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GreenTree Hospitality Group

GHG
53
Travel Lodging · Consumer Cyclical
Price
$1.11
+0.01 (+0.91%)
Market Cap
$112.1M
Exchange
New York Stock Exchange
Winston Score
53
Winston is curious
Mixed quality — meaningful strengths and weaknesses.
Data as of Aug 23, 2026 · filings through Mar 31, 2026
How the score breaks down
Quality
Mixed
Growth
Weak
Cash Flow
Good
Stability
Exceptional
Valuation
Exceptional
Dividends
Good

Share count falling — buybacks

1.9% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 103.0M (2021) → 101.1M (2025)

Winston Score History

The full picture

GreenTree Hospitality Group is a Chinese hotel company that owns and operates a network of budget and mid-scale hotels across China. Its brands include GreenTree Inns and Vatica Hotels, which serve everyday travelers looking for affordable, clean accommodations. The company is one of China's larger economy hotel chains, competing in a crowded domestic lodging market.

GreenTree makes most of its money through a franchise model, collecting fees from hotel owners who operate under its brand names rather than owning most properties itself. This keeps costs relatively low but also limits how much control the company has over guest experience. GreenTree operates almost entirely within China, and with a market cap of roughly $0.1 billion, it is a small player even by regional standards. The main risk the company faces is intense competition from larger Chinese hotel groups like Huazhu and BTG Hotels, along with slow domestic travel demand and ongoing pressure on room rates.

Score breakdown

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Quality

Profit per sale
Gross Margin
30.3%
Modest — 30.3% gross margin
Profit after running costs
Operating Margin
12.6%
Healthy — 12.6% operating margin
Return on the money invested
ROCE
6.8%
Weak — 6.8% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales growth
Sales YoY
-19.1%
Shrinking sales (-19.1% YoY)
Profit growth
EPS YoY
-20.0%
Earnings shrinking (-20.0% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

How steady the profit is
EPS Consistency
4/8 quarters
Earnings inconsistent quarter-to-quarter

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Cash Flow

Profit that turns into cash
Cash Conversion
328%
Turns 328% of profit into real cash
Spare cash per sale
FCF Margin
-0.2%
Burning cash (-0.2%)

Free cash flow is negative. They are burning cash, not generating it.

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Stability

What it owes vs what it owns
Debt / Equity
0.19
Conservative — low debt load (0.19)
Covers its interest
Interest Cover
22.76x
Comfortably covers interest (22.8x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

Price vs profit
P/E Ratio (TTM)
6.2x
Attractive valuation — P/E 6.2

P/E under 10. The price tag is small relative to last year's profit.

Cheaper or dearer next year
P/E vs Forward
+5.0
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (6.2 → 1.3)

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Dividends

Dividend
Dividend Yield
5.45%
Healthy income — 5.45% yield

Generous yield. Worth checking whether the payout is sustainable.

Dividend record
Dividend Growth
N/A
Data not available

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