The recent downturn has taken Choice Hotels International, Inc. shares close to a medium term support level around 109.6 USD. The timing for a long trade in the stock appears good.
Summary
● Overall, the company has poor fundamentals for a medium to long-term investment strategy.
● From a short-term investment perspective, the company presents a deteriorated fundamental configuration.
Strengths
● The company's EBITDA/Sales ratio is relatively high and results in high margins before depreciation, amortization and taxes.
● Margins returned by the company are among the highest on the stock exchange list. Its core activity clears big profits.
● The opinion of analysts covering the stock has improved over the past four months.
● Over the past twelve months, analysts' opinions have been strongly revised upwards.
Weaknesses
● With relatively low growth outlooks, the group is not among those with the highest revenue growth potential.
● The company is in a hindered financial situation with significant debt and rather low EBITDA levels.
● The company's enterprise value to sales, at 4.35 times its current sales, is high.
● The company appears highly valued given the size of its balance sheet.
● The company is not the most generous with respect to shareholders' compensation.
● For the last 12 months, analysts have been regularly downgrading their EPS expectations. Analysts predict worse results for the company against their predictions a year ago.
● For the last four months, EPS estimates made by Standard & Poor's analysts have been revised downwards.
● The company's earnings releases usually do not meet expectations.
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Choice Hotels International, Inc. is a hotel franchisor. The Companyâs segments include Hotel Franchising & Management and Corporate & Other. The Hotel Franchising & Management segment includes the Company's hotel franchising operations which consists of its 22 brands and brand extensions and the hotel management operations of 14 hotels (inclusive of four owned hotels). It has 7,527 hotels with 632,986 rooms open and operating, and 1,032 hotels with 105,062 rooms. The Companyâs brands include Comfort Inn, Comfort Suites, Quality, Clarion, Clarion Pointe, Ascend Hotel Collection, Sleep Inn, Econo Lodge, Rodeway Inn, MainStay Suites, Suburban Studios, WoodSpring Suites, Everhome Suites, and Cambria Hotels. It also includes Radisson Blu, Radisson RED, Radisson, Park Plaza, Country Inn & Suites by Radisson, Radisson Inn & Suites, Park Inn by Radisson, Radisson Individuals, and Radisson Collection brands, which are located across the United States, Canada, the Caribbean and Latin America.
CHOICE HOTELS INTERNATIONAL, INC. 
