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GreenTree Hospitality GroupGHG +0.88%51 Return-on-Tangible-Equity is 4.17% as of Mar. 2026, which is 80% below its 10-year median of 20.70. GuruFocus rates GHG with a GF Score™ of 51/100 and a GF Value™ of $2.46 (Possible Value Trap). The stock has 3 warning signs investors should review. Among 797 Travel & Leisure companies, GreenTree Hospitality Group ranks better than 60.35% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. GreenTree Hospitality Group's annualized net income for the quarter that ended in Mar. 2026 was $9.0 Mil. GreenTree Hospitality Group's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $216.0 Mil. Therefore, GreenTree Hospitality Group's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 4.17%.
The historical rank and industry rank for GreenTree Hospitality Group's Return-on-Tangible-Equity or its related term are showing as below:
GHG'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -32.62 Med: 20.7 Max: 32.26
Current: 11.66
During the past 11 years, GreenTree Hospitality Group's highest Return-on-Tangible-Equity was 32.26%. The lowest was -32.62%. And the median was 20.70%.
GHG's Return-on-Tangible-Equity is ranked better than 60.35% of 797
companies
in the Travel & Leisure industry
Industry Median: 7.69
vs GHG: 11.66
GreenTree Hospitality Group (NYSE:GHG) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
GreenTree Hospitality Group Return-on-Tangible-Equity Related Terms
GreenTree Hospitality Group Return-on-Tangible-Equity Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
GreenTree Hospitality Group Return-on-Tangible-Equity Chart
GHG vs PHSE, INTG, PRSI: Return-on-Tangible-Equity Comparison
For the Lodging subindustry, GreenTree Hospitality Group's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
GreenTree Hospitality Group Return-on-Tangible-Equity vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, GreenTree Hospitality Group's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where GreenTree Hospitality Group's Return-on-Tangible-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 4.17% mean?
GreenTree Hospitality Group (GHG) has a Return-on-Tangible-Equity of 4.17% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on GreenTree Hospitality Group and its competitors. This is 80% below median its historical median of 20.70. According to the industry distribution chart, GreenTree Hospitality Group ranks #316 out of 797 companies in the Travel & Leisure industry, placing it in the top 39.6%.
Is GreenTree Hospitality Group's Return-on-Tangible-Equity too high?
GreenTree Hospitality Group's current Return-on-Tangible-Equity of 4.17% is 80% below median its 10-year median of 20.70. The Travel & Leisure industry median Return-on-Tangible-Equity is 7.69. GreenTree Hospitality Group's value of 4.17% is 45.8% below this industry median. Based on the distribution chart, GreenTree Hospitality Group ranks #316 out of 797 companies in the Travel & Leisure industry, which is above the industry midpoint. Overall, GreenTree Hospitality Group has a GF Score™ of 51/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does GreenTree Hospitality Group's Return-on-Tangible-Equity compare to PHSE and INTG?
According to the Travel & Leisure industry distribution chart, GreenTree Hospitality Group ranks #316 out of 797 companies for Return-on-Tangible-Equity. This puts GreenTree Hospitality Group in the upper half of its industry. The industry median Return-on-Tangible-Equity is 7.69. GreenTree Hospitality Group's value of 4.17% is 45.8% below this benchmark. While the company's 10-year median is 20.70 vs. the industry median of 7.69, GreenTree Hospitality Group has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Travel & Leisure company?
The median Return-on-Tangible-Equity among Travel & Leisure companies is 7.69, based on 797 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. GreenTree Hospitality Group's current Return-on-Tangible-Equity of 4.17% is 45.8% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on GreenTree Hospitality Group and its competitors. For the Travel & Leisure industry, the median Return-on-Tangible-Equity is 7.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. GreenTree Hospitality Group's current Return-on-Tangible-Equity is 4.17%, which is 80% below median its own 10-year median of 20.70. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is GreenTree Hospitality Group stock overvalued right now?
Based on GuruFocus' analysis, GreenTree Hospitality Group (GHG) is currently considered Possible Value Trap. The stock's GF Value™ is $2.46, compared to a current price of $1.14 — trading 53.7% below its estimated fair value. The current Return-on-Tangible-Equity is 4.17%, which is 80% below median its 10-year median of 20.70 and 45.8% below the Travel & Leisure industry median of 7.69. GreenTree Hospitality Group's overall GF Score™ is 51/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For GreenTree Hospitality Group (GHG), the current Return-on-Tangible-Equity is 4.17% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is GreenTree Hospitality Group (GHG) Overvalued in 2026?
Based on GuruFocus' analysis, GreenTree Hospitality Group stock appears to be undervalued.
The current stock price of $1.14 is trading 53.7% below its estimated GF Value™ of $2.46.
GuruFocus considers GreenTree Hospitality Group to be Possible Value Trap.
Key valuation signals for GHG:
Return-on-Tangible-Equity: 4.17% (80% below median its 10-year median of 20.70)
GF Value™: $2.46 vs. price of $1.14 (53.7% below fair value)
Industry Position: 45.8% below the Travel & Leisure median (#316 of 797)
No single metric tells the full story. See the GHG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
GreenTree Hospitality Group Ltd is a franchised hotel operator in China as franchised and managed hotels represent almost all the hotels in its hotel network. The company operates its hotels under GreenTree Inns, GreenTree Eastern, Gme, Gya and VX, GreenTree Alliance, Vatica, and others. The Group reports its financial results in two operating segments: Hotel Business, which consists of leased-and-operated hotels and franchised-and-managed hotels operating under the hotel related brand, and Restaurant Business, which consists of leased-and-operated restaurants and franchised-and-managed restaurants operating under the brands of Da Niang and Bellagio. It derives maximum revenue from Hotel Business segment. It operates solely in China and generates all its revenue from China itself.
51GF Score
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