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GreenTree Hospitality GroupFRA:GT1A -1.53%55 ROA % is 1.31% as of Mar. 2026, which is 78% below its 10-year median of 5.89. GuruFocus rates FRA:GT1A with a GF Score™ of 55/100 and a GF Value™ of €2.08 (Possible Value Trap). The stock has 3 warning signs investors should review. Among 857 Travel & Leisure companies, GreenTree Hospitality Group ranks better than 59.28% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. GreenTree Hospitality Group's annualizedNet Income for the quarter that ended in Mar. 2026 was €7.8 Mil.
GreenTree Hospitality Group's average Total Assets over the quarter that ended in Mar. 2026 was €594.8 Mil. Therefore, GreenTree Hospitality Group's annualized ROA % for the quarter that ended in Mar. 2026 was 1.31%.
The historical rank and industry rank for GreenTree Hospitality Group's ROA % or its related term are showing as below:
FRA:GT1A'
s ROA % Range Over the Past 10 Years
Min: -7.88 Med: 5.89 Max: 15.71
Current: 3.51
During the past 11 years, GreenTree Hospitality Group's highest ROA % was 15.71%. The lowest was -7.88%. And the median was 5.89%.
FRA:GT1A's ROA % is ranked better than 59.28% of 857
companies
in the Travel & Leisure industry
Industry Median: 2.4
vs FRA:GT1A: 3.51
GreenTree Hospitality Group (FRA:GT1A) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue 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.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
* 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.
For the Lodging subindustry, GreenTree Hospitality Group's ROA %, along with its competitors' market caps and ROA % 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 ROA % vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, GreenTree Hospitality Group's ROA % distribution charts can be found below:
* The bar in red indicates where GreenTree Hospitality Group's ROA % 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 ROA %, the net income of the last fiscal year and the average total assets 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.
ROA % is displayed in the 30-year financial page.
GreenTree Hospitality Group (FRA:GT1A) has a ROA % of 1.31% as of Mar. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on GreenTree Hospitality Group and its competitors. This is 78% below median its historical median of 5.89. According to the industry distribution chart, GreenTree Hospitality Group ranks #349 out of 857 companies in the Travel & Leisure industry, placing it in the top 40.7%.
Is GreenTree Hospitality Group's ROA % too high?
GreenTree Hospitality Group's current ROA % of 1.31% is 78% below median its 10-year median of 5.89. The Travel & Leisure industry median ROA % is 2.40. GreenTree Hospitality Group's value of 1.31% is 45.4% below this industry median. Based on the distribution chart, GreenTree Hospitality Group ranks #349 out of 857 companies in the Travel & Leisure industry, which is above the industry midpoint. Overall, GreenTree Hospitality Group has a GF Score™ of 55/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does GreenTree Hospitality Group's ROA % compare to PHSE and INTG?
According to the Travel & Leisure industry distribution chart, GreenTree Hospitality Group ranks #349 out of 857 companies for ROA %. This puts GreenTree Hospitality Group in the upper half of its industry. The industry median ROA % is 2.40. GreenTree Hospitality Group's value of 1.31% is 45.4% below this benchmark. While the company's 10-year median is 5.89 vs. the industry median of 2.40, 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 ROA % for a Travel & Leisure company?
The median ROA % among Travel & Leisure companies is 2.40, based on 857 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. GreenTree Hospitality Group's current ROA % of 1.31% is 45.4% 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 ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on GreenTree Hospitality Group and its competitors. For the Travel & Leisure industry, the median ROA % is 2.40 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. GreenTree Hospitality Group's current ROA % is 1.31%, which is 78% below median its own 10-year median of 5.89. 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 (FRA:GT1A) is currently considered Possible Value Trap. The stock's GF Value™ is €2.08, compared to a current price of €0.97 — trading 53.6% below its estimated fair value. The current ROA % is 1.31%, which is 78% below median its 10-year median of 5.89 and 45.4% below the Travel & Leisure industry median of 2.40. GreenTree Hospitality Group's overall GF Score™ is 55/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROA % calculated?
ROA % is calculated from a company's financial statements. For GreenTree Hospitality Group (FRA:GT1A), the current ROA % is 1.31% 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 (FRA:GT1A) Overvalued in 2026?
Based on GuruFocus' analysis, GreenTree Hospitality Group stock appears to be undervalued.
The current stock price of €0.97 is trading 53.6% below its estimated GF Value™ of €2.08.
GuruFocus considers GreenTree Hospitality Group to be Possible Value Trap.
Key valuation signals for FRA:GT1A:
ROA %: 1.31% (78% below median its 10-year median of 5.89)
GF Value™: €2.08 vs. price of €0.97 (53.6% below fair value)
Industry Position: 45.4% below the Travel & Leisure median (#349 of 857)
No single metric tells the full story. See the FRA:GT1A 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.
55GF Score
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