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Greentree Hospitality Group Ltd (GHG)
NYSE:GHG
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Greentree Hospitality Group
(NYSE:GHG)
66Neutral
Greentree Hospitality Group (GHG) vs. S&P 500 (SPY)
Market Cap
$233.55M
Dividend Yield3.85%
Average Volume (3M)24.28K
Price to Earnings (P/E)8.5
Beta (1Y)0.67
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees2,523
SectorConsumer Cyclical
Sector Strength60
IndustryTravel Lodging
Share Statistics
EPS (TTM)0.27
Shares Outstanding66,780,610
10 Day Avg. Volume18,943
30 Day Avg. Volume24,280
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)5.05
Price to Cash Flow (P/CF)-36.60
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Greentree Hospitality Group Business Overview & Revenue Model
Company DescriptionGreenTree Hospitality Group Ltd., through its subsidiaries, develops leased-and-operated, and franchised-and-managed hotels under the GreenTree brand in the People's Republic of China. As of December 31, 2021, it operated 66 leased-and-operated hotels with 7,064 rooms; and had franchised-and-managed hotels network consisting of 4,593 hotels with 330,089 rooms covering 367 cities in China, and an additional 1,225 hotels with 91,887 rooms that were contracted for or under development. The company was founded in 2004 and is headquartered in Shanghai, the People's Republic of China. GreenTree Hospitality Group Ltd. is a subsidiary of GreenTree Inns Hotel Management Group, Inc.
How the Company Makes MoneyGreentree Hospitality Group makes money primarily through the operation and management of its hotel properties. The company generates revenue from room bookings, which includes overnight stays, extended stays, and group bookings. Additionally, GHG earns income from ancillary services such as food and beverage sales, conference and event hosting, and loyalty programs. The company also benefits from franchise fees and management contracts, where it leverages its brand and operational expertise to manage properties owned by third parties. Strategic partnerships with online travel agencies and other distribution channels further enhance its revenue streams by increasing its market reach and occupancy rates.
Greentree Hospitality Group Financial Statement Overview
Summary
Greentree Hospitality Group demonstrates solid profitability and operational efficiency, though revenue has declined. The balance sheet is stable with moderate leverage and good equity levels. Cash flow metrics show robust cash generation capabilities, although free cash flow has decreased. Overall, the company is financially stable but needs to address revenue growth challenges.Income Statement
The gross profit margin stands at 41.65% and the net profit margin at 11.01% for TTM, showcasing decent profitability. However, there is a significant decline in revenue from the previous year, with a revenue growth rate of -13.29%. EBIT and EBITDA margins are 21.97% and 30.72% respectively, indicating good operational efficiency amidst falling revenue.65
Positive
Balance Sheet
The debt-to-equity ratio is 1.12, indicating moderate leverage. The equity ratio is 30.52%, showing a healthy level of equity financing. ROE is 9.99%, suggesting reasonable returns on equity. Overall, the balance sheet reflects stability with manageable debt levels.70
Positive
Cash Flow
The operating cash flow to net income ratio is 1.84, indicating strong cash generation relative to income. The free cash flow to net income ratio is 1.55, reflecting solid free cash flow generation. However, the free cash flow has decreased by 34.10% compared to the previous year, highlighting a potential area of concern.75
Positive
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 1.41B | 1.63B | 945.14M | 1.21B | 930.01M | 1.09B | Gross Profit |
| 587.88M | 679.82M | 351.12M | 554.77M | 537.49M | 752.97M | EBIT |
| 310.01M | 335.65M | -437.75M | 241.72M | 319.25M | 504.55M | EBITDA |
| 433.51M | 511.30M | -350.84M | 330.12M | 385.12M | 548.37M | Net Income Common Stockholders |
| 155.38M | 269.32M | -407.64M | 211.60M | 261.34M | 442.72M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 1.17B | 1.23B | 873.49M | 1.01B | 1.16B | 964.13M | Total Assets |
| 0.00 | 5.07B | 5.10B | 4.73B | 4.09B | 3.82B | Total Debt |
| 0.00 | 1.83B | 2.06B | 708.00M | 150.00M | 60.00M | Net Debt |
| 1.17B | 1.07B | 1.39B | 409.57M | -461.36M | -259.85M | Total Liabilities |
| 0.00 | 3.59B | 3.61B | 2.60B | 1.85B | 1.86B | Stockholders Equity |
| 1.03B | 1.44B | 1.45B | 1.95B | 2.10B | 1.80B |
| Cash Flow | Free Cash Flow | ||||
| 241.56M | 366.55M | 212.59M | -200.29M | 184.49M | 413.73M | Operating Cash Flow |
| 286.29M | 455.05M | 281.71M | 360.98M | 297.30M | 513.94M | Investing Cash Flow |
| 243.77M | -93.71M | 438.96M | -928.39M | -115.60M | -1.22B | Financing Cash Flow |
| 110.84M | -303.73M | -341.90M | 255.63M | 117.53M | -212.23M |
Greentree Hospitality Group Technical Analysis
Negative
2.24
Price Trends
2.64
Negative
2.61
Negative
2.62
Negative
Market Momentum
-0.05
Positive
40.50
Neutral
13.98
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GHG, the sentiment is Negative. The current price of 2.24 is below the 20-day moving average (MA) of 2.50, below the 50-day MA of 2.64, and below the 200-day MA of 2.62, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 40.50 is Neutral, neither overbought nor oversold. The STOCH value of 13.98 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GHG.
Greentree Hospitality Group Risk Analysis
Greentree Hospitality Group disclosed 76 risk factors in its most recent earnings report. Greentree Hospitality Group reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Greentree Hospitality Group Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $48.91B | 33.25 | -41.19% | 0.29% | 9.17% | 42.78% | |
72 Outperform | $6.17B | 22.06 | 41.40% | 1.95% | ― | 6.40% | |
66 Neutral | $233.55M | 8.54 | 12.76% | 3.85% | ― | ― | |
64 Neutral | $10.12B | 8.38 | 36.45% | 0.57% | -6.41% | 511.40% | |
62 Neutral | $15.25B | 25.95 | -27.16% | 1.58% | 6.34% | -11.99% | |
59 Neutral | $10.97B | 9.83 | -1.56% | 4.06% | 1.31% | -16.49% | |
55 Neutral | $58.75B | 25.62 | -144.82% | 1.18% | 5.85% | -18.43% |
* Consumer Cyclical Sector Average
Performance Comparison
GHG
Greentree Hospitality Group
2.24
-0.77
-25.58%
H
Hyatt Hotels
104.27
-50.99
-32.84%
IHG
Intercontinental Hotels Group
96.02
-3.27
-3.29%
MAR
Marriott International
211.12
-40.70
-16.16%
HLT
Hilton Worldwide Holdings
201.28
-7.77
-3.72%
WH
Wyndham Hotels & Resorts
78.47
6.79
9.47%
Greentree Hospitality Group Earnings Call Summary
Earnings Call Date: Mar 13, 2025 | % Change Since: -9.68% | Next Earnings Date: May 23, 2025
Earnings Call Sentiment Negative
The earnings call for GreenTree Hospitality Group highlighted some positive aspects such as the stabilization and strategic transformation of the restaurant business, membership growth, and cash flow improvement. However, these were offset by significant declines in hotel revenues, RevPAR, and net income, indicating challenges in the hospitality segment. The sentiment of the call was more negative due to these financial setbacks.Highlights
Positive Restaurant Business Performance
The restaurant business' net income remained positive for a second consecutive quarter, with stable consumer traffic stores accounting for 55.5% of the store count up from 44.6% a year ago. The strategic transformation resulted in F&M restaurants accounting for 87.9% of the total at the end of the quarter compared to 74.8% a year ago.
Membership Growth
Individual memberships grew to 100 million, up from 88 million a year ago, and corporate membership grew to 2.1 million from 2 million a year ago.
Cash and Cash Equivalents Increase
As of September 30, 2024, the company had total cash and cash equivalents of RMB 1,883.9 million compared to RMB 1,737.2 million as of June 30, 2024.
Expansion in Hotel Segments
Continued expansion in the mid- to upscale hotel segment with 527 hotels, accounting for 12.1% of the total portfolio.
Lowlights
Decrease in Hotel Revenues
Total hotel revenues decreased 15.4% to RMB 286.9 million compared to the third quarter of 2023, primarily due to a 13.6% year-over-year decrease in RevPAR and the closure of some hotels.
Decline in RevPAR and ADR
RevPAR for L&O hotels decreased by 7.5% to RMB 196, and ADR for L&O hotels decreased by 3.6% to RMB 258. Occupancy rates for both L&O and F&M hotels decreased as well.
Significant Net Income Decrease
Net income decreased by 44.4% to RMB 65.2 million with a margin of 18.3%. Adjusted EBITDA decreased 32.1% with a margin of 34.3%.
Decline in Restaurant ADS
Restaurant ADS was RMB 4,891, a decrease of 25.6% year-over-year.
Company Guidance
In the third quarter of 2024 earnings call for GreenTree Hospitality Group (GHG), the company provided guidance indicating a challenging environment with a decrease in several key metrics. Hotel RevPAR declined by 13.6% year-over-year to RMB 135, while restaurant ADS dropped by 25.6% to RMB 4,891. Total revenues fell 22.5% to RMB 357 million, with hotel revenues specifically decreasing 15.4% to RMB 286.9 million. Net income was RMB 65.2 million, marking a 44.4% reduction with a margin of 18.3%. Adjusted EBITDA non-GAAP decreased 32.1% to RMB 122.5 million, with the company forecasting a full-year revenue decrease of approximately 8% compared to 2023. Despite these challenges, the company noted improvements in its restaurant business, with profitable operations for the second consecutive quarter and a strategic shift in hotel and restaurant operations to improve future performance.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.