Greentree Hospitality Group (GHG) AI Stock Analysis

• Market Cap: $203.05M
• Dividend Yield: 2.8%
• Average Volume (3M): 59.82K
• Price to Earnings (P/E): 12.8
• Beta (1Y): 0.74
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 2,339
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Travel Lodging
• EPS (TTM): 0.28
• Shares Outstanding: 66,780,610
• 10 Day Avg. Volume: 50,718
• 30 Day Avg. Volume: 59,818
• PEG Ratio: -0.29
• Price to Book (P/B): 1.30
• Price to Sales (P/S): 1.41
• P/FCF Ratio: 6.46
• Enterprise Value/Market Cap: 1.10
• Enterprise Value/Revenue: 0.18
• Enterprise Value/Gross Profit: 0.49
• Enterprise Value/Ebitda: 1.00
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: $2.00 ▲(9.89% Upside)

Greentree Hospitality Group's overall stock score is primarily influenced by its financial performance and valuation. The company faces challenges in revenue growth and cash flow generation, but operational efficiency and a reasonable valuation provide some support. Technical analysis suggests a cautious outlook, with the stock trading below key moving averages.

Positive Factors

Strategic Expansion

Despite revenue challenges, GHG's strategic expansion with new hotel openings and a robust development pipeline positions it for long-term growth and market presence.

Cash Flow Generation

Strong cash flow generation relative to net income suggests GHG's ability to sustain operations and invest in growth, supporting long-term financial health.

Balanced Capital Structure

A balanced capital structure with a moderate Debt-to-Equity ratio enhances GHG's financial stability and flexibility, supporting sustainable growth and risk management.

Negative Factors

Revenue Decline

Significant revenue decline indicates operational challenges and market pressures, potentially impacting GHG's ability to maintain profitability and growth.

Decreasing Free Cash Flow

A decline in free cash flow suggests challenges in maintaining liquidity and funding operations, which could constrain GHG's ability to invest in future growth.

Declining Profit Margins

Low and declining profit margins indicate difficulties in cost management and pricing power, potentially affecting GHG's long-term profitability and competitive position.

Greentree Hospitality Group Business Overview & Revenue Model

Company Description

GreenTree 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 Money

Greentree Hospitality Group generates revenue primarily through hotel room bookings and management fees from its franchisees. The company operates on a franchise model, allowing independent hotel owners to use its brand and benefit from its marketing and operational support in exchange for a percentage of their revenue. Additionally, GHG earns income from ancillary services, such as food and beverage sales, event hosting, and partnerships with travel agencies and corporate clients for bulk bookings. The company also invests in expanding its property portfolio, increasing its revenue potential through new openings and strategic partnerships within the hospitality industry.

Greentree Hospitality Group Financial Statement Overview

Summary

Greentree Hospitality Group faces challenges in revenue growth and cash flow generation, with increased leverage posing potential risks. However, the company demonstrates operational efficiency through positive EBIT and EBITDA margins and improved return on equity.

Income Statement

The income statement shows a mixed performance. The company has experienced a decline in revenue growth, with a negative growth rate of -2.9% in the TTM period. Gross profit margin and net profit margin have decreased over time, indicating pressure on profitability. However, the company has managed to maintain positive EBIT and EBITDA margins, suggesting operational efficiency. The decline in revenue and margins is a concern, but the ability to generate positive EBIT and EBITDA is a positive sign.

Balance Sheet

The balance sheet reflects a moderate level of financial stability. The debt-to-equity ratio has increased over time, reaching 1.07 in the TTM period, indicating higher leverage. Return on equity has improved to 12.06%, showing better utilization of equity. However, the equity ratio remains relatively low, suggesting a higher reliance on debt financing. The increase in leverage poses a risk, but the improvement in ROE is a positive aspect.

Cash Flow

Cash flow analysis reveals challenges in free cash flow growth, with a decline of -12.0% in the TTM period. The operating cash flow to net income ratio is relatively low at 0.27, indicating limited cash conversion efficiency. The free cash flow to net income ratio is 0.67, showing some ability to generate cash from operations. The decline in free cash flow growth and low cash conversion ratios are concerns, but the company still maintains positive cash flow generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.25B	1.34B	1.63B	945.14M	1.97B	930.01M
Gross Profit	460.10M	520.85M	679.82M	351.12M	554.77M	537.49M
EBITDA	224.97M	319.26M	511.30M	-350.84M	330.12M	385.12M
Net Income	190.88M	110.00M	269.32M	-425.15M	88.71M	261.34M
Balance Sheet
Total Assets	5.19B	4.95B	5.07B	5.10B	4.73B	4.09B
Cash, Cash Equivalents and Short-Term Investments	1.67B	1.49B	1.21B	873.49M	1.01B	1.16B
Total Debt	1.77B	1.71B	1.83B	2.25B	708.00M	150.00M
Total Liabilities	3.50B	3.45B	3.59B	3.61B	2.60B	1.85B
Stockholders Equity	1.66B	1.46B	1.44B	1.61B	1.95B	2.10B
Cash Flow
Free Cash Flow	214.48M	293.76M	366.55M	212.59M	-200.29M	184.49M
Operating Cash Flow	318.30M	373.38M	455.05M	281.71M	360.98M	297.30M
Investing Cash Flow	51.71M	345.39M	-93.71M	438.96M	-928.39M	-115.60M
Financing Cash Flow	-71.91M	10.53M	-303.73M	-341.90M	240.33M	117.53M

Greentree Hospitality Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.82
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 1.82 is below the 20-day moving average (MA) of 1.89, below the 50-day MA of 1.97, and below the 200-day MA of 2.14, indicating a bearish trend. The MACD of -0.04 indicates Negative momentum. The RSI at 40.30 is Neutral, neither overbought nor oversold. The STOCH value of 49.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GHG.

Greentree Hospitality Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ATAT	75 Outperform	$5.59B	27.64	45.97%	2.30%	35.65%	24.81%
HTHT	74 Outperform	$14.12B	27.05	32.62%	3.76%	6.06%	8.01%
CHH	65 Neutral	$4.17B	11.06	1418.13%	1.25%	2.76%	56.02%
WH	65 Neutral	$5.52B	16.81	57.98%	2.23%	3.38%	38.04%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
GHG	61 Neutral	$203.05M	12.76	―	2.80%	―	―
SHCO	44 Neutral	$1.72B	―	―	―	8.09%	43.02%

Greentree Hospitality Group Corporate Events

GreenTree Hospitality Group Reports Decline in First Half 2025 Revenues

GreenTree Hospitality Group Ltd. reported its financial results for the first half of 2025, revealing a 14.2% decline in total revenues year-over-year, amounting to RMB585.1 million. The decrease in revenue was attributed to a reduction in hotel and restaurant operations, with hotel revenues dropping by 9.5% and restaurant revenues by 31.6%. Despite these challenges, the company managed to open 138 new hotels, maintaining a pipeline of 1,245 hotels under development, which indicates a strategic expansion effort amidst the declining performance.