H World GroupMEX:HTHTN 84 Gross Margin % is 39.04% as of Mar. 2026, which is 19% above its 10-year median of 32.75. GuruFocus rates MEX:HTHTN with a GF Score™ of 84/100 and a GF Value™ of MXN631.09. The stock has 1 warning sign investors should review. Among 793 Travel & Leisure companies, H World Group ranks worse than 54.98% on this metric.
The historical rank and industry rank for H World Group's Gross Margin % or its related term are showing as below:
MEX:HTHTN'
s Gross Margin % Range Over the Past 10 Years
Min: 4.58 Med: 32.75 Max: 40.58
Current: 40.58
During the past 13 years, the highestGross Margin % of H World Group was 40.58%. The lowest was 4.58%. And the median was 32.75%.
MEX:HTHTN's Gross Margin % is ranked worse than 54.98% of 793
companies
in the Travel & Leisure industry
Industry Median: 44.02
vs MEX:HTHTN: 40.58
H World Group had a gross margin of 39.04% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for H World Group was 54.40% per year.
H World Group (MEX:HTHTN) Gross Margin % Explanation
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
H World Group had a gross margin of 39.04% for the quarter that ended in Mar. 2026 => Competition eroding margins
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.
H World Group Gross Margin % Related Terms
H World Group Gross Margin % Historical Data
* Premium members only.
The historical data trend for H World Group's Gross Margin % can be seen below:
* 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.
MEX:HTHTN vs H, WH, CHH: Gross Margin % Comparison
For the Lodging subindustry, H World Group'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.
H World Group Gross Margin % vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, H World Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where H World Group'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.
H World Group (MEX:HTHTN) has a Gross Margin % of 39.04% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on H World Group and its competitors. This is 19% above median its historical median of 32.75. Over the past decade, H World Group's Gross Margin % has ranged from 4.58 to 40.58. According to the industry distribution chart, H World Group ranks #436 out of 793 companies in the Travel & Leisure industry, placing it in the top 55%.
Is H World Group's Gross Margin % too high?
H World Group's current Gross Margin % of 39.04% is 19% above median its 10-year median of 32.75. Over the past 10 years, this metric has ranged from a low of 4.58 to a high of 40.58. The Travel & Leisure industry median Gross Margin % is 44.02. H World Group's value of 39.04% is 11.3% below this industry median. Based on the distribution chart, H World Group ranks #436 out of 793 companies in the Travel & Leisure industry, which is below the industry midpoint. Overall, H World Group has a GF Score™ of 84/100, reflecting its overall financial health beyond just this single metric.
How does H World Group's Gross Margin % compare to H and WH?
According to the Travel & Leisure industry distribution chart, H World Group ranks #436 out of 793 companies for Gross Margin %. This places H World Group in the lower half of its industry. The industry median Gross Margin % is 44.02. H World Group's value of 39.04% is 11.3% below this benchmark. Historically, H World Group's own Gross Margin % has ranged from 4.58 to 40.58 over the past decade. While the company's 10-year median is 32.75 vs. the industry median of 44.02, H World 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 Gross Margin % for a Travel & Leisure company?
The median Gross Margin % among Travel & Leisure companies is 44.02, 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. H World Group's current Gross Margin % of 39.04% is 11.3% 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 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 H World Group and its competitors. For the Travel & Leisure industry, the median Gross Margin % is 44.02 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. H World Group's current Gross Margin % is 39.04%, which is 19% above median its own 10-year median of 32.75. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is H World Group stock overvalued right now?
H World Group (MEX:HTHTN) has a current Gross Margin % of 39.04%. The stock's GF Value™ is MXN631.09, compared to a current price of MXN577.00 — trading 8.6% below its estimated fair value. The current Gross Margin % is 39.04%, which is 19% above median its 10-year median of 32.75 and 11.3% below the Travel & Leisure industry median of 44.02. H World Group's overall GF Score™ is 84/100 with 1 warning sign 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 H World Group (MEX:HTHTN), the current Gross Margin % is 39.04% 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 H World Group (MEX:HTHTN) Overvalued in 2026?
Based on GuruFocus' analysis, H World Group stock appears to be undervalued.
The current stock price of MXN577.00 is trading 8.6% below its estimated GF Value™ of MXN631.09.
Key valuation signals for MEX:HTHTN:
Gross Margin %: 39.04% (19% above median its 10-year median of 32.75)
GF Value™: MXN631.09 vs. price of MXN577.00 (8.6% below fair value)
Industry Position: 11.3% below the Travel & Leisure median (#436 of 793)
No single metric tells the full story. See the MEX:HTHTN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
H World Group Ltd a foremost, fast-growing multi-brand hotel group with international operations. The principal business activities of the Company are to develop and operate leased and owned, manachised and franchised hotels mainly in the PRC or PRC Mainland. The Group has two operating segments which are legacy Huazhu and legacy DH according to the way management intends to evaluate results and allocate resources within the Group. The majority of revenue comes from legacy Huazhu. The company has presence in Greater China and also Outside Greater China.
84GF Score
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