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 135 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
In the past year GHG was profitable.
GHG had a positive operating cash flow in the past year.
GHG had positive earnings in 4 of the past 5 years.
Each year in the past 5 years GHG had a positive operating cash flow.
1.2 Ratios
GHG has a Return On Assets (3.05%) which is in line with its industry peers.
GHG's Return On Equity of 9.99% is fine compared to the rest of the industry. GHG outperforms 69.47% of its industry peers.
With a Return On Invested Capital value of 5.51%, GHG perfoms like the industry average, outperforming 48.09% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.05% | ||
| ROE | 9.99% | ||
| ROIC | 5.51% |
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
The Profit Margin of GHG (11.01%) is better than 76.34% of its industry peers.
GHG's Profit Margin has declined in the last couple of years.
GHG has a Operating Margin of 21.97%. This is amongst the best in the industry. GHG outperforms 81.68% of its industry peers.
GHG's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.97% | ||
| PM (TTM) | 11.01% | ||
| 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.
The number of shares outstanding for GHG has been reduced compared to 1 year ago.
Compared to 5 years ago, GHG has about the same amount of shares outstanding.
The debt/assets ratio for GHG has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.87, we must say that GHG is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.87, GHG is not doing good in the industry: 69.47% of the companies in the same industry are doing better.
The Debt to FCF ratio of GHG is 1.06, which is an excellent value as it means it would take GHG, only 1.06 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 1.06, GHG belongs to the best of the industry, outperforming 90.08% of the companies in the same industry.
A Debt/Equity ratio of 0.17 indicates that GHG is not too dependend on debt financing.
The Debt to Equity ratio of GHG (0.17) is better than 80.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 1.06 | ||
| Altman-Z | 0.87 |
ROIC/WACC0.71
WACC7.81%
2.3 Liquidity
GHG has a Current Ratio of 1.54. This is a normal value and indicates that GHG is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Current ratio value of 1.54, GHG is doing good in the industry, outperforming 73.28% of the companies in the same industry.
GHG has a Quick Ratio of 1.53. This is a normal value and indicates that GHG is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of GHG (1.53) is better than 75.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.54 | ||
| Quick Ratio | 1.53 |
3. Growth
3.1 Past
GHG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -36.48%.
Measured over the past years, GHG shows a decrease in Earnings Per Share. The EPS has been decreasing by -6.79% on average per year.
The Revenue for GHG has decreased by -18.65% in the past year. This is quite bad
The Revenue has been growing by 12.44% on average over the past years. This is quite good.
EPS 1Y (TTM)-36.48%
EPS 3Y1.27%
EPS 5Y-6.79%
EPS Q2Q%-26.4%
Revenue 1Y (TTM)-18.65%
Revenue growth 3Y20.5%
Revenue growth 5Y12.44%
Sales Q2Q%-22.54%
3.2 Future
Based on estimates for the next years, GHG will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.04% on average per year.
GHG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.96% yearly.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
A Price/Earnings ratio of 13.81 indicates a correct valuation of GHG.
Based on the Price/Earnings ratio, GHG is valued cheaply inside the industry as 87.02% of the companies are valued more expensively.
GHG's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.62.
GHG is valuated cheaply with a Price/Forward Earnings ratio of 5.87.
GHG's Price/Forward Earnings ratio is rather cheap when compared to the industry. GHG is cheaper than 99.24% of the companies in the same industry.
GHG is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.70, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.81 | ||
| Fwd PE | 5.87 |
4.2 Price Multiples
99.24% of the companies in the same industry are more expensive than GHG, based on the Enterprise Value to EBITDA ratio.
GHG's Price/Free Cash Flow ratio is rather cheap when compared to the industry. GHG is cheaper than 95.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.85 | ||
| EV/EBITDA | 1.97 |
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 2.87%.
Compared to an average industry Dividend Yield of 3.13, GHG pays a better dividend. On top of this GHG pays more dividend than 87.02% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.27, GHG pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.87% |
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
0.49% of the earnings are spent on dividend by GHG. This is a low number and sustainable payout ratio.
DP0.49%
EPS Next 2Y7.89%
EPS Next 3Y12.04%
2.9
-0.06 (-2.03%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners12.77%
Inst Owner Change-99.98%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap294.48M
Analysts45
Price Target3.67 (26.55%)
Short Float %0.29%
Short Ratio2.9
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.87% |
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0.49%
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)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
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)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.81 | ||
| Fwd PE | 5.87 | ||
| P/S | 1.51 | ||
| P/FCF | 8.85 | ||
| P/OCF | 7.46 | ||
| P/B | 1.37 | ||
| P/tB | 1.69 | ||
| EV/EBITDA | 1.97 |
EPS(TTM)0.21
EY7.24%
EPS(NY)0.49
Fwd EY17.04%
FCF(TTM)0.33
FCFY11.3%
OCF(TTM)0.39
OCFY13.4%
SpS1.92
BVpS2.11
TBVpS1.72
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.05% | ||
| ROE | 9.99% | ||
| ROCE | 8% | ||
| ROIC | 5.51% | ||
| ROICexc | 9.13% | ||
| ROICexgc | 10.43% | ||
| OM | 21.97% | ||
| PM (TTM) | 11.01% | ||
| GM | N/A | ||
| FCFM | 17.12% |
ROA(3y)0.11%
ROA(5y)3.66%
ROE(3y)-0.49%
ROE(5y)6.95%
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 3Y-9.88%
ROICexcg growth 5Y-47.56%
ROICexc growth 3Y-3.94%
ROICexc growth 5Y-46.57%
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
F-Score4
Asset Turnover0.28
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 1.06 | ||
| Debt/EBITDA | 0.61 | ||
| Cap/Depr | 39.26% | ||
| Cap/Sales | 3.17% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 67.51% | ||
| Profit Quality | 155.44% | ||
| Current Ratio | 1.54 | ||
| Quick Ratio | 1.53 | ||
| Altman-Z | 0.87 |
F-Score4
WACC7.81%
ROIC/WACC0.71
Cap/Depr(3y)236.93%
Cap/Depr(5y)283.12%
Cap/Sales(3y)19.78%
Cap/Sales(5y)18.25%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-36.48%
EPS 3Y1.27%
EPS 5Y-6.79%
EPS Q2Q%-26.4%
EPS Next Y-7.54%
EPS Next 2Y7.89%
EPS Next 3Y12.04%
EPS Next 5YN/A
Revenue 1Y (TTM)-18.65%
Revenue growth 3Y20.5%
Revenue growth 5Y12.44%
Sales Q2Q%-22.54%
Revenue Next Year-12.6%
Revenue Next 2Y-2.5%
Revenue Next 3Y0.96%
Revenue Next 5YN/A
EBIT growth 1Y-21.42%
EBIT growth 3Y1.68%
EBIT growth 5Y-7.85%
EBIT Next Year31.05%
EBIT Next 3Y21.25%
EBIT Next 5YN/A
FCF growth 1Y64.3%
FCF growth 3Y26.17%
FCF growth 5Y-2.35%
OCF growth 1Y55.73%
OCF growth 3Y15.5%
OCF growth 5Y-3.89%