GreenTree Hospitality Group Ltd. American depositary shares each representing one Class A ordinary share (GHG)

FairStock Score: 50/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

GreenTree is a Chinese lodging and restaurant operator, with franchised and leased hotels, food manufacturing and wholesale. It is a small consumer-cyclical business, and the numbers show why Mr. Market is pessimistic. At the close on 2026-10-13, the ADS trades at $0.98, giving a market cap of $127.9 million. FairStock's P/B is 0.41, and its Graham Number is $4.26, implying a 77.09% margin of safety. A Piotroski F-Score of 7/9 also suggests some accounting improvement. The dividend yield is 5.83%, and the FairStock Score is 50/100, a mixed signal. Yet I see no durable moat: revenue growth was -14.95%, profit growth -7.16%, ROE 1.85%, and ROCE 2.03%. The latest quarter (fiscal Q2 2026) showed revenue of $235.1 million and net income of $20.8 million, an 8.84% margin, so it is still profitable on paper. But trailing free cash flow is -$23.3 million, a -18.2% FCF yield, and the Altman Z-Score is 0.26, which points to financial distress. D/E is 0.91. FairStock's P/E of 19.52 is not cheap for shrinking earnings. EV/EBITDA is -0.58, reflecting negative operating profitability. The Lynch category is none because only 0 years of filed results are available and three are needed. Graham might be tempted by the asset discount; Buffett would ask whether the business can earn good returns. With negative cash flow and declining sales, the low price alone is not enough. I would watch for cash generation, stable revenue, and better returns before calling this a sound value.

In plain English: GreenTree Hospitality runs hotels and restaurants in China and also sells prepared and frozen foods. In the latest reported quarter (fiscal Q2 2026), it had revenue of $235.1 million and net income of $20.8 million, but sales and profits have been shrinking and the company spent more cash than it brought in. The shares at $0.98 on 2026-10-13 look cheap compared with the company’s accounting value, but the weak cash flow and low returns make that cheapness uncertain.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer