NYSE:GHG

Stock Analysis Report

GreenTree Hospitality Group

Executive Summary

GreenTree Hospitality Group Ltd., through its subsidiaries, operates as a franchised hotel operator in the People’s Republic of China.

Snowflake

Fundamentals

Solid track record 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


Market Performance


7 Day Return

12.1%

NYSE:GHG

3.6%

US Hospitality

2.9%

US Market


1 Year Return

-16.4%

NYSE:GHG

-4.2%

US Hospitality

0.2%

US Market

GHG underperformed the Hospitality industry which returned -5.4% over the past year.

GHG underperformed the Market in United States of America which returned -0.7% over the past year.


Share holder returns

GHGIndustryMarket
7 Day12.1%3.6%2.9%
30 Day-5.2%-3.5%-2.3%
90 Day-14.6%2.2%3.1%
1 Year-14.4%-16.4%-1.9%-4.2%2.4%0.2%
3 Yearn/a46.1%36.9%41.7%32.4%
5 Yearn/a34.7%19.9%55.1%37.9%

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

Valuation

Is GreenTree Hospitality Group undervalued based on future cash flows and its price relative to the stock market?

40%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

GreenTree Hospitality Group's share price is below the future cash flow value, and at a moderate discount (> 20%).

GreenTree Hospitality Group's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

GreenTree Hospitality Group is good value based on earnings compared to the US Hospitality industry average.

GreenTree Hospitality Group is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

GreenTree Hospitality Group is poor value based on expected growth next year.


Price Based on Value of Assets

GreenTree Hospitality Group is overvalued based on assets compared to the US Hospitality industry average.


Next Steps

Future Growth

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

12.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

GreenTree Hospitality Group's revenue is expected to grow by 13.6% yearly, however this is not considered high growth (20% yearly).

GreenTree Hospitality Group's earnings are expected to grow by 12.7% yearly, however this is not considered high growth (20% yearly).

GreenTree Hospitality Group's revenue growth is expected to exceed the United States of America market average.

GreenTree Hospitality Group's earnings growth is positive but not above the United States of America market average.

GreenTree Hospitality Group's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

GreenTree Hospitality Group is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


Next Steps

Past Performance

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

18.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

GreenTree Hospitality Group's year on year earnings growth rate has been positive over the past 5 years.

GreenTree Hospitality Group's 1-year earnings growth exceeds its 5-year average (65.4% vs 18.9%)

GreenTree Hospitality Group's earnings growth has exceeded the US Hospitality industry average in the past year (65.4% vs -8.7%).


Return on Equity

GreenTree Hospitality Group has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).


Return on Assets

GreenTree Hospitality Group used its assets more efficiently than the US Hospitality industry average last year based on Return on Assets.


Return on Capital Employed

GreenTree Hospitality Group's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is GreenTree Hospitality Group's financial position?


Financial Position Analysis

GreenTree Hospitality Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

GreenTree Hospitality Group's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

GreenTree Hospitality Group's level of debt (3.2%) compared to net worth is satisfactory (less than 40%).

Unable to establish if GreenTree Hospitality Group's debt level has increased without past 5-year debt data.

Debt is well covered by operating cash flow (933%, greater than 20% of total debt).

GreenTree Hospitality Group earns more interest than it pays, coverage of interest payments is not a concern.


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 24.9x debt.


Next Steps

Dividend

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

1.57%

Expected Dividend Yield


Dividend Yield and Payments Analysis

GreenTree Hospitality Group's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).

GreenTree Hospitality Group's dividend is below the markets top 25% of dividend payers in United States of America (3.85%).

It is too early to tell whether GreenTree Hospitality Group has stable dividend payments.

GreenTree Hospitality Group only just started paying a dividend, it is too early to tell if payments are increasing.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2.3x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (4.3x coverage).


Next Steps

Management

What is the CEO of GreenTree Hospitality Group's salary, the management and board of directors tenure and is there insider trading?

9.1yrs

Average management tenure


CEO

Alex S. Xu (55yo)

15.6yrs

Tenure

0

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  ...


Management Age and Tenure

9.1yrs

Average Tenure

48yo

Average Age

The average tenure for the GreenTree Hospitality Group management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

8.6yrs

Average Tenure

50.5yo

Average Age

The tenure for the GreenTree Hospitality Group board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Gregory James Karns (63yo)

    General Counsel & Director

    • Tenure: 14.6yrs
  • Alex S. Xu (55yo)

    Founder

    • Tenure: 15.6yrs
  • Yiping Yang (36yo)

    CFO & Director

    • Tenure: 1.6yrs
  • Wen Qi (41yo)

    Vice President of Human Resources & Administration

    • Tenure: 3.6yrs
  • Qing Huang

    Director of IT Department

    • Tenure: 0.0yrs

Board Members

  • Bingwu Xie (49yo)

    Independent Director

    • Tenure: 8.6yrs
  • Gregory James Karns (63yo)

    General Counsel & Director

    • Tenure: 14.6yrs
  • Akira Hirabayashi (52yo)

    Independent Director

    • Tenure: 8.6yrs
  • Alex S. Xu (55yo)

    Founder

    • Tenure: 15.6yrs
  • Yiping Yang (36yo)

    CFO & Director

    • Tenure: 1.6yrs
  • Dong Li (43yo)

    Independent Director

    • Tenure: 1.4yrs

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$1.170b
  • Shares outstanding: 101.87m
  • Website: https://www.998.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GHGNYSE (New York Stock Exchange)YesSPONSORED ADSUSUSDMar 2018

Biography

GreenTree Hospitality Group Ltd., through its subsidiaries, operates as a franchised hotel operator in the People’s Republic of China. The company operates hotels under the brand names of GreenTree Eastern ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/22 00:45
End of Day Share Price2019/08/21 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.