GREENTREE HOSPITALITY GR-ADR (GHG)
US39579V1008 - ADR
We assign a fundamental rating of 6 out of 10 to GHG. GHG was compared to 135 industry peers in the Hotels, Restaurants & Leisure industry. GHG has only an average score on both its financial health and profitability. GHG may be a bit undervalued, certainly considering the very reasonable score on growth This makes GHG very considerable for value investing!
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
GHG's Return On Assets of 4.05% is fine compared to the rest of the industry. GHG outperforms 64.18% of its industry peers.
GHG has a better Return On Equity (13.35%) than 73.88% of its industry peers.
With a Return On Invested Capital value of 5.97%, GHG perfoms like the industry average, outperforming 52.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.05% | ||
| ROE | 13.35% | ||
| ROIC | 5.97% |
ROA(3y)0.11%
ROA(5y)3.66%
ROE(3y)-0.49%
ROE(5y)6.95%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
GHG has a better Profit Margin (13.69%) than 83.58% of its industry peers.
In the last couple of years the Profit Margin of GHG has declined.
The Operating Margin of GHG (22.53%) is better than 83.58% of its industry peers.
GHG's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.53% | ||
| PM (TTM) | 13.69% | ||
| GM | N/A |
OM growth 3Y-15.62%
OM growth 5Y-18.04%
PM growth 3Y-16.17%
PM growth 5Y-16.61%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so GHG is destroying value.
Compared to 1 year ago, GHG has less shares outstanding
Compared to 5 years ago, GHG has about the same amount of shares outstanding.
Compared to 1 year ago, GHG has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.86, we must say that GHG is in the distress zone and has some risk of bankruptcy.
GHG has a worse Altman-Z score (0.86) than 69.40% of its industry peers.
The Debt to FCF ratio of GHG is 0.97, which is an excellent value as it means it would take GHG, only 0.97 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 0.97, GHG belongs to the best of the industry, outperforming 89.55% of the companies in the same industry.
GHG has a Debt/Equity ratio of 0.16. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.16, GHG is in the better half of the industry, outperforming 79.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 0.97 | ||
| Altman-Z | 0.86 |
ROIC/WACC0.85
WACC7.01%
2.3 Liquidity
A Current Ratio of 1.49 indicates that GHG should not have too much problems paying its short term obligations.
GHG's Current ratio of 1.49 is fine compared to the rest of the industry. GHG outperforms 69.40% of its industry peers.
A Quick Ratio of 1.48 indicates that GHG should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.48, GHG is doing good in the industry, outperforming 72.39% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.49 | ||
| Quick Ratio | 1.48 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 171.11% over the past year.
GHG shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -6.79% yearly.
GHG shows a strong growth in Revenue. In the last year, the Revenue has grown by 73.70%.
GHG shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.44% yearly.
EPS 1Y (TTM)171.11%
EPS 3Y1.27%
EPS 5Y-6.79%
EPS Q2Q%-50.2%
Revenue 1Y (TTM)73.7%
Revenue growth 3Y20.5%
Revenue growth 5Y12.44%
Sales Q2Q%-28.46%
3.2 Future
The Earnings Per Share is expected to grow by 12.04% on average over the next years. This is quite good.
The Revenue is expected to grow by 0.96% on average over the next years.
EPS Next Y-7.54%
EPS Next 2Y7.89%
EPS Next 3Y12.04%
EPS Next 5YN/A
Revenue Next Year-12.6%
Revenue Next 2Y-2.5%
Revenue Next 3Y0.96%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 9.68, the valuation of GHG can be described as reasonable.
GHG's Price/Earnings ratio is rather cheap when compared to the industry. GHG is cheaper than 96.27% of the companies in the same industry.
GHG's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.65.
With a Price/Forward Earnings ratio of 5.48, the valuation of GHG can be described as very cheap.
98.51% of the companies in the same industry are more expensive than GHG, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of GHG to the average of the S&P500 Index (23.56), we can say GHG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.68 | ||
| Fwd PE | 5.48 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GHG is valued cheaply inside the industry as 96.27% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of GHG indicates a rather cheap valuation: GHG is cheaper than 94.78% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.52 | ||
| EV/EBITDA | 1.85 |
4.3 Compensation for Growth
A more expensive valuation may be justified as GHG's earnings are expected to grow with 12.04% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y7.89%
EPS Next 3Y12.04%
5. Dividend
5.1 Amount
GHG has a Yearly Dividend Yield of 3.14%.
Compared to an average industry Dividend Yield of 2.83, GHG pays a better dividend. On top of this GHG pays more dividend than 88.06% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.23, GHG pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.14% |
5.2 History
GHG has paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
0.37% of the earnings are spent on dividend by GHG. This is a low number and sustainable payout ratio.
DP0.37%
EPS Next 2Y7.89%
EPS Next 3Y12.04%
GREENTREE HOSPITALITY GR-ADR
NYSE:GHG (11/20/2024, 8:27:49 PM)
2.71
0 (0%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap275.18M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.14% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.68 | ||
| Fwd PE | 5.48 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.05% | ||
| ROE | 13.35% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 22.53% | ||
| PM (TTM) | 13.69% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.3
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.49 | ||
| Quick Ratio | 1.48 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)171.11%
EPS 3Y1.27%
EPS 5Y
EPS Q2Q%
EPS Next Y-7.54%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)73.7%
Revenue growth 3Y20.5%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y