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GreenTree Hospitality Group

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


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

GHGIndustryMarket
7 Day-0.8%1.7%-3.2%
30 Day0.7%8.9%-0.8%
90 Day3.5%15.4%3.1%
1 Year13.3%13.3%26.6%25.3%42.0%38.9%
3 Yearn/a10.4%3.8%60.6%50.3%
5 Yearn/a65.1%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

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).


Next Steps

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

NamePositionTenureCompensationOwnership
Alex S. Xu
Founder17.08yrsno datano data
Yiping Yang
CFO & Director3.08yrsno datano data
Wen Qi
Vice President of Human Resources & Administration5.08yrsno datano data
Gregory James Karns
General Counsel & Director16.08yrsno datano data
Qing Huang
Director of IT Departmentno datano datano 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

NamePositionTenureCompensationOwnership
Alex S. Xu
Founder17.08yrsno datano data
Yiping Yang
CFO & Director3.08yrsno datano data
Gregory James Karns
General Counsel & Director16.08yrsno datano data
Bingwu Xie
Independent Director10.08yrsno datano data
Akira Hirabayashi
Independent Director10.08yrsno datano data
Dong Li
Independent Director2.92yrsno datano 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GHGNYSE (New York Stock Exchange)YesSPONSORED ADSUSUSDMar 2018
GT1ABST (Boerse-Stuttgart)YesSPONSORED ADSDEEURMar 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/02/25 23:59
End of Day Share Price2021/02/25 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.