GreenTree Hospitality Return On Equity vs. Price To Sales
| GHG Stock | USD 2.59 0.04 1.57% |
Return On Equity | First Reported 2010-12-31 | Previous Quarter 0.18673755 | Current Value 0.2 | Quarterly Volatility 0.16713141 |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.63 | 0.4178 |
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For GreenTree Hospitality profitability analysis, we use financial ratios and fundamental drivers that measure the ability of GreenTree Hospitality to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well GreenTree Hospitality Group utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between GreenTree Hospitality's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of GreenTree Hospitality Group over time as well as its relative position and ranking within its peers.
GreenTree |
Is Hotels, Resorts & Cruise Lines space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of GreenTree Hospitality. If investors know GreenTree will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about GreenTree Hospitality listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.59) | Earnings Share 0.37 | Revenue Per Share 15.94 | Quarterly Revenue Growth 0.032 | Return On Assets 0.0411 |
The market value of GreenTree Hospitality is measured differently than its book value, which is the value of GreenTree that is recorded on the company's balance sheet. Investors also form their own opinion of GreenTree Hospitality's value that differs from its market value or its book value, called intrinsic value, which is GreenTree Hospitality's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because GreenTree Hospitality's market value can be influenced by many factors that don't directly affect GreenTree Hospitality's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between GreenTree Hospitality's value and its price as these two are different measures arrived at by different means. Investors typically determine if GreenTree Hospitality is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, GreenTree Hospitality's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
GreenTree Hospitality Price To Sales vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining GreenTree Hospitality's current stock value. Our valuation model uses many indicators to compare GreenTree Hospitality value to that of its competitors to determine the firm's financial worth. GreenTree Hospitality Group is one of the top stocks in return on equity category among its peers. It also is one of the top stocks in price to sales category among its peers fabricating about 1.16 of Price To Sales per Return On Equity. At this time, GreenTree Hospitality's Return On Equity is most likely to slightly decrease in the upcoming years. Comparative valuation analysis is a catch-all technique that is used if you cannot value GreenTree Hospitality by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.GreenTree Price To Sales vs. Return On Equity
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
GreenTree Hospitality |
| = | 0.17 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Price to Sales ratio is typically used for valuing equity relative to its own past performance as well as to performance of other companies or market indexes. In most cases, the lower the ratio, the better it is for investors. However, it is advisable for investors to exercise caution when looking at price-to-sales ratios across different industries.
GreenTree Hospitality |
| = | 0.19 X |
The most critical factor to remember is that the price of equity takes a firm's debt into account, whereas the sales indicators do not consider financial leverage. Generally speaking, Price to Sales ratio shows how much market values every dollar of the company's sales.
GreenTree Price To Sales Comparison
GreenTree Hospitality is currently under evaluation in price to sales category among its peers.
GreenTree Hospitality Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in GreenTree Hospitality, profitability is also one of the essential criteria for including it into their portfolios because, without profit, GreenTree Hospitality will eventually generate negative long term returns. The profitability progress is the general direction of GreenTree Hospitality's change in net profit over the period of time. It can combine multiple indicators of GreenTree Hospitality, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | 28.4 M | 30.8 M | |
| Interest Income | 39.5 M | 46.5 M | |
| Operating Income | 335.6 M | 221 M | |
| Net Income From Continuing Ops | 326.4 M | 342.7 M | |
| Income Before Tax | 380.4 M | 262 M | |
| Total Other Income Expense Net | 17.4 M | 28.3 M | |
| Net Loss | -344 M | -326.8 M | |
| Net Income | 260.5 M | 170.8 M | |
| Income Tax Expense | 118.5 M | 87.9 M | |
| Net Interest Income | 24 M | 32.2 M | |
| Change To Netincome | 135.1 M | 141.9 M | |
| Net Income Per Share | 2.64 | 2.06 | |
| Income Quality | 1.75 | 1.40 | |
| Net Income Per E B T | 0.71 | 0.58 |
GreenTree Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on GreenTree Hospitality. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of GreenTree Hospitality position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the GreenTree Hospitality's important profitability drivers and their relationship over time.
Use GreenTree Hospitality in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if GreenTree Hospitality position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in GreenTree Hospitality will appreciate offsetting losses from the drop in the long position's value.GreenTree Hospitality Pair Trading
GreenTree Hospitality Group Pair Trading Analysis
The ability to find closely correlated positions to GreenTree Hospitality could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace GreenTree Hospitality when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back GreenTree Hospitality - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling GreenTree Hospitality Group to buy it.
The correlation of GreenTree Hospitality is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as GreenTree Hospitality moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if GreenTree Hospitality moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for GreenTree Hospitality can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your GreenTree Hospitality position
In addition to having GreenTree Hospitality in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Additional Information and Resources on Investing in GreenTree Stock
When determining whether GreenTree Hospitality is a strong investment it is important to analyze GreenTree Hospitality's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact GreenTree Hospitality's future performance. For an informed investment choice regarding GreenTree Stock, refer to the following important reports:Check out Risk vs Return Analysis. You can also try the Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
To fully project GreenTree Hospitality's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of GreenTree Hospitality at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include GreenTree Hospitality's income statement, its balance sheet, and the statement of cash flows.