53	0.9	0.68	0.86	0.74	0.42	0.8	-0.25	0.92	-0.73	-0.67
Total Stockholder Equity	0.66		0.28	0.62	0.03	0.54	0.7	0.39	0.23	0.42	0.63	0.38	-0.03	-0.08	0.7	-0.08	0.12	0.59	0.06	0.57	0.77	0.15	0.44	0.04	0.64	-0.3	-0.26
Net Debt	0.86	0.28		0.81	0.81	0.81	0.58	0.94	-0.01	0.79	0.9	0.42	0.54	-0.46	0.82	0.18	-0.8	0.78	0.75	0.68	0.52	0.39	0.79	-0.55	0.8	-0.89	-0.8
Retained Earnings	0.95	0.62	0.81		0.6	0.93	0.68	0.9	0.32	0.75	0.91	0.57	0.46	-0.67	0.92	0.29	-0.5	0.88	0.63	0.82	0.58	0.41	0.76	-0.3	0.88	-0.74	-0.67
Accounts Payable	0.64	0.03	0.81	0.6		0.61	0.36	0.78	0.12	0.62	0.69	0.07	0.56	-0.42	0.62	0.03	-0.83	0.6	0.7	0.48	0.4	0.1	0.62	-0.34	0.63	-0.65	-0.61
Net Receivables	0.94	0.54	0.81	0.93	0.61		0.75	0.93	0.38	0.59	0.87	0.71	0.64	-0.72	0.89	0.37	-0.6	0.8	0.74	0.89	0.57	0.53	0.62	-0.35	0.83	-0.65	-0.53
Good Will	0.77	0.7	0.58	0.68	0.36	0.75		0.64	0.21	0.37	0.77	0.67	0.54	-0.37	0.77	0.03	-0.45	0.65	0.61	0.9	0.8	0.36	0.41	-0.33	0.83	-0.47	-0.18
Total Liab	0.95	0.39	0.94	0.9	0.78	0.93	0.64		0.32	0.77	0.89	0.59	0.65	-0.67	0.9	0.29	-0.7	0.85	0.81	0.82	0.58	0.45	0.79	-0.33	0.86	-0.77	-0.71
Total Current Assets	0.34	0.23	-0.01	0.32	0.12	0.38	0.21	0.32		0.1	0.05	0.45	0.49	-0.59	0.33	0.34	0.11	0.32	0.39	0.46	0.29	0.08	0.15	0.67	0.31	0.26	0.17
Short Term Debt	0.77	0.42	0.79	0.75	0.62	0.59	0.37	0.77	0.1		0.77	0.25	0.11	-0.23	0.73	0.14	-0.35	0.78	0.4	0.49	0.55	0.3	0.96	-0.17	0.72	-0.86	-0.9
Intangible Assets	0.94	0.63	0.9	0.91	0.69	0.87	0.77	0.89	0.05	0.77		0.45	0.41	-0.41	0.92	0.08	-0.63	0.87	0.61	0.78	0.71	0.33	0.77	-0.47	0.9	-0.83	-0.72
Common Stock	0.61	0.38	0.42	0.57	0.07	0.71	0.67	0.59	0.45	0.25	0.45		0.62	-0.61	0.55	0.53	-0.24	0.5	0.64	0.82	0.43	0.69	0.29	-0.14	0.57	-0.3	-0.09
Long Term Debt	0.52	-0.03	0.54	0.46	0.56	0.64	0.54	0.65	0.49	0.11	0.41	0.62		-0.71	0.5	0.35	-0.68	0.4	0.95	0.72	0.34	0.27	0.2	-0.15	0.57	-0.18	0.01
Treasury Stock	-0.57	-0.08	-0.46	-0.67	-0.42	-0.72	-0.37	-0.67	-0.59	-0.23	-0.41	-0.61	-0.71		-0.55	-0.42	0.48	-0.48	-0.69	-0.66	-0.07	-0.41	-0.3	0.11	-0.48	0.25	0.19
Property Plant Equipment	0.98	0.7	0.82	0.92	0.62	0.89	0.77	0.9	0.33	0.73	0.92	0.55	0.5	-0.55		0.09	-0.48	0.87	0.65	0.84	0.77	0.33	0.77	-0.23	0.93	-0.68	-0.62
Current Deferred Revenue	0.21	-0.08	0.18	0.29	0.03	0.37	0.03	0.29	0.34	0.14	0.08	0.53	0.35	-0.42	0.09		-0.08	0.12	0.38	0.35	-0.08	0.54	0.06	-0.01	0.14	-0.17	-0.08
Net Tangible Assets	-0.53	0.12	-0.8	-0.5	-0.83	-0.6	-0.45	-0.7	0.11	-0.35	-0.63	-0.24	-0.68	0.48	-0.48	-0.08		-0.46	-0.76	-0.51	-0.21	-0.22	-0.36	0.66	-0.51	0.61	0.43
Short Term Investments	0.9	0.59	0.78	0.88	0.6	0.8	0.65	0.85	0.32	0.78	0.87	0.5	0.4	-0.48	0.87	0.12	-0.46		0.58	0.74	0.66	0.18	0.75	-0.16	0.84	-0.69	-0.65
Long Term Debt Total	0.68	0.06	0.75	0.63	0.7	0.74	0.61	0.81	0.39	0.4	0.61	0.64	0.95	-0.69	0.65	0.38	-0.76	0.58		0.81	0.47	0.37	0.47	-0.27	0.74	-0.47	-0.28
Capital Surpluse	0.86	0.57	0.68	0.82	0.48	0.89	0.9	0.82	0.46	0.49	0.78	0.82	0.72	-0.66	0.84	0.35	-0.51	0.74	0.81		0.72	0.52	0.53	-0.24	0.89	-0.53	-0.28
Deferred Long Term Liab	0.74	0.77	0.52	0.58	0.4	0.57	0.8	0.58	0.29	0.55	0.71	0.43	0.34	-0.07	0.77	-0.08	-0.21	0.66	0.47	0.72		0.17	0.58	0.02	0.83	-0.42	-0.3
Long Term Investments	0.42	0.15	0.39	0.41	0.1	0.53	0.36	0.45	0.08	0.3	0.33	0.69	0.27	-0.41	0.33	0.54	-0.22	0.18	0.37	0.52	0.17		0.35	-0.36	0.33	-0.45	-0.31
Short Long Term Debt	0.8	0.44	0.79	0.76	0.62	0.62	0.41	0.79	0.15	0.96	0.77	0.29	0.2	-0.3	0.77	0.06	-0.36	0.75	0.47	0.53	0.58	0.35		-0.13	0.78	-0.79	-0.87
Cash And Equivalents	-0.25	0.04	-0.55	-0.3	-0.34	-0.35	-0.33	-0.33	0.67	-0.17	-0.47	-0.14	-0.15	0.11	-0.23	-0.01	0.66	-0.16	-0.27	-0.24	0.02	-0.36	-0.13		-0.22	0.65	0.39
Net Invested Capital	0.92	0.64	0.8	0.88	0.63	0.83	0.83	0.86	0.31	0.72	0.9	0.57	0.57	-0.48	0.93	0.14	-0.51	0.84	0.74	0.89	0.83	0.33	0.78	-0.22		-0.68	-0.53
Net Working Capital	-0.73	-0.3	-0.89	-0.74	-0.65	-0.65	-0.47	-0.77	0.26	-0.86	-0.83	-0.3	-0.18	0.25	-0.68	-0.17	0.61	-0.69	-0.47	-0.53	-0.42	-0.45	-0.79	0.65	-0.68		0.88
Capital Stock	-0.67	-0.26	-0.8	-0.67	-0.61	-0.53	-0.18	-0.71	0.17	-0.9	-0.72	-0.09	0.01	0.19	-0.62	-0.08	0.43	-0.65	-0.28	-0.28	-0.3	-0.31	-0.87	0.39	-0.53	0.88

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Choice Operating Margin Historical Pattern

Today, most investors in Choice Hotels Stock are looking for potential investment opportunities by analyzing not only static indicators but also various Choice Hotels' growth ratios. Consistent increases or drops in fundamental ratios usually indicate a possible pattern that can be successfully translated into profits. However, when comparing two companies, knowing each company's operating margin growth rates may not be enough to decide which company is a better investment. That's why investors frequently use a static breakdown of Choice Hotels operating margin as a starting point in their analysis.

Choice Hotels Operating Margin

Timeline

A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.

Competition

Predict Choice Hotels

Operating Profit Margin Over Time

Choice Pretax Profit Margin

Pretax Profit Margin

0.31

As of now, Choice Hotels' Pretax Profit Margin is increasing as compared to previous years.

Based on the recorded statements, Choice Hotels International has an Operating Margin of 0.7106%. This is 88.9% lower than that of the Hotels, Restaurants & Leisure sector and 97.23% lower than that of the Consumer Discretionary industry. The operating margin for all United States stocks is 112.9% lower than that of the firm.

Choice Operating Margin Peer Comparison

Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Choice Hotels' direct or indirect competition against its Operating Margin to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Choice Hotels could also be used in its relative valuation, which is a method of valuing Choice Hotels by comparing valuation metrics of similar companies.

Choice Hotels is currently under evaluation in operating margin category among its peers.

Choice Hotels ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Choice Hotels' sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Choice Hotels' managers, analysts, and investors.

Environmental

Governance

Social

Choice Fundamentals

	Return On Equity	0.88
	Return On Asset	0.11
	Profit Margin	0.32 %
	Operating Margin	0.71 %
	Current Valuation	8.7 B
	Shares Outstanding	46.91 M
	Shares Owned By Insiders	41.38 %
	Shares Owned By Institutions	68.90 %
	Number Of Shares Shorted	5.5 M
	Price To Earning	89.21 X
	Price To Book	898.95 X
	Price To Sales	8.82 X
	Revenue	1.54 B
	Gross Profit	700.05 M
	EBITDA	440.39 M
	Net Income	258.51 M
	Cash And Equivalents	41.57 M
	Cash Per Share	10.96 X
	Total Debt	1.68 B
	Debt To Equity	2.62 %
	Current Ratio	1.69 X
	Book Value Per Share	(2.06) X
	Cash Flow From Operations	296.55 M
	Short Ratio	18.57 X
	Earnings Per Share	5.25 X
	Price To Earnings To Growth	1.59 X
	Target Price	130.79
	Number Of Employees	1.84 K
	Beta	1.24
	Market Capitalization	6.87 B
	Total Asset	2.39 B
	Retained Earnings	1.76 B
	Working Capital	(646.16 M)
	Current Asset	310.95 M
	Current Liabilities	208.02 M
	Annual Yield	0.01 %
	Five Year Return	1.10 %
	Net Asset	2.39 B
	Last Dividend Paid	1.15

About Choice Hotels Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Choice Hotels International's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Choice Hotels using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Choice Hotels International based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.

Please read more on our fundamental analysis page.

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When determining whether Choice Hotels Intern offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Choice Hotels' financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Choice Hotels International Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Choice Hotels International Stock:

How To Invest In Choice

Details

Is Choice Stock a good investment?

Details

What is Choice Hotels' Net Worth?

Details

Largest Hotels, Resorts & Cruise Lines Companies

View

Largest Consumer Services Companies

View

Check out Choice Hotels Piotroski F Score and Choice Hotels Altman Z Score analysis.

You can also try the Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.

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

0.227

Dividend Share

1.15

Earnings Share

5.25

Revenue Per Share

16.114

Quarterly Revenue Growth

0.034

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.

Please note, there is a significant difference between Choice Hotels' value and its price as these two are different measures arrived at by different 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.

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Choice Hotels International Stock Operating Margin

Choice Hotels International Company Operating Margin Analysis

Operating Margin

Operating Income

Revenue

100

Current Choice Hotels Operating Margin

Choice Operating Margin Driver Correlations

Choice Operating Margin Historical Pattern

Choice Pretax Profit Margin

Pretax Profit Margin

0.31

Choice Operating Margin Peer Comparison

Choice Hotels ESG Sustainability

Choice Fundamentals

About Choice Hotels Fundamental Analysis

Currently Active Assets on Macroaxis

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