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GHG

GreenTree Hospitality GroupNYSE:GHG Stock Report

Last Price

US$7.21

Market Cap

US$743.0m

7D

-15.5%

1Y

-45.4%

Updated

17 Jan, 2022

Data

Company Financials +
GHG fundamental analysis
Snowflake Score
Valuation5/6
Future Growth6/6
Past Performance1/6
Financial Health5/6
Dividends4/6

GHG Stock Overview

GreenTree Hospitality Group Ltd., through its subsidiaries, develops and sells leased-and-operated, and franchised-and-managed hotels under the GreenTree brand in the People’s Republic of China.

GreenTree Hospitality Group Competitors

Huazhu Group

NasdaqGS:HTHT

US$11.2b

Price History & Performance

Summary of all time highs, changes and price drops for GreenTree Hospitality Group
Historical stock prices
Current Share PriceUS$7.21
52 Week HighUS$16.50
52 Week LowUS$7.00
Beta0.70
1 Month Change-9.19%
3 Month Change-16.65%
1 Year Change-45.42%
3 Year Change-44.28%
5 Year Changen/a
Change since IPO-44.54%

Recent News & Updates

Jan 17

Covid Disruptions Chop Into GreenTree Profit, As It Tries To Focus On Future

GreenTree Hospitality’s revenue rose 16% in the third quarter on new property openings, but RevPAR for existing hotels was down 1.8% year-on-year. The company looks undervalued compared with domestic rivals but ranks stronger than international peer Accor. The analyst community remains relatively bullish on GreenTree.

Jan 08
There Are Reasons To Feel Uneasy About GreenTree Hospitality Group's (NYSE:GHG) Returns On Capital

There Are Reasons To Feel Uneasy About GreenTree Hospitality Group's (NYSE:GHG) Returns On Capital

What trends should we look for it we want to identify stocks that can multiply in value over the long term? In a...

Dec 09
We Think GreenTree Hospitality Group (NYSE:GHG) Can Stay On Top Of Its Debt

We Think GreenTree Hospitality Group (NYSE:GHG) Can Stay On Top Of Its Debt

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...

Shareholder Returns

GHGUS HospitalityUS Market
7D-15.5%0.6%-0.3%
1Y-45.4%-0.3%13.7%

Return vs Industry: GHG underperformed the US Hospitality industry which returned -0.3% over the past year.

Return vs Market: GHG underperformed the US Market which returned 13.7% over the past year.

Price Volatility

Is GHG's price volatile compared to industry and market?
GHG volatility
GHG Average Weekly Movement8.8%
Hospitality Industry Average Movement7.8%
Market Average Movement6.6%
10% most volatile stocks in US Market15.9%
10% least volatile stocks in US Market2.4%

Stable Share Price: GHG is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: GHG's weekly volatility (9%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
20042,565Alex S. Xuhttps://www.998.com

GreenTree Hospitality Group Ltd., through its subsidiaries, develops and sells leased-and-operated, and franchised-and-managed hotels under the GreenTree brand in the People’s Republic of China. As of December 31, 2020, it operated 40 leased-and-operated hotels; and had franchised-and-managed hotels network consisting of 4,300 hotels with 315,335 rooms in operation covering 345 cities in China, and an additional 1,186 hotels with 83,106 rooms that were contracted for or under development. The company was founded in 2004 and is headquartered in Shanghai, the People’s Republic of China.

GreenTree Hospitality Group Fundamentals Summary

How do GreenTree Hospitality Group's earnings and revenue compare to its market cap?
GHG fundamental statistics
Market CapCN¥4.72b
Earnings (TTM)CN¥271.22m
Revenue (TTM)CN¥1.19b

17.4x

P/E Ratio

4.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
GHG income statement (TTM)
RevenueCN¥1.19b
Cost of RevenueCN¥559.28m
Gross ProfitCN¥629.19m
ExpensesCN¥357.97m
EarningsCN¥271.22m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)2.63
Gross Margin52.94%
Net Profit Margin22.82%
Debt/Equity Ratio9.7%

How did GHG perform over the long term?

See historical performance and comparison

Dividends

3.5%

Current Dividend Yield

66%

Payout Ratio

Valuation

Is GreenTree Hospitality Group undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GHG ($7.21) is trading below our estimate of fair value ($24.07)

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 (17.4x) compared to the US Hospitality industry average (27.1x).

PE vs Market: GHG's PE Ratio (17.4x) is in line with the US market.


Price to Earnings Growth Ratio

PEG Ratio: GHG is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: GHG is good value based on its PB Ratio (2.1x) compared to the US Hospitality industry average (3.1x).


Future Growth

How is GreenTree Hospitality Group forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

42.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GHG's forecast earnings growth (42.3% per year) is above the savings rate (2%).

Earnings vs Market: GHG's earnings (42.3% per year) are forecast to grow faster than the US market (13% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: GHG's revenue (21.1% per year) is forecast to grow faster than the US market (9.3% per year).

High Growth Revenue: GHG's revenue (21.1% 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 (20.5%)


Past Performance

How has GreenTree Hospitality Group performed over the past 5 years?

-0.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GHG has a high level of non-cash earnings.

Growing Profit Margin: GHG's current net profit margins (22.8%) are lower than last year (27.1%).


Past Earnings Growth Analysis

Earnings Trend: GHG's earnings have declined by 0.3% per year over the past 5 years.

Accelerating Growth: GHG's earnings growth over the past year (7.6%) exceeds its 5-year average (-0.3% per year).

Earnings vs Industry: GHG earnings growth over the past year (7.6%) underperformed the Hospitality industry 79.7%.


Return on Equity

High ROE: GHG's Return on Equity (10.5%) is considered low.


Financial Health

How is GreenTree Hospitality Group's financial position?


Financial Position Analysis

Short Term Liabilities: GHG's short term assets (CN¥1.7B) exceed its short term liabilities (CN¥1.0B).

Long Term Liabilities: GHG's short term assets (CN¥1.7B) exceed its long term liabilities (CN¥1.0B).


Debt to Equity History and Analysis

Debt Level: GHG has more cash than its total debt.

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 (115.9%).

Interest Coverage: GHG earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is GreenTree Hospitality Group current dividend yield, its reliability and sustainability?

3.48%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: GHG's dividend (3.48%) is higher than the bottom 25% of dividend payers in the US market (1.32%).

High Dividend: GHG's dividend (3.48%) is in the top 25% of dividend payers in the US market (3.44%)


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 3 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (66.1%), 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 thoroughly covered by earnings (14.8% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

11.5yrs

Average management tenure


CEO

Alex S. Xu (57 yo)

18yrs

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

Experienced Management: GHG's management team is seasoned and experienced (11.5 years average tenure).


Board Members

Experienced Board: GHG's board of directors are seasoned and experienced ( 11 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 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
  • Implied Market Cap: US$742.990m
  • Shares outstanding: 103.05m
  • Website: https://www.998.com

Number of Employees


Location

  • GreenTree Hospitality Group Ltd.
  • 2451 Hongqiao Road
  • Changning District
  • Shanghai
  • 200335
  • China

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/17 23:24
End of Day Share Price2022/01/14 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.