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 133 industry peers in the Hotels, Restaurants & Leisure industry. GHG has an average financial health and profitability rating. GHG is valued quite cheap, while showing a decent growth score. This is a good combination!
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.
Of the past 5 years GHG 4 years were profitable.
GHG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
GHG has a Return On Assets (2.22%) which is in line with its industry peers.
GHG's Return On Equity of 7.54% is fine compared to the rest of the industry. GHG outperforms 66.17% of its industry peers.
With a Return On Invested Capital value of 4.62%, GHG perfoms like the industry average, outperforming 45.86% 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
GHG has a better Profit Margin (8.19%) than 66.92% of its industry peers.
In the last couple of years the Profit Margin of GHG has declined.
GHG has a better Operating Margin (20.99%) than 81.20% of its industry peers.
GHG's Operating Margin has declined in the last couple of years.
| 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.
GHG has less shares outstanding than it did 5 years ago.
GHG has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.76, we must say that GHG is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of GHG (0.76) is worse than 72.93% 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.
GHG has a better Debt to FCF ratio (0.87) than 89.47% of its industry peers.
A Debt/Equity ratio of 0.18 indicates that GHG is not too dependend on debt financing.
GHG has a better Debt to Equity ratio (0.18) than 79.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 0.87 | ||
| Altman-Z | 0.76 |
ROIC/WACC0.62
WACC7.41%
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 Current ratio of 1.57. This is in the better half of the industry: GHG outperforms 75.94% of its industry peers.
GHG has a Quick 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.
The Quick ratio of GHG (1.57) is better than 77.44% of its industry peers.
| 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%.
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.
The Revenue for GHG has decreased by -17.44% in the past year. This is quite bad
Measured over the past years, GHG shows a small growth in Revenue. The Revenue has been growing by 4.24% on average per year.
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.
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.
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
GHG is valuated correctly with a Price/Earnings ratio of 14.07.
Based on the Price/Earnings ratio, GHG is valued cheaper than 83.46% of the companies in the same industry.
When comparing the Price/Earnings ratio of GHG to the average of the S&P500 Index (26.52), we can say GHG is valued slightly cheaper.
With a Price/Forward Earnings ratio of 4.23, the valuation of GHG can be described as very cheap.
Based on the Price/Forward Earnings ratio, GHG is valued cheaper than 98.50% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of GHG to the average of the S&P500 Index (22.25), we can say GHG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.07 | ||
| Fwd PE | 4.23 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GHG is valued cheaply inside the industry as 99.25% 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 98.50% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.24 | ||
| EV/EBITDA | 0.77 |
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.
A more expensive valuation may be justified as GHG's earnings are expected to grow with 23.34% in the coming years.
PEG (NY)0.54
PEG (5Y)N/A
EPS Next 2Y23.34%
EPS Next 3YN/A
5. Dividend
5.1 Amount
GHG has a Yearly Dividend Yield of 4.15%, which is a nice return.
Compared to an average industry Dividend Yield of 3.85, GHG pays a better dividend. On top of this GHG pays more dividend than 89.47% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, GHG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.15% |
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 (6/6/2025, 8:04:00 PM)
2.11
+0.06 (+2.93%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners12.77%
Inst Owner Change-3.43%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap214.26M
Analysts45
Price Target3.67 (73.93%)
Short Float %0.07%
Short Ratio0.28
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.15% |
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 | 14.07 | ||
| Fwd PE | 4.23 | ||
| P/S | 1.15 | ||
| P/FCF | 5.24 | ||
| P/OCF | 4.12 | ||
| P/B | 1.05 | ||
| P/tB | 1.2 | ||
| EV/EBITDA | 0.77 |
EPS(TTM)0.15
EY7.11%
EPS(NY)0.5
Fwd EY23.66%
FCF(TTM)0.4
FCFY19.09%
OCF(TTM)0.51
OCFY24.26%
SpS1.84
BVpS2
TBVpS1.76
PEG (NY)0.54
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 | 0.76 |
F-Score4
WACC7.41%
ROIC/WACC0.62
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%