Tongcheng Travel HoldingsFRA:TEM -4.29%77 Gross Margin % is 69.84% as of Mar. 2026, which is 1% above its 10-year median of 69.11. GuruFocus rates FRA:TEM with a GF Score™ of 77/100 and a GF Value™ of €2.76 (Possible Value Trap). The stock has 3 warning signs investors should review. Among 793 Travel & Leisure companies, Tongcheng Travel Holdings ranks better than 78.81% on this metric.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Tongcheng Travel Holdings had a gross margin of 69.84% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Tongcheng Travel Holdings Gross Margin % Related Terms
Tongcheng Travel Holdings Gross Margin % 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.
FRA:TEM vs BKNG, ABNB, RCL: Gross Margin % Comparison
For the Travel Services subindustry, Tongcheng Travel Holdings's Gross Margin %, along with its competitors' market caps and Gross Margin % 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.
Tongcheng Travel Holdings Gross Margin % vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Tongcheng Travel Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Tongcheng Travel Holdings's Gross Margin % 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.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Tongcheng Travel Holdings (FRA:TEM) has a Gross Margin % of 69.84% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Tongcheng Travel Holdings and its competitors. This is near median its historical median of 69.11. Over the past decade, Tongcheng Travel Holdings' Gross Margin % has ranged from 53.15 to 74.93. According to the industry distribution chart, Tongcheng Travel Holdings ranks #168 out of 793 companies in the Travel & Leisure industry, placing it in the top 21.2%.
Is Tongcheng Travel Holdings' Gross Margin % too high?
Tongcheng Travel Holdings' current Gross Margin % of 69.84% is near median its 10-year median of 69.11. Over the past 10 years, this metric has ranged from a low of 53.15 to a high of 74.93. The Travel & Leisure industry median Gross Margin % is 43.92. Tongcheng Travel Holdings' value of 69.84% is 59% above this industry median. Based on the distribution chart, Tongcheng Travel Holdings ranks #168 out of 793 companies in the Travel & Leisure industry, which is in the top quartile — a strong position relative to peers. Overall, Tongcheng Travel Holdings has a GF Score™ of 77/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Tongcheng Travel Holdings' Gross Margin % compare to BKNG and ABNB?
According to the Travel & Leisure industry distribution chart, Tongcheng Travel Holdings ranks #168 out of 793 companies for Gross Margin %. This places Tongcheng Travel Holdings in the top 21% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 43.92. Tongcheng Travel Holdings' value of 69.84% is 59% above this benchmark. Historically, Tongcheng Travel Holdings' own Gross Margin % has ranged from 53.15 to 74.93 over the past decade. While the company's 10-year median is 69.11 vs. the industry median of 43.92, Tongcheng Travel Holdings has consistently been above 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 Gross Margin % for a Travel & Leisure company?
The median Gross Margin % among Travel & Leisure companies is 43.92, based on 793 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Tongcheng Travel Holdings's current Gross Margin % of 69.84% is 59% above 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 Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Tongcheng Travel Holdings and its competitors. For the Travel & Leisure industry, the median Gross Margin % is 43.92 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tongcheng Travel Holdings's current Gross Margin % is 69.84%, which is near median its own 10-year median of 69.11. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tongcheng Travel Holdings stock overvalued right now?
Based on GuruFocus' analysis, Tongcheng Travel Holdings (FRA:TEM) is currently considered Possible Value Trap. The stock's GF Value™ is €2.76, compared to a current price of €1.34 — trading 51.4% below its estimated fair value. The current Gross Margin % is 69.84%, which is near median its 10-year median of 69.11 and 59% above the Travel & Leisure industry median of 43.92. Tongcheng Travel Holdings' overall GF Score™ is 77/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Tongcheng Travel Holdings (FRA:TEM), the current Gross Margin % is 69.84% 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 Tongcheng Travel Holdings (FRA:TEM) Overvalued in 2026?
Based on GuruFocus' analysis, Tongcheng Travel Holdings stock appears to be undervalued.
The current stock price of €1.34 is trading 51.4% below its estimated GF Value™ of €2.76.
GuruFocus considers Tongcheng Travel Holdings to be Possible Value Trap.
Key valuation signals for FRA:TEM:
Gross Margin %: 69.84% (near median its 10-year median of 69.11)
GF Value™: €2.76 vs. price of €1.34 (51.4% below fair value)
Industry Position: 59% above the Travel & Leisure median (#168 of 793)
No single metric tells the full story. See the FRA:TEM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tongcheng Travel is an online travel agency platform that provides booking services for hotel and ticketing in China. It generated 84% of its revenue from accommodation reservations and transportation ticketing in 2023. The rest came from advertising and in-house software sales. The platform provides both online and offline services in the form of call centers and travel kiosks. Tongcheng Travel was formed from the merger of Tongcheng Network and eLong in 2018. It is currently 21.38% owned by Tencent and 20.86% by Trip.com. Tongcheng targets lower-tier cities and as of 2021, 86.7% of its users are from non-first-tier cities in China and 61.7% of new paying users on Weixin were from Tier 3 or below cities in China. The company competes with Trip.com, Alibaba's Fliggy, and Meituan.
77GF Score
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