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GHG

GreenTree Hospitality GroupNYSE:GHG Stock Report

Market Cap

US$848.1m

7D

-0.1%

1Y

-40.3%

Updated

26 Sep, 2021

Data

Company Financials +
GHG fundamental analysis
Snowflake Score
Valuation4/6
Future Growth4/6
Past Performance4/6
Financial Health5/6
Dividends3/6

GHG 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

Summary of all time highs, changes and price drops for GreenTree Hospitality Group
Historical stock prices
Current Share PriceUS$8.23
52 Week HighUS$7.55
52 Week LowUS$16.50
Beta0.68
1 Month Change-6.05%
3 Month Change-26.84%
1 Year Change-40.28%
3 Year Change-35.20%
5 Year Changen/a
Change since IPO-36.69%

Recent News & Updates

Sep 16
Capital Allocation Trends At GreenTree Hospitality Group (NYSE:GHG) Aren't Ideal

Capital Allocation Trends At GreenTree Hospitality Group (NYSE:GHG) Aren't Ideal

If you're not sure where to start when looking for the next multi-bagger, there are a few key trends you should keep an...

Aug 04
Is GreenTree Hospitality Group (NYSE:GHG) A Risky Investment?

Is GreenTree Hospitality Group (NYSE:GHG) A Risky Investment?

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' When we think about how risky a company...

Jul 30

Hotel Operator GreenTree Getting Ready To Check Out Of New York?

The company releases the latest results two months later than usual, blaming the delay on its recent exploration of ‘alternative listings’. GreenTree’s exploration of ‘alternative listings’ reflects Beijing’s recent signals of displeasure at Chinese companies listing in New York. The company is sharply undervalued compared with peers, despite business surpassing pre-Covid levels in June.

Jul 16

GreenTree Hospitality Group: Risky, But Significant Potential Upside

GreenTree Hospitality Group has seen a sharp price drop of late. In spite of the risks, I take the view that the current sell-off is overdone at this time. I anticipate that the stock will recover from here.

Shareholder Returns

GHGUS HospitalityUS Market
7D-0.1%4.2%0.1%
1Y-40.3%38.5%35.3%

Return vs Industry: GHG underperformed the US Hospitality industry which returned 38.5% over the past year.

Return vs Market: GHG underperformed the US Market which returned 35.3% over the past year.

Price Volatility

Is GHG's price volatile compared to industry and market?
GHG volatility
GHG Beta0.68
Industry Beta1.72
Market Beta1

Stable Share Price: GHG is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: GHG's weekly volatility (8%) 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¥5.48b
Earnings (TTM)CN¥343.10m
Revenue (TTM)CN¥1.01b

16.0x

P/E Ratio

5.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
GHG income statement (TTM)
RevenueCN¥1.01b
Cost of RevenueCN¥424.99m
Gross ProfitCN¥588.84m
ExpensesCN¥245.74m
EarningsCN¥343.10m

Last Reported Earnings

Mar 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)3.33
Gross Margin58.08%
Net Profit Margin33.84%
Debt/Equity Ratio12.1%

How did GHG perform over the long term?

See historical performance and comparison

Dividends

3.0%

Current Dividend Yield

52%

Payout Ratio

Valuation

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

15.98x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: GHG ($8.23) is trading above our estimate of fair value ($3.8)

Significantly Below Fair Value: GHG is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: GHG is good value based on its PE Ratio (16x) compared to the US Hospitality industry average (25x).

PE vs Market: GHG is good value based on its PE Ratio (16x) compared to the US market (17.9x).


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 good value based on its PB Ratio (2.5x) compared to the US Hospitality industry average (3.5x).


Future Growth

How is GreenTree Hospitality Group forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

19.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GHG's forecast earnings growth (19% per year) is above the savings rate (2%).

Earnings vs Market: GHG's earnings (19% per year) are forecast to grow faster than the US market (15% per year).

High Growth Earnings: GHG's earnings are forecast to grow, but not significantly.

Revenue vs Market: GHG's revenue (17.6% per year) is forecast to grow faster than the US market (9.8% per year).

High Growth Revenue: GHG's revenue (17.6% per year) is forecast to grow slower 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 (23%)


Past Performance

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

1.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GHG has high quality earnings.

Growing Profit Margin: GHG's current net profit margins (33.8%) are higher than last year (29.2%).


Past Earnings Growth Analysis

Earnings Trend: GHG's earnings have grown by 1.7% per year over the past 5 years.

Accelerating Growth: GHG's earnings growth over the past year (15.9%) exceeds its 5-year average (1.7% per year).

Earnings vs Industry: GHG earnings growth over the past year (15.9%) underperformed the Hospitality industry 80.8%.


Return on Equity

High ROE: GHG's Return on Equity (14%) 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¥1.9B) exceed its short term liabilities (CN¥1.0B).

Long Term Liabilities: GHG's short term assets (CN¥1.9B) exceed its long term liabilities (CN¥979.9M).


Debt to Equity History and Analysis

Debt Level: GHG's debt to equity ratio (12.1%) 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 (122.1%).

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?

2.99%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: GHG's dividend (2.99%) is higher than the bottom 25% of dividend payers in the US market (1.33%).

High Dividend: GHG's dividend (2.99%) is low compared to the top 25% of dividend payers in the US market (3.6%).


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 (52.3%), 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 (19% payout ratio).


Next Steps

Management

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

11.2yrs

Average management tenure


CEO

Alex S. Xu (57 yo)

17.67yrs

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 (11.2 years average tenure).


Board Members

Experienced Board: GHG's board of directors are seasoned and experienced ( 10.7 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
  • Market Cap: US$848.100m
  • 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 Analysis2021/09/26 22:09
End of Day Share Price2021/09/24 00:00
Earnings2021/03/31
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.