| Snowflake Score | |
|---|---|
| Valuation | 5/6 |
| Future Growth | 6/6 |
| Past Performance | 1/6 |
| Financial Health | 5/6 |
| Dividends | 4/6 |
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
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$7.21 |
| 52 Week High | US$16.50 |
| 52 Week Low | US$7.00 |
| Beta | 0.70 |
| 1 Month Change | -9.19% |
| 3 Month Change | -16.65% |
| 1 Year Change | -45.42% |
| 3 Year Change | -44.28% |
| 5 Year Change | n/a |
| Change since IPO | -44.54% |
Recent News & Updates
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.
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...
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
| GHG | US Hospitality | US 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
| GHG volatility | |
|---|---|
| GHG Average Weekly Movement | 8.8% |
| Hospitality Industry Average Movement | 7.8% |
| Market Average Movement | 6.6% |
| 10% most volatile stocks in US Market | 15.9% |
| 10% least volatile stocks in US Market | 2.4% |
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
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 2004 | 2,565 | Alex S. Xu | https://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
| GHG fundamental statistics | |
|---|---|
| Market Cap | CN¥4.72b |
| Earnings (TTM) | CN¥271.22m |
| Revenue (TTM) | CN¥1.19b |
17.4x
P/E Ratio4.0x
P/S RatioIs GHG overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| GHG income statement (TTM) | |
|---|---|
| Revenue | CN¥1.19b |
| Cost of Revenue | CN¥559.28m |
| Gross Profit | CN¥629.19m |
| Expenses | CN¥357.97m |
| Earnings | CN¥271.22m |
Last Reported Earnings
Sep 30, 2021
Next Earnings Date
n/a
| Earnings per share (EPS) | 2.63 |
| Gross Margin | 52.94% |
| Net Profit Margin | 22.82% |
| Debt/Equity Ratio | 9.7% |
How did GHG perform over the long term?
See historical performance and comparisonDividends
3.5%
Current Dividend Yield66%
Payout RatioValuation
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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/01/17 23:24 |
| End of Day Share Price | 2022/01/14 00:00 |
| Earnings | 2021/09/30 |
| Annual Earnings | 2020/12/31 |
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.