GREENTREE HOSPITALITY GR-ADR (GHG) Stock Fundamental Analysis
NYSE:GHG - New York Stock Exchange, Inc. - US39579V1008 - ADR - Currency: USD
Taking everything into account, GHG scores 5 out of 10 in our fundamental rating. 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
In the past year GHG was profitable.
GHG had a positive operating cash flow in the past year.
Of the past 5 years GHG 4 years were profitable.
In the past 5 years GHG always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.22%, GHG is in line with its industry, outperforming 50.00% of the companies in the same industry.
Looking at the Return On Equity, with a value of 7.54%, GHG is in the better half of the industry, outperforming 65.91% of the companies in the same industry.
With a Return On Invested Capital value of 4.62%, GHG perfoms like the industry average, outperforming 47.73% of the companies in the same 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
With a decent Profit Margin value of 8.19%, GHG is doing good in the industry, outperforming 65.91% of the companies in the same industry.
GHG's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 20.99%, GHG belongs to the best of the industry, outperforming 81.06% of the companies in the same industry.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), GHG is destroying value.
The number of shares outstanding for GHG remains at a similar level compared to 1 year ago.
The number of shares outstanding for GHG has been reduced compared to 5 years ago.
Compared to 1 year ago, GHG has a worse debt to assets ratio.
2.2 Solvency
GHG has an Altman-Z score of 0.81. This is a bad value and indicates that GHG is not financially healthy and even has some risk of bankruptcy.
GHG has a worse Altman-Z score (0.81) than 71.21% of its industry peers.
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.
A Debt/Equity ratio of 0.18 indicates that GHG is not too dependend on debt financing.
GHG has a Debt to Equity ratio of 0.18. This is in the better half of the industry: GHG outperforms 78.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 0.87 | ||
| Altman-Z | 0.81 |
ROIC/WACC0.7
WACC6.61%
2.3 Liquidity
A Current Ratio of 1.57 indicates that GHG should not have too much problems paying its short term obligations.
GHG has a better Current ratio (1.57) than 77.27% of its industry peers.
A Quick Ratio of 1.57 indicates that GHG should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.57, GHG is doing good in the industry, outperforming 78.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.57 | ||
| Quick Ratio | 1.57 |
3. Growth
3.1 Past
GHG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -58.94%.
The earnings per share for GHG have been decreasing by -24.24% on average. This is quite bad
GHG shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -17.44%.
GHG shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.24% yearly.
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
The Earnings Per Share is expected to grow by 23.34% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 8.52% on average over the next years. This is quite good.
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 16.67, GHG is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of GHG indicates a rather cheap valuation: GHG is cheaper than 81.06% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.48, GHG is valued a bit cheaper.
GHG is valuated cheaply with a Price/Forward Earnings ratio of 5.01.
97.73% of the companies in the same industry are more expensive than GHG, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.52, GHG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.67 | ||
| Fwd PE | 5.01 |
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.
GHG's Price/Free Cash Flow ratio is rather cheap when compared to the industry. GHG is cheaper than 98.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.21 | ||
| EV/EBITDA | 1.48 |
4.3 Compensation for Growth
GHG's 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)0.64
PEG (5Y)N/A
EPS Next 2Y23.34%
EPS Next 3YN/A
5. Dividend
5.1 Amount
GHG has a Yearly Dividend Yield of 3.54%. Purely for dividend investing, there may be better candidates out there.
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.
Compared to an average S&P500 Dividend Yield of 2.34, GHG pays a better dividend.
| 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
64.49% of the earnings are spent on dividend by GHG. This is not a sustainable payout ratio.
DP64.49%
EPS Next 2Y23.34%
EPS Next 3YN/A
NYSE:GHG (7/17/2025, 8:04:00 PM)
2.5
+0.1 (+4.17%)
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 Cap253.86M
Analysts45
Price Target3.67 (46.8%)
Short Float %0.09%
Short Ratio0.45
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 | 16.67 | ||
| Fwd PE | 5.01 | ||
| P/S | 1.36 | ||
| P/FCF | 6.21 | ||
| P/OCF | 4.88 | ||
| P/B | 1.25 | ||
| P/tB | 1.42 | ||
| EV/EBITDA | 1.48 |
EPS(TTM)0.15
EY6%
EPS(NY)0.5
Fwd EY19.97%
FCF(TTM)0.4
FCFY16.11%
OCF(TTM)0.51
OCFY20.48%
SpS1.84
BVpS2
TBVpS1.76
PEG (NY)0.64
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 | 0.81 |
F-Score4
WACC6.61%
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%