Recent News
On May 20, 2026 the company announced Patrick Pacious will step down as President and CEO and Dominic Dragisich will serve as Interim CEO while the Board conducts a search. On May 6, 2026 Choice held its 70th annual convention highlighting franchise development and international pipeline expansion. On April 20 and May 7, 2026 the company announced new enterprise AI initiatives and technology integrations intended to boost owner revenue and operating efficiency. April 13, 2026 brought a Sleep Inn brand redesign and new openings; early June releases covered a new CTO appointment and a Sleep Inn “Local Favorites” breakfast program.
Technical Analysis
ADX sits at 14.2, indicating no established trend; recent directional indicator signals, however, point toward an early bullish rotation as DI+ registers a dip & reversal (bullish) and DI- records a peak & reversal (bullish). Together these suggest a shift in directional bias without an entrenched trend, so any sustained move requires follow-through volume or momentum confirmation.
MACD reads -0.33 with a dip & reversal in momentum; the MACD line remains below the signal (-0.03), so momentum appears to be recovering but lacks a bullish crossover. A confirmed MACD crossover above the signal line would materially strengthen the near-term upside case.
MRO stands at -27.75 (dip & reversal), indicating price sits below WMDST’s target and therefore implies potential upward pressure; magnitude suggests meaningful room for mean reversion if technical momentum supports it.
RSI at 51.66 with a dip & reversal places the market near neutral-to-positive territory, consistent with a market that can rally if catalysts align but remains vulnerable without trend confirmation.
Price sits around $109.56, near the 20-day average ($109.60) and above the 200-day average ($103.47). Short-term moving averages hover just above price (50-day $110.39), creating a tight band; Bollinger bands show moderate volatility (20-day stdev $3.64). Overall, short-term indicators point to range-bound action with a modest upside bias contingent on a MACD crossover and improved volume.
Fundamental Analysis
Revenue and profitability show contraction: revenue growth stands at -12.71% (QoQ -0.60%), and operating margin equals 17.70% but fell roughly 33.75% QoQ and 27.28% YoY. EBIT margin equals 15.94%, down about 38.62% QoQ and 34.52% YoY; that margin sits below the industry peer mean (24.15%) and below the industry peer median (22.75%).
EPS came in at $1.07 versus an estimate of $1.32, an EPS surprise of -18.94%, and forward EPS equals $1.916. Trailing P/E reads about 246.07 while forward P/E equals 52.82, indicating expectations fall with forward estimates but trailing valuation remains elevated compared with the industry peer mean and median; the P/E sits above the industry peer mean (93.50) and median (108.36) but below the industry peer high (285.28).
Balance sheet and cash-flow dynamics show leverage and working-capital pressure: total debt equals $2,109,620,000 versus total equity $137,427,000 (debt-to-equity ~15.35x, or ~1,535%), and debt-to-assets at 71.64%. Operating cash flow registered -$23,174,000 and free cash flow equaled -$50,058,000 with a free cash flow yield of -1.01%. Interest coverage sits at 2.26x, reflecting constrained buffer against rising interest costs.
Returns remain mixed: return on equity stands at 14.77% while return on assets measures 0.69%, and gross margin at 45.55% remains healthy. Earnings growth shows a negative near-term reading (-72.50%) while reported year-over-year earnings growth metrics show strong year-over-year comparisons in the provided fields; reconcilement requires attention to timing and non-recurring items disclosed in the company filings.
Valuation context: market cap equals $4,954,088,754 and enterprise value approximates $7,019,836,754 with an enterprise multiple near 92.11. Given stretched price multiples, negative free cash flow, and heavy leverage, WMDST values the stock as over-valued; upside depends on margin recovery, cash-flow improvement, and successful execution of the AI and franchise expansion initiatives announced in recent weeks.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2026-03-31 |
| REPORT DATE: | 2026-04-30 |
| NEXT REPORT DATE: | 2026-07-30 |
| CASH FLOW | Begin Period Cash Flow | $ 45.0 M |
| Operating Cash Flow | $ -23.17 M | |
| Capital Expenditures | $ -26.88 M | |
| Change In Working Capital | $ -56.30 M | |
| Dividends Paid | $ -13.12 M | |
| Cash Flow Delta | $ -1.12 M | |
| End Period Cash Flow | $ 43.9 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 340.6 M | |
| Forward Revenue | $ 366.6 M | |
| COSTS | ||
| Cost Of Revenue | $ 185.4 M | |
| Depreciation | $ 21.9 M | |
| Depreciation and Amortization | $ 21.9 M | |
| Research and Development | — | |
| Total Operating Expenses | $ 280.3 M | |
| PROFITABILITY | ||
| Gross Profit | $ 155.1 M | |
| EBITDA | $ 76.2 M | |
| EBIT | $ 54.3 M | |
| Operating Income | $ 60.3 M | |
| Interest Income | $ 1.2 M | |
| Interest Expense | $ 24.0 M | |
| Net Interest Income | $ -22.75 M | |
| Income Before Tax | $ 30.3 M | |
| Tax Provision | $ 10.0 M | |
| Tax Rate | 33.0 % | |
| Net Income | $ 20.3 M | |
| Net Income From Continuing Operations | $ 20.3 M | |
| EARNINGS | ||
| EPS Estimate | $ 1.32 | |
| EPS Actual | $ 1.07 | |
| EPS Difference | $ -0.25 | |
| EPS Surprise | -18.939 % | |
| Forward EPS | $ 1.92 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 2.9 B | |
| Intangible Assets | $ 1.4 B | |
| Net Tangible Assets | $ -1.26 B | |
| Total Current Assets | $ 410.8 M | |
| Cash and Short-Term Investments | $ 43.9 M | |
| Cash | $ 43.9 M | |
| Net Receivables | $ 243.5 M | |
| Inventory | — | |
| Long-Term Investments | $ 121.8 M | |
| LIABILITIES | ||
| Accounts Payable | $ 146.2 M | |
| Short-Term Debt | — | |
| Total Current Liabilities | $ 434.0 M | |
| Net Debt | $ 2.0 B | |
| Total Debt | $ 2.1 B | |
| Total Liabilities | $ 2.8 B | |
| EQUITY | ||
| Total Equity | $ 137.4 M | |
| Retained Earnings | $ 2.3 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 3.00 | |
| Shares Outstanding | 45.617 M | |
| Revenue Per-Share | $ 7.44 | |
| VALUATION | Market Capitalization | $ 5.0 B |
| Enterprise Value | $ 7.0 B | |
| Enterprise Multiple | 92.114 | |
| Enterprise Multiple QoQ | 69.253 % | |
| Enterprise Multiple YoY | 13.548 % | |
| Enterprise Multiple IPRWA | high: 205.993 CHH: 92.114 mean: 83.548 median: 78.132 low: -109.403 |
|
| EV/R | 20.612 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 21.427 | |
| Asset To Liability | 1.049 | |
| Debt To Capital | 0.939 | |
| Debt To Assets | 0.716 | |
| Debt To Assets QoQ | 3.375 % | |
| Debt To Assets YoY | -7.064 % | |
| Debt To Assets IPRWA | high: 1.622 CHH: 0.716 mean: 0.664 median: 0.625 low: 0.003 |
|
| Debt To Equity | 15.351 | |
| Debt To Equity QoQ | 37.557 % | |
| Debt To Equity YoY | -149.391 % | |
| Debt To Equity IPRWA | CHH: 15.351 high: 12.878 mean: 0.38 median: 0.371 low: -7.932 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 36.049 | |
| Price To Book QoQ | 37.994 % | |
| Price To Book YoY | -137.561 % | |
| Price To Book IPRWA | CHH: 36.049 high: 18.76 median: 10.414 mean: 6.202 low: -12.586 |
|
| Price To Earnings (P/E) | 246.067 | |
| Price To Earnings QoQ | 227.518 % | |
| Price To Earnings YoY | 150.352 % | |
| Price To Earnings IPRWA | high: 285.278 CHH: 246.067 median: 108.358 mean: 93.497 low: -170.635 |
|
| PE/G Ratio | -3.394 | |
| Price To Sales (P/S) | 14.546 | |
| Price To Sales QoQ | 19.874 % | |
| Price To Sales YoY | -21.092 % | |
| Price To Sales IPRWA | high: 33.432 median: 25.858 mean: 22.416 CHH: 14.546 low: 0.178 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 52.822 | |
| Forward PE/G | -0.729 | |
| Forward P/S | 13.386 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 3.653 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.116 | |
| Asset Turnover Ratio QoQ | -13.26 % | |
| Asset Turnover Ratio YoY | -10.857 % | |
| Asset Turnover Ratio IPRWA | high: 0.683 mean: 0.178 CHH: 0.116 median: 0.109 low: 0.078 |
|
| Receivables Turnover | 1.51 | |
| Receivables Turnover Ratio QoQ | -14.064 % | |
| Receivables Turnover Ratio YoY | -15.846 % | |
| Receivables Turnover Ratio IPRWA | high: 51.203 mean: 7.593 median: 2.661 CHH: 1.51 low: 1.107 |
|
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | 60.418 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | -14.864 | |
| Cash Conversion Cycle Days QoQ | -8.063 % | |
| Cash Conversion Cycle Days YoY | 120.346 % | |
| Cash Conversion Cycle Days IPRWA | high: 38.929 median: -2.211 mean: -5.552 CHH: -14.864 low: -124.383 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | -14.671 | |
| CapEx To Revenue | -0.079 | |
| CapEx To Depreciation | -1.226 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 2.1 B | |
| Net Invested Capital | $ 2.1 B | |
| Invested Capital | $ 2.1 B | |
| Net Tangible Assets | $ -1.26 B | |
| Net Working Capital | $ -23.21 M | |
| LIQUIDITY | ||
| Cash Ratio | 0.101 | |
| Current Ratio | 0.947 | |
| Current Ratio QoQ | 8.941 % | |
| Current Ratio YoY | 12.941 % | |
| Current Ratio IPRWA | high: 2.493 mean: 0.966 CHH: 0.947 median: 0.933 low: 0.26 |
|
| Quick Ratio | — | |
| Quick Ratio QoQ | — | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 27.682 | |
| Cost Of Debt | 0.777 % | |
| Interest Coverage Ratio | 2.265 | |
| Interest Coverage Ratio QoQ | -47.046 % | |
| Interest Coverage Ratio YoY | -40.606 % | |
| Interest Coverage Ratio IPRWA | high: 21.267 mean: 8.829 median: 7.355 CHH: 2.265 low: -13.758 |
|
| Operating Cash Flow Ratio | -0.009 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 75.282 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | 1.548 | |
| Dividend Payout Ratio | 0.646 | |
| Dividend Rate | $ 0.29 | |
| Dividend Yield | 0.003 | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 0.904 % | |
| Revenue Growth | -12.707 % | |
| Revenue Growth QoQ | -0.602 % | |
| Revenue Growth YoY | -12.972 % | |
| Revenue Growth IPRWA | high: 34.416 % mean: -4.62 % median: -7.006 % CHH: -12.707 % low: -26.819 % |
|
| Earnings Growth | -72.5 % | |
| Earnings Growth QoQ | 108.561 % | |
| Earnings Growth YoY | 435.134 % | |
| Earnings Growth IPRWA | high: 233.333 % median: -9.295 % mean: -9.678 % CHH: -72.5 % low: -200.0 % |
|
| MARGINS | ||
| Gross Margin | 45.551 % | |
| Gross Margin QoQ | -14.079 % | |
| Gross Margin YoY | -9.743 % | |
| Gross Margin IPRWA | high: 78.305 % CHH: 45.551 % mean: 41.803 % median: 39.043 % low: -0.222 % |
|
| EBIT Margin | 15.935 % | |
| EBIT Margin QoQ | -38.617 % | |
| EBIT Margin YoY | -34.521 % | |
| EBIT Margin IPRWA | high: 45.143 % mean: 24.154 % median: 22.748 % CHH: 15.935 % low: -24.703 % |
|
| Return On Sales (ROS) | 17.697 % | |
| Return On Sales QoQ | -33.749 % | |
| Return On Sales YoY | -27.281 % | |
| Return On Sales IPRWA | high: 44.253 % mean: 24.148 % median: 23.583 % CHH: 17.697 % low: -45.058 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ -50.06 M | |
| Free Cash Flow Yield | -1.01 % | |
| Free Cash Flow Yield QoQ | -191.735 % | |
| Free Cash Flow Yield YoY | 142.788 % | |
| Free Cash Flow Yield IPRWA | high: 5.154 % mean: 0.972 % median: 0.794 % CHH: -1.01 % low: -7.886 % |
|
| Free Cash Growth | -196.027 % | |
| Free Cash Growth QoQ | -779.847 % | |
| Free Cash Growth YoY | 33.089 % | |
| Free Cash Growth IPRWA | high: 371.18 % mean: 30.452 % median: 5.617 % CHH: -196.027 % low: -450.0 % |
|
| Free Cash To Net Income | -2.465 | |
| Cash Flow Margin | -1.134 % | |
| Cash Flow To Earnings | -0.19 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.03 | |
| Return On Assets (ROA) | 0.693 % | |
| Return On Assets QoQ | -68.298 % | |
| Return On Assets YoY | -60.264 % | |
| Return On Assets IPRWA | high: 7.852 % mean: 2.479 % median: 2.339 % CHH: 0.693 % low: -1.371 % |
|
| Return On Capital Employed (ROCE) | 2.162 % | |
| Return On Equity (ROE) | 0.148 | |
| Return On Equity QoQ | -57.956 % | |
| Return On Equity YoY | -121.21 % | |
| Return On Equity IPRWA | high: 0.315 CHH: 0.148 median: 0.021 mean: 0.011 low: -0.198 |
|
| DuPont ROE | 12.744 % | |
| Return On Invested Capital (ROIC) | 1.698 % | |
| Return On Invested Capital QoQ | -57.358 % | |
| Return On Invested Capital YoY | -49.055 % | |
| Return On Invested Capital IPRWA | high: 18.09 % mean: 6.299 % median: 5.912 % CHH: 1.698 % low: -2.438 % |
|