GREENTREE HOSPITALITY GR-ADR (GHG) Stock Fundamental Analysis
NYSE:GHG - New York Stock Exchange, Inc. - US39579V1008 - ADR - Currency: USD
We assign a fundamental rating of 5 out of 10 to GHG. GHG was compared to 132 industry peers in the Hotels, Restaurants & Leisure industry. GHG has an average financial health and profitability rating. GHG may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
GHG had positive earnings in the past year.
In the past year GHG had a positive cash flow from operations.
GHG had positive earnings in 4 of the past 5 years.
In the past 5 years GHG always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 2.22%, GHG perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
GHG has a better Return On Equity (7.54%) than 65.91% of its industry peers.
The Return On Invested Capital of GHG (4.62%) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.22% | ||
| ROE | 7.54% | ||
| ROIC | 4.62% |
ROA(3y)0.01%
ROA(5y)1.79%
ROE(3y)-0.08%
ROE(5y)3.7%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
GHG's Profit Margin of 8.19% is fine compared to the rest of the industry. GHG outperforms 65.91% of its industry peers.
GHG's Profit Margin has declined in the last couple of years.
GHG's Operating Margin of 20.99% is amongst the best of the industry. GHG outperforms 81.06% of its industry peers.
In the last couple of years the Operating Margin of GHG has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.99% | ||
| PM (TTM) | 8.19% | ||
| GM | N/A |
OM growth 3Y18.05%
OM growth 5Y-14.6%
PM growth 3Y-5.6%
PM growth 5Y-27.38%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
GHG has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, GHG has about the same amount of shares outstanding.
Compared to 5 years ago, GHG has less shares outstanding
The debt/assets ratio for GHG is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.78, we must say that GHG is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.78, GHG is doing worse than 71.97% of the companies in the same industry.
GHG has a debt to FCF ratio of 0.87. This is a very positive value and a sign of high solvency as it would only need 0.87 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 0.87, GHG belongs to the best of the industry, outperforming 89.39% of the companies in the same industry.
GHG has a Debt/Equity ratio of 0.18. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.18, GHG is in the better half of the industry, outperforming 78.03% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 0.87 | ||
| Altman-Z | 0.78 |
ROIC/WACC0.7
WACC6.58%
2.3 Liquidity
GHG has a Current Ratio of 1.57. This is a normal value and indicates that GHG is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.57, GHG is in the better half of the industry, outperforming 77.27% of the companies in the same industry.
A Quick Ratio of 1.57 indicates that GHG should not have too much problems paying its short term obligations.
The Quick ratio of GHG (1.57) is better than 78.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.57 | ||
| Quick Ratio | 1.57 |
3. Growth
3.1 Past
The earnings per share for GHG have decreased strongly by -58.94% in the last year.
Measured over the past years, GHG shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -24.24% on average per year.
GHG shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -17.44%.
The Revenue has been growing slightly by 4.24% on average over the past years.
EPS 1Y (TTM)-58.94%
EPS 3Y-1.68%
EPS 5Y-24.24%
EPS Q2Q%-148.39%
Revenue 1Y (TTM)-17.44%
Revenue growth 3Y3.66%
Revenue growth 5Y4.24%
Sales Q2Q%-18.18%
3.2 Future
GHG is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 23.34% yearly.
Based on estimates for the next years, GHG will show a quite strong growth in Revenue. The Revenue will grow by 8.52% on average per year.
EPS Next Y25.89%
EPS Next 2Y23.34%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year8.78%
Revenue Next 2Y8.52%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 15.47, which indicates a correct valuation of GHG.
GHG's Price/Earnings ratio is rather cheap when compared to the industry. GHG is cheaper than 82.58% of the companies in the same industry.
When comparing the Price/Earnings ratio of GHG to the average of the S&P500 Index (27.52), we can say GHG is valued slightly cheaper.
A Price/Forward Earnings ratio of 4.64 indicates a rather cheap valuation of GHG.
Based on the Price/Forward Earnings ratio, GHG is valued cheaply inside the industry as 98.48% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of GHG to the average of the S&P500 Index (35.58), we can say GHG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.47 | ||
| Fwd PE | 4.64 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GHG is valued cheaper than 100.00% of the companies in the same industry.
98.48% of the companies in the same industry are more expensive than GHG, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.75 | ||
| EV/EBITDA | 1.14 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
GHG's earnings are expected to grow with 23.34% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.6
PEG (5Y)N/A
EPS Next 2Y23.34%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.54%, GHG has a reasonable but not impressive dividend return.
GHG's Dividend Yield is rather good when compared to the industry average which is at 3.47. GHG pays more dividend than 87.88% of the companies in the same industry.
GHG's Dividend Yield is rather good when compared to the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.54% |
5.2 History
The dividend of GHG decreases each year by -20.70%.
GHG has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)-20.7%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
GHG pays out 64.49% of its income as dividend. This is not a sustainable payout ratio.
DP64.49%
EPS Next 2Y23.34%
EPS Next 3YN/A
NYSE:GHG (7/14/2025, 8:04:00 PM)
2.32
-0.01 (-0.43%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners12.04%
Inst Owner Change0%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap235.58M
Analysts45
Price Target3.67 (58.19%)
Short Float %0.08%
Short Ratio0.31
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.54% |
Yearly Dividend0.1
Dividend Growth(5Y)-20.7%
DP64.49%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-10.58%
Min Revenue beat(2)-14.4%
Max Revenue beat(2)-6.75%
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.47 | ||
| Fwd PE | 4.64 | ||
| P/S | 1.26 | ||
| P/FCF | 5.75 | ||
| P/OCF | 4.52 | ||
| P/B | 1.16 | ||
| P/tB | 1.31 | ||
| EV/EBITDA | 1.14 |
EPS(TTM)0.15
EY6.47%
EPS(NY)0.5
Fwd EY21.56%
FCF(TTM)0.4
FCFY17.4%
OCF(TTM)0.51
OCFY22.11%
SpS1.85
BVpS2
TBVpS1.77
PEG (NY)0.6
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.22% | ||
| ROE | 7.54% | ||
| ROCE | 7.46% | ||
| ROIC | 4.62% | ||
| ROICexc | 7.62% | ||
| ROICexgc | 8.24% | ||
| OM | 20.99% | ||
| PM (TTM) | 8.19% | ||
| GM | N/A | ||
| FCFM | 21.87% |
ROA(3y)0.01%
ROA(5y)1.79%
ROE(3y)-0.08%
ROE(5y)3.7%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3Y22.35%
ROICexcg growth 5Y-16.7%
ROICexc growth 3Y30.19%
ROICexc growth 5Y-12.38%
OM growth 3Y18.05%
OM growth 5Y-14.6%
PM growth 3Y-5.6%
PM growth 5Y-27.38%
GM growth 3YN/A
GM growth 5YN/A
F-Score4
Asset Turnover0.27
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 0.87 | ||
| Debt/EBITDA | 0.64 | ||
| Cap/Depr | 68.79% | ||
| Cap/Sales | 5.93% | ||
| Interest Coverage | 35.78 | ||
| Cash Conversion | 93.87% | ||
| Profit Quality | 267.05% | ||
| Current Ratio | 1.57 | ||
| Quick Ratio | 1.57 | ||
| Altman-Z | 0.78 |
F-Score4
WACC6.58%
ROIC/WACC0.7
Cap/Depr(3y)69.13%
Cap/Depr(5y)190.15%
Cap/Sales(3y)6.25%
Cap/Sales(5y)15.48%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-58.94%
EPS 3Y-1.68%
EPS 5Y-24.24%
EPS Q2Q%-148.39%
EPS Next Y25.89%
EPS Next 2Y23.34%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-17.44%
Revenue growth 3Y3.66%
Revenue growth 5Y4.24%
Sales Q2Q%-18.18%
Revenue Next Year8.78%
Revenue Next 2Y8.52%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-15.98%
EBIT growth 3Y22.37%
EBIT growth 5Y-10.99%
EBIT Next Year45.92%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-19.86%
FCF growth 3YN/A
FCF growth 5Y-0.31%
OCF growth 1Y-17.95%
OCF growth 3Y1.13%
OCF growth 5Y-6.19%