GreenTree Hospitality's Narrowing Margins and Negative Earnings Growth Raise Concerns About Dividend Sustainability and Low Valuation.

GreenTree Hospitality Group (GHG) posted a net profit margin of 15.3%, down from 16.5% last year. Its earnings have declined at an average rate of 2.4% annually over the past five years, with negative earnings growth in the latest period. Despite a low Price-To-Earnings Ratio of 8.3x, the company's dividend sustainability is under pressure due to falling profit margins and negative earnings growth. Shares are trading at $2.21, above the estimated fair value of $1.91.

GreenTree Hospitality Group Ltd. (NYSE: GHG) announced a quarterly dividend of $0.06 per share, payable on November 18th, 2025, to shareholders of record on October 31st, 2025. This dividend represents an annualized yield of 10.9% GreenTree Hospitality Group Ltd. Sponsored ADR Declares Quarterly Dividend of $0.06 (NYSE:GHG)^[1].

Despite the dividend declaration, GreenTree Hospitality Group has reported a net profit margin of 15.3% for the latest period, a decline from 16.5% in the previous year. The company's earnings have decreased at an average annual rate of 2.4% over the past five years, with negative earnings growth in the latest period .

The company's low Price-To-Earnings (P/E) ratio of 8.3x suggests that its stock is undervalued compared to its earnings. However, the declining profit margins and negative earnings growth put the sustainability of its dividend under pressure. The stock is currently trading at $2.21, above the estimated fair value of $1.91 .

Institutional investors have shown interest in GreenTree Hospitality Group, with hedge funds and other institutional investors owning 8.05% of the company's stock. Genus Capital Management Inc. recently increased its stake by 200.0% in the first quarter of 2025 GreenTree Hospitality Group Ltd. Sponsored ADR Declares Quarterly Dividend of $0.06 (NYSE:GHG)^[1].