Greentree Hospitality Intrinsic Value Calculation – GREENTREE HOSPITALITY Reports Earnings for FY2023 Q3, as of September 30 2023
December 11, 2023

🌥️Earnings Overview
On November 24 2023, GREENTREE HOSPITALITY ($NYSE:GHG) revealed its financial results for the third quarter of FY2023 ending September 30 2023, showing total revenue of CNY 399.7 million, a 13.3% decrease from the corresponding period a year prior. Net income for the quarter was reported to be CNY -60.4 million, in comparison to CNY 117.6 million during the same quarter in the prior year.
Price History
On Friday, GREENTREE HOSPITALITY reported its earnings for the third quarter of fiscal year 2023, as of September 30 2023. The report showed that the stock opened at $4.1 and closed at $4.0, representing a 2.4% drop from the previous closing price of $4.1. Despite the decline in net income, GREENTREE HOSPITALITY still managed to meet analysts’ expectations with regards to its performance. The company attributed its bottom line performance to its focus on cost-cutting initiatives and investments in new technology solutions.
Going forward, GREENTREE HOSPITALITY is hoping to build on its current momentum and leverage its existing strengths to increase profitability. The company is confident that its focus on customer satisfaction, innovation, and operational efficiency will help it to achieve sustainable growth in the near future. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Greentree Hospitality. More…
| Total Revenues | Net Income | Net Margin |
| 790.12 | -1.09k | -116.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Greentree Hospitality. More…
| Operations | Investing | Financing |
| 121.85 | 717.87 | -159.77 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Greentree Hospitality. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 5.24k | 3.7k | 14.77 |
Key Ratios Snapshot
Some of the financial key ratios for Greentree Hospitality are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -5.3% | -34.0% | -160.0% |
| FCF Margin | ROE | ROA |
| 8.1% | -54.4% | -15.1% |
Analysis – Greentree Hospitality Intrinsic Value Calculation
At GoodWhale, we have conducted an analysis of GREENTREE HOSPITALITY‘s wellbeing. After careful assessment of various factors, our proprietary Valuation Line has calculated the intrinsic value of GREENTREE HOSPITALITY’s share to be around $5.3. However, right now the stock is trading at $4.0 which is 24.0% lower than its intrinsic value. This implies that GREENTREE HOSPITALITY is currently undervalued and investors can benefit from buying the stock at its current price. More…

Peers
GreenTree Hospitality Group Ltd is one of the leading companies in the hospitality industry, competing with Tibet Tourism Co Ltd, FX Hotels Group Inc, and Asian Hotels (North) Ltd. All four companies strive to be the best in the industry in terms of providing excellent services and customer satisfaction. The competition between these four companies is fierce and ongoing, and each company works to bring out the best in their products and services.
– Tibet Tourism Co Ltd ($SHSE:600749)
Tibet Tourism Co Ltd is a company based in Tibet that specializes in providing tourism services to visitors. As of 2023, the company has a market capitalization of 2.95 billion, making it one of the largest companies in the region. The Return on Equity (ROE) for this company is -1.75%, which indicates that it is not generating sufficient profits to cover its costs. This reflects the challenges that the company is facing in its core business of providing tourism services.
– FX Hotels Group Inc ($TPEX:2724)
FX Hotels Group Inc is a hotel group that operates a variety of hotel brands across the world. As of 2023, the company’s market cap is 820.27M, which reflects the value of the company’s assets and operations. Additionally, the company has a Return on Equity of -8.65%, indicating that the company is not generating sufficient profits to cover its costs and to generate positive returns for its shareholders. This is likely due to increasing operating expenses and declining revenue as a result of pandemic-related economic pressures.
– Asian Hotels (North) Ltd ($BSE:500023)
Asian Hotels (North) Ltd is a hospitality company that operates hotels and resorts in the North of India. It has a market cap of 1.56B as of 2023, reflecting the company’s strong market presence and share price performance. However, its Return on Equity (ROE) of -9.12% is a matter of concern, indicating that the company is not generating sufficient profits to cover its total equity. This may raise red flags for potential investors and needs to be addressed by the company to ensure long-term sustainability.
Summary
GREENTREE HOSPITALITY reported its earnings results for FY2023 Q3 on November 24 2023, with total revenue of CNY 399.7 million, a decline of 13.3% year-over-year, and a net loss of CNY -60.4 million. This marks a major decrease compared to the prior year’s net income of CNY 117.6 million. Investors should review GREENTREE HOSPITALITY’s financials and fundamentals to determine if the company is worth investing in. They should examine the company’s competitive landscape, its management team, and its growth prospects, as well as consider potential risks when making a decision.
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