Ambassador HotelTPE:2704 +2.39%72 Gross Margin % is 29.71% as of Dec. 2025, which is 3% above its 10-year median of 28.91. GuruFocus rates TPE:2704 with a GF Score™ of 72/100 and a GF Value™ of NT$48.81 (Fairly Valued). The stock has 5 warning signs investors should review. Among 790 Travel & Leisure companies, Ambassador Hotel ranks worse than 73.16% on this metric.
The historical rank and industry rank for Ambassador Hotel's Gross Margin % or its related term are showing as below:
TPE:2704'
s Gross Margin % Range Over the Past 10 Years
Min: 0.45 Med: 28.91 Max: 43.38
Current: 28.93
During the past 13 years, the highestGross Margin % of Ambassador Hotel was 43.38%. The lowest was 0.45%. And the median was 28.91%.
TPE:2704's Gross Margin % is ranked worse than 73.16% of 790
companies
in the Travel & Leisure industry
Industry Median: 44.09
vs TPE:2704: 28.93
Ambassador Hotel had a gross margin of 29.71% for the quarter that ended in Dec. 2025 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Ambassador Hotel was 21.10% per year.
Ambassador Hotel (TPE:2704) 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
Ambassador Hotel had a gross margin of 29.71% for the quarter that ended in Dec. 2025 => 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.
Ambassador Hotel Gross Margin % Related Terms
Ambassador Hotel Gross Margin % Historical Data
* Premium members only.
The historical data trend for Ambassador Hotel'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.
TPE:2704 vs MAR, HLT, H: Gross Margin % Comparison
For the Lodging subindustry, Ambassador Hotel'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.
Ambassador Hotel Gross Margin % vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Ambassador Hotel's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Ambassador Hotel'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.
Ambassador Hotel (TPE:2704) has a Gross Margin % of 29.71% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Ambassador Hotel and its competitors. This is near median its historical median of 28.91. Over the past decade, Ambassador Hotel's Gross Margin % has ranged from 0.45 to 43.38. According to the industry distribution chart, Ambassador Hotel ranks #578 out of 790 companies in the Travel & Leisure industry, placing it in the top 73.2%.
Is Ambassador Hotel's Gross Margin % too high?
Ambassador Hotel's current Gross Margin % of 29.71% is near median its 10-year median of 28.91. Over the past 10 years, this metric has ranged from a low of 0.45 to a high of 43.38. The Travel & Leisure industry median Gross Margin % is 44.09. Ambassador Hotel's value of 29.71% is 32.6% below this industry median. Based on the distribution chart, Ambassador Hotel ranks #578 out of 790 companies in the Travel & Leisure industry, which is below the industry midpoint. Overall, Ambassador Hotel has a GF Score™ of 72/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Ambassador Hotel's Gross Margin % compare to MAR and HLT?
According to the Travel & Leisure industry distribution chart, Ambassador Hotel ranks #578 out of 790 companies for Gross Margin %. This places Ambassador Hotel in the lower half of its industry. The industry median Gross Margin % is 44.09. Ambassador Hotel's value of 29.71% is 32.6% below this benchmark. Historically, Ambassador Hotel's own Gross Margin % has ranged from 0.45 to 43.38 over the past decade. While the company's 10-year median is 28.91 vs. the industry median of 44.09, Ambassador Hotel 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 44.09, based on 790 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. Ambassador Hotel's current Gross Margin % of 29.71% is 32.6% 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 Ambassador Hotel and its competitors. For the Travel & Leisure industry, the median Gross Margin % is 44.09 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ambassador Hotel's current Gross Margin % is 29.71%, which is near median its own 10-year median of 28.91. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ambassador Hotel stock overvalued right now?
Based on GuruFocus' analysis, Ambassador Hotel (TPE:2704) is currently considered Fairly Valued. The stock's GF Value™ is NT$48.81, compared to a current price of NT$44.90 — trading 8% below its estimated fair value. The current Gross Margin % is 29.71%, which is near median its 10-year median of 28.91 and 32.6% below the Travel & Leisure industry median of 44.09. Ambassador Hotel's overall GF Score™ is 72/100 with 5 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 Ambassador Hotel (TPE:2704), the current Gross Margin % is 29.71% as of Dec. 2025. 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 Ambassador Hotel (TPE:2704) Overvalued in 2026?
Based on GuruFocus' analysis, Ambassador Hotel stock appears to be undervalued.
The current stock price of NT$44.90 is trading 8% below its estimated GF Value™ of NT$48.81.
GuruFocus considers Ambassador Hotel to be Fairly Valued.
Key valuation signals for TPE:2704:
Gross Margin %: 29.71% (near median its 10-year median of 28.91)
GF Value™: NT$48.81 vs. price of NT$44.90 (8% below fair value)
Industry Position: 32.6% below the Travel & Leisure median (#578 of 790)
No single metric tells the full story. See the TPE:2704 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ambassador Hotel Ltd is engaged in the operation of international tourist hotels and attached restaurants, cafe, lounge bars and clubs. The company provides accommodation and foodservice related products. The company has three segment: Kaohsiung segment, Hsinchu segment, and Taipei segment. The company generates key revenue from Hsinchu segment. Hsinchu segment is responsible for the foodservice and accommodation in Hsinchu area.
72GF Score
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Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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