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GreenTree Hospitality GroupGHG +0.88%51 ROC (Joel Greenblatt) % is 6.46% as of Mar. 2026, which is 84% below its 10-year median of 41.23. GuruFocus rates GHG with a GF Scoreâ„¢ of 51/100 and a GF Valueâ„¢ of $2.46 (Possible Value Trap). The stock has 3 warning signs investors should review. Among 847 Travel & Leisure companies, GreenTree Hospitality Group ranks better than 55.37% on this metric.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits). He defines ROC (Joel Greenblatt) % as EBIT divided by the total of Property, Plant and Equipment and net working capital. GreenTree Hospitality Group's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 6.46%.
The historical rank and industry rank for GreenTree Hospitality Group's ROC (Joel Greenblatt) % or its related term are showing as below:
GHG'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: -25.73 Med: 41.23 Max: 453.81
Current: 12.57
During the past 11 years, GreenTree Hospitality Group's highest ROC (Joel Greenblatt) % was 453.81%. The lowest was -25.73%. And the median was 41.23%.
GHG's ROC (Joel Greenblatt) % is ranked better than 55.37% of 847
companies
in the Travel & Leisure industry
Industry Median: 10
vs GHG: 12.57
GreenTree Hospitality Group (NYSE:GHG) ROC (Joel Greenblatt) % Explanation
The way Joel Greenblatt defines Return on Capital is a more accurate measure of how efficiently the company generates returns onthe capital actually invested in the business. EBIT is used instead of net income because the tax and interest payment may be affected by factors other than the core business operation. Intangible assets are not included in the calculation because they don't need to be replaced.
* 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 ROC (Joel Greenblatt) % Chart
GHG vs PHSE, INTG, PRSI: ROC (Joel Greenblatt) % Comparison
For the Lodging subindustry, GreenTree Hospitality Group's ROC (Joel Greenblatt) %, along with its competitors' market caps and ROC (Joel Greenblatt) % 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 ROC (Joel Greenblatt) % vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, GreenTree Hospitality Group's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where GreenTree Hospitality Group's ROC (Joel Greenblatt) % falls into.
GreenTree Hospitality Group ROC (Joel Greenblatt) % Calculation
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits) . He defines Return on Capital as follows:
EBIT stands for Earnings Before Interest and Taxes.
Fixed Assets are also known as non-current assets. They include the Property, Plant and Equipment that the firm needs in its operation.
GuruFocus calculates net working capital as: (Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Deferred Revenue + Other Current Liabilities). We're trying to account for OPERATING assets and liabilities (part of daily business) when calculating working capital. Cash and marketable securities are considered NON-OPERATING assets and are not included in calculation. We will also back out all interest bearing debt, short term debt and the portion of long term debt that is due in the current period from the current liabilities. This debt will be considered when computing cost of capital and it would be inappropriate to count it twice.
Note:
The EBIT data used here is four times the quarterly (Mar. 2026) EBIT 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.
What does a ROC (Joel Greenblatt) % of 6.46% mean?
GreenTree Hospitality Group (GHG) has a ROC (Joel Greenblatt) % of 6.46% as of Mar. 2026. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on GreenTree Hospitality Group and its competitors. This is 84% below median its historical median of 41.23. According to the industry distribution chart, GreenTree Hospitality Group ranks #378 out of 847 companies in the Travel & Leisure industry, placing it in the top 44.6%.
Is GreenTree Hospitality Group's ROC (Joel Greenblatt) % too high?
GreenTree Hospitality Group's current ROC (Joel Greenblatt) % of 6.46% is 84% below median its 10-year median of 41.23. The Travel & Leisure industry median ROC (Joel Greenblatt) % is 10.00. GreenTree Hospitality Group's value of 6.46% is 35.4% below this industry median. Based on the distribution chart, GreenTree Hospitality Group ranks #378 out of 847 companies in the Travel & Leisure industry, which is above the industry midpoint. Overall, GreenTree Hospitality Group has a GF Scoreâ„¢ 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 ROC (Joel Greenblatt) % compare to PHSE and INTG?
According to the Travel & Leisure industry distribution chart, GreenTree Hospitality Group ranks #378 out of 847 companies for ROC (Joel Greenblatt) %. This puts GreenTree Hospitality Group in the upper half of its industry. The industry median ROC (Joel Greenblatt) % is 10.00. GreenTree Hospitality Group's value of 6.46% is 35.4% below this benchmark. While the company's 10-year median is 41.23 vs. the industry median of 10.00, 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 ROC (Joel Greenblatt) % for a Travel & Leisure company?
The median ROC (Joel Greenblatt) % among Travel & Leisure companies is 10.00, based on 847 companies in the industry. Companies in the top quartile (top 25%) have a ROC (Joel Greenblatt) % significantly above this median, while those in the bottom quartile fall well below. However, ROC (Joel Greenblatt) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. GreenTree Hospitality Group's current ROC (Joel Greenblatt) % of 6.46% is 35.4% 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 ROC (Joel Greenblatt) % mean?
A high ROC (Joel Greenblatt) % can signal that a stock is expensive relative to its fundamentals. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on GreenTree Hospitality Group and its competitors. For the Travel & Leisure industry, the median ROC (Joel Greenblatt) % is 10.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. GreenTree Hospitality Group's current ROC (Joel Greenblatt) % is 6.46%, which is 84% below median its own 10-year median of 41.23. 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 ROC (Joel Greenblatt) % is 6.46%, which is 84% below median its 10-year median of 41.23 and 35.4% below the Travel & Leisure industry median of 10.00. 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 ROC (Joel Greenblatt) % calculated?
ROC (Joel Greenblatt) % is calculated from a company's financial statements. For GreenTree Hospitality Group (GHG), the current ROC (Joel Greenblatt) % is 6.46% 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:
ROC (Joel Greenblatt) %: 6.46% (84% below median its 10-year median of 41.23)
GF Value™: $2.46 vs. price of $1.14 (53.7% below fair value)
Industry Position: 35.4% below the Travel & Leisure median (#378 of 847)
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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