GreenTree Hospitality Group Ltd.
GreenTree Hospitality Group Ltd. Fundamental Analysis
GreenTree Hospitality Group Ltd. (GHG) shows moderate financial fundamentals with a PE ratio of 5.07, profit margin of 15.58%, and ROE of 11.48%. The company generates $1.2B in annual revenue with weak year-over-year growth of -17.44%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 24.9/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze GHG's fundamental strength across five key dimensions:
Efficiency Score
WeakGHG struggles to generate sufficient returns from assets.
Valuation Score
ExcellentGHG trades at attractive valuation levels.
Growth Score
WeakGHG faces weak or negative growth trends.
Financial Health Score
ModerateGHG shows balanced financial health with some risks.
Profitability Score
ModerateGHG maintains healthy but balanced margins.
Key Financial Metrics
Is GHG Expensive or Cheap?
P/E Ratio
GHG trades at 5.07 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, GHG's PEG of -0.28 indicates potential undervaluation.
Price to Book
The market values GreenTree Hospitality Group Ltd. at 0.55 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 4.18 times EBITDA. This is generally considered low.
How Well Does GHG Make Money?
Net Profit Margin
For every $100 in sales, GreenTree Hospitality Group Ltd. keeps $15.58 as profit after all expenses.
Operating Margin
Core operations generate 5.06 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $11.48 in profit for every $100 of shareholder equity.
ROA
GreenTree Hospitality Group Ltd. generates $3.59 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
GreenTree Hospitality Group Ltd. generates strong operating cash flow of $324.87M, reflecting robust business health.
Free Cash Flow
GreenTree Hospitality Group Ltd. produces free cash flow of $64.00M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.63 in free cash annually.
FCF Yield
GHG converts 6.74% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
5.07
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.28
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.55
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.79
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.000
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.64
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.11
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.02
vs 25 benchmark
How GHG Stacks Against Its Sector Peers
| Metric | GHG Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 5.07 | 24.97 | Better (Cheaper) |
| ROE | 11.48% | 1167.00% | Weak |
| Net Margin | 15.58% | 673.00% | Weak |
| Debt/Equity | 1.00 | 0.66 | Weak (High Leverage) |
| Current Ratio | 1.64 | 4.01 | Neutral |
| ROA | 3.59% | -8477.00% (disorted) | Weak |
GHG outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews GreenTree Hospitality Group Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
23.70%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
-75.02%
Industry Style: Cyclical, Growth, Discretionary
DecliningFCF CAGR
-26.96%
Industry Style: Cyclical, Growth, Discretionary
Declining