📊 AI Stock Rating — Summary

In the latest quarter ending September 30, 2025, CHH reported a revenue of $447.34 million, with a net income of $179.996 million, translating to an EPS of $3.89. The net margin stands at an impressive 40.22% and free cash flow amounted to $68.687 million. Compared to the previous year, CHH showcases solid growth metrics, with its financials indicating robust profitability. CHH maintains a streamlined balance sheet with total assets amounting to approximately $2.91 billion against liabilities of $2.76 billion, leading to a total equity of $149.774 million. However, the company has significant net debt totaling $1.98 billion, indicating a leverage-driven capital structure. Operating cash flow performance is strong, further underlined by direct repayments to debt totaling $18.732 million, indicating prudent financial management. Even with a slight issuance of shares and nominal stock repurchases, CHH maintains shareholder loyalty with regular quarterly dividends, totaling $0.2875 per share for the quarter. Analyst sentiment remains optimistic, reflected by target price ranges suggesting potential upside. Overall, the company's financial performance highlights a healthy growth trajectory with consistent profitability and efficient cash management, although the high leverage should be monitored.

AI Score Breakdown

Revenue Growth — Score: 7/10

The company experienced steady revenue growth, with an emphasis on operational efficiency, driving top-line stability. Key growth drivers include its core business expansion and market penetration.

Profitability — Score: 9/10

Net margin is robust at over 40%, with EPS growing substantially. The profitability metrics underline the company's efficient operational capabilities and strong market position.

Cash Flow Quality — Score: 8/10

With a solid free cash flow and strategic debt repayment, the company exhibits strong cash flow management. Regular dividends enhance the quality of cash distribution.

Leverage & Balance Sheet — Score: 6/10

While total assets exceed liabilities leading to modest equity, net debt remains high, suggesting a reliance on leverage. The balance sheet requires cautious observation.

Shareholder Returns — Score: 7/10

Steady dividend payments and minor price fluctuations underpin decent shareholder returns. While price appreciation is moderate, the dividend yield offers consistent returns to investors.

Analyst Sentiment & Valuation — Score: 8/10

Analyst targets between $101 and $110 suggest potential upside. Despite high leverage, valuation metrics appear reasonable given profitability, supporting a fair valuation outlook.

⚠ AI-generated — informational only, not financial advice.