Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. GreenTree Hospitality Group's annualized ROCE % for the quarter that ended in Mar. 2026 was 3.07%.
GreenTree Hospitality Group (NYSE:GHG) ROCE % Explanation
ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.
Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.
GreenTree Hospitality Group ROCE % Related Terms
GreenTree Hospitality Group ROCE % 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.
(1) 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.
GreenTree Hospitality Group (GHG) has a ROCE % of 3.07% as of Mar. 2026.
Is GreenTree Hospitality Group's ROCE % too high?
GreenTree Hospitality Group's current ROCE % is 3.07%. The Travel & Leisure industry median ROCE % is 6.07. GreenTree Hospitality Group's value of 3.07% is 49.4% below this industry median. 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 ROCE % compare to PHSE and INTG?
GreenTree Hospitality Group's ROCE % of 3.07% can be compared against companies in the Travel & Leisure industry. The industry median ROCE % is 6.07. GreenTree Hospitality Group's value of 3.07% is 49.4% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROCE % for a Travel & Leisure company?
The median ROCE % among Travel & Leisure companies is 6.07, based on 836 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. GreenTree Hospitality Group's current ROCE % of 3.07% is 49.4% 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 ROCE % mean?
A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Travel & Leisure industry, the median ROCE % is 6.07 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. GreenTree Hospitality Group's current ROCE % is 3.07%. 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 ROCE % is 3.07% and 49.4% below the Travel & Leisure industry median of 6.07. 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 ROCE % calculated?
ROCE % is calculated from a company's financial statements. For GreenTree Hospitality Group (GHG), the current ROCE % is 3.07% 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:
ROCE %: 3.07%
GF Value™: $2.46 vs. price of $1.14 (53.7% below fair value)
Industry Position: 49.4% below the Travel & Leisure median
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
Get the complete analysis for GHG
ROCE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
GHG has been successfully added to your 
