GreenTree Hospitality Group
Market Cap
US$1.3b
Last Updated
2021/02/25 23:59 UTC
Data Sources
Company Financials +
Executive Summary
GreenTree Hospitality Group Ltd., through its subsidiaries, develops leased-and-operated, and franchised-and-managed hotels under the GreenTree brand in the People’s Republic of China. More Details
Rewards
Risk Analysis
Snowflake Analysis
Exceptional growth potential with excellent balance sheet.
Similar Companies
Share Price & News
How has GreenTree Hospitality Group's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: GHG is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: GHG's weekly volatility (4%) has been stable over the past year.
Market Performance
7 Day Return
-0.8%
GHG
1.7%
US Hospitality
-3.2%
US Market
1 Year Return
13.3%
GHG
25.3%
US Hospitality
38.9%
US Market
Return vs Industry: GHG underperformed the US Hospitality industry which returned 24.8% over the past year.
Return vs Market: GHG underperformed the US Market which returned 37.1% over the past year.
Shareholder returns
| GHG | Industry | Market | |
|---|---|---|---|
| 7 Day | -0.8% | 1.7% | -3.2% |
| 30 Day | 0.7% | 8.9% | -0.8% |
| 90 Day | 3.5% | 15.4% | 3.1% |
| 1 Year | 13.3%13.3% | 26.6%25.3% | 42.0%38.9% |
| 3 Year | n/a | 10.4%3.8% | 60.6%50.3% |
| 5 Year | n/a | 65.1%48.8% | 128.0%102.5% |
Long-Term Price Volatility Vs. Market
How volatile is GreenTree Hospitality Group's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 day ago | Simply Wall St
The Trends At GreenTree Hospitality Group (NYSE:GHG) That You Should Know About2 weeks ago | Simply Wall St
Can You Imagine How GreenTree Hospitality Group's (NYSE:GHG) Shareholders Feel About The 14% Share Price Increase?1 month ago | Simply Wall St
Will Weakness in GreenTree Hospitality Group Ltd.'s (NYSE:GHG) Stock Prove Temporary Given Strong Fundamentals?Valuation
Is GreenTree Hospitality Group undervalued compared to its fair value and its price relative to the market?
27.7%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: GHG ($13.09) is trading below our estimate of fair value ($18.11)
Significantly Below Fair Value: GHG is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: GHG is good value based on its PE Ratio (34.5x) compared to the US Hospitality industry average (43.4x).
PE vs Market: GHG is poor value based on its PE Ratio (34.5x) compared to the US market (21.7x).
Price to Earnings Growth Ratio
PEG Ratio: GHG is good value based on its PEG Ratio (0.8x)
Price to Book Ratio
PB vs Industry: GHG is overvalued based on its PB Ratio (4.3x) compared to the US Hospitality industry average (3.7x).
Next Steps
Future Growth
How is GreenTree Hospitality Group forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?
42.0%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: GHG's forecast earnings growth (42% per year) is above the savings rate (2%).
Earnings vs Market: GHG's earnings (42% per year) are forecast to grow faster than the US market (20.3% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: GHG's revenue (30.2% per year) is forecast to grow faster than the US market (10.4% per year).
High Growth Revenue: GHG's revenue (30.2% per year) is forecast to grow faster than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: GHG's Return on Equity is forecast to be high in 3 years time (26.8%)
Next Steps
Past Performance
How has GreenTree Hospitality Group performed over the past 5 years?
6.8%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: GHG has high quality earnings.
Growing Profit Margin: GHG's current net profit margins (27.1%) are lower than last year (40%).
Past Earnings Growth Analysis
Earnings Trend: GHG's earnings have grown by 6.8% per year over the past 5 years.
Accelerating Growth: GHG's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: GHG had negative earnings growth (-39.6%) over the past year, making it difficult to compare to the Hospitality industry average (-58.6%).
Return on Equity
High ROE: GHG's Return on Equity (11%) is considered low.
Next Steps
Financial Health
How is GreenTree Hospitality Group's financial position?
Financial Position Analysis
Short Term Liabilities: GHG's short term assets (CN¥1.4B) exceed its short term liabilities (CN¥783.9M).
Long Term Liabilities: GHG's short term assets (CN¥1.4B) exceed its long term liabilities (CN¥1.0B).
Debt to Equity History and Analysis
Debt Level: GHG's debt to equity ratio (2.7%) is considered satisfactory.
Reducing Debt: Insufficient data to determine if GHG's debt to equity ratio has reduced over the past 5 years.
Debt Coverage: GHG's debt is well covered by operating cash flow (492.1%).
Interest Coverage: GHG earns more interest than it pays, so coverage of interest payments is not a concern.
Balance Sheet
Next Steps
Dividend
What is GreenTree Hospitality Group current dividend yield, its reliability and sustainability?
1.90%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: GHG's dividend (1.9%) is higher than the bottom 25% of dividend payers in the US market (1.33%).
High Dividend: GHG's dividend (1.9%) is low compared to the top 25% of dividend payers in the US market (3.7%).
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, GHG has been paying a dividend for less than 10 years.
Growing Dividend: GHG has only been paying a dividend for 2 years, and since then payments have fallen.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (71.1%), GHG's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: GHG's dividends in 3 years are forecast to be well covered by earnings (26.6% payout ratio).
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Management
How experienced are the management team and are they aligned to shareholders interests?
10.6yrs
Average management tenure
CEO
Alex S. Xu (56 yo)
17.08yrs
Tenure
Mr. Alex S. Xu is the Founder of GreenTree Inns Hotel Management Group., Inc. and serves as its Chief Executive Officer and Chairman. Mr. Xu is the Founder of GreenTree Hospitality Group Ltd. and has been ...
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Founder | 17.08yrs | no data | no data | |
| CFO & Director | 3.08yrs | no data | no data | |
| Vice President of Human Resources & Administration | 5.08yrs | no data | no data | |
| General Counsel & Director | 16.08yrs | no data | no data | |
| Director of IT Department | no data | no data | no data |
10.6yrs
Average Tenure
49yo
Average Age
Experienced Management: GHG's management team is seasoned and experienced (10.6 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Founder | 17.08yrs | no data | no data | |
| CFO & Director | 3.08yrs | no data | no data | |
| General Counsel & Director | 16.08yrs | no data | no data | |
| Independent Director | 10.08yrs | no data | no data | |
| Independent Director | 10.08yrs | no data | no data | |
| Independent Director | 2.92yrs | no data | no data |
10.1yrs
Average Tenure
51yo
Average Age
Experienced Board: GHG's board of directors are seasoned and experienced ( 10.1 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
GreenTree Hospitality Group Ltd.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: GreenTree Hospitality Group Ltd.
- Ticker: GHG
- Exchange: NYSE
- Founded: 2004
- Industry: Hotels, Resorts and Cruise Lines
- Sector: Consumer Services
- Market Cap: US$1.338b
- Shares outstanding: 102.18m
- Website: https://www.998.com
Number of Employees
Location
- GreenTree Hospitality Group Ltd.
- 2451 Hongqiao Road
- Changning District
- Shanghai
- Shanghai Province
- 200335
- China
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| GHG | NYSE (New York Stock Exchange) | Yes | SPONSORED ADS | US | USD | Mar 2018 |
| GT1A | BST (Boerse-Stuttgart) | Yes | SPONSORED ADS | DE | EUR | Mar 2018 |
Biography
GreenTree Hospitality Group Ltd., through its subsidiaries, develops leased-and-operated, and franchised-and-managed hotels under the GreenTree brand in the People’s Republic of China. As of December 31, 2...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/02/25 23:59 |
| End of Day Share Price | 2021/02/25 00:00 |
| Earnings | 2020/09/30 |
| Annual Earnings | 2019/12/31 |
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.