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The Royal HotelTSE:9713 +0.33%67 Gross Margin % is 84.16% as of Mar. 2026, which is 12% above its 10-year median of 75.45. GuruFocus rates TSE:9713 with a GF Score™ of 67/100 and a GF Value™ of 円1,079.50 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 792 Travel & Leisure companies, The Royal Hotel ranks better than 91.41% on this metric.
The Royal Hotel (TSE:9713) 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
The Royal Hotel had a gross margin of 84.16% 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.
The Royal Hotel Gross Margin % Related Terms
The Royal Hotel Gross Margin % Historical Data
* Premium members only.
The historical data trend for The Royal 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.
TSE:9713 vs MAR, HLT, H: Gross Margin % Comparison
For the Lodging subindustry, The Royal 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.
The Royal Hotel Gross Margin % vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, The Royal Hotel's Gross Margin % distribution charts can be found below:
* The bar in red indicates where The Royal 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.
The Royal Hotel (TSE:9713) has a Gross Margin % of 84.16% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on The Royal Hotel and its competitors. This is 12% above median its historical median of 75.45. Over the past decade, The Royal Hotel's Gross Margin % has ranged from 74.39 to 85.24. According to the industry distribution chart, The Royal Hotel ranks #68 out of 792 companies in the Travel & Leisure industry, placing it in the top 8.6%.
Is The Royal Hotel's Gross Margin % too high?
The Royal Hotel's current Gross Margin % of 84.16% is 12% above median its 10-year median of 75.45. Over the past 10 years, this metric has ranged from a low of 74.39 to a high of 85.24. The Travel & Leisure industry median Gross Margin % is 43.57. The Royal Hotel's value of 84.16% is 93.2% above this industry median. Based on the distribution chart, The Royal Hotel ranks #68 out of 792 companies in the Travel & Leisure industry, which is in the top quartile — a strong position relative to peers. Overall, The Royal Hotel has a GF Score™ of 67/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does The Royal Hotel's Gross Margin % compare to MAR and HLT?
According to the Travel & Leisure industry distribution chart, The Royal Hotel ranks #68 out of 792 companies for Gross Margin %. This places The Royal Hotel in the top 9% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 43.57. The Royal Hotel's value of 84.16% is 93.2% above this benchmark. Historically, The Royal Hotel's own Gross Margin % has ranged from 74.39 to 85.24 over the past decade. While the company's 10-year median is 75.45 vs. the industry median of 43.57, The Royal Hotel 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 43.57, based on 792 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. The Royal Hotel's current Gross Margin % of 84.16% is 93.2% 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 The Royal Hotel and its competitors. For the Travel & Leisure industry, the median Gross Margin % is 43.57 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Royal Hotel's current Gross Margin % is 84.16%, which is 12% above median its own 10-year median of 75.45. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is The Royal Hotel stock overvalued right now?
Based on GuruFocus' analysis, The Royal Hotel (TSE:9713) is currently considered Modestly Undervalued. The stock's GF Value™ is 円1,079.50, compared to a current price of 円905.00 — trading 16.2% below its estimated fair value. The current Gross Margin % is 84.16%, which is 12% above median its 10-year median of 75.45 and 93.2% above the Travel & Leisure industry median of 43.57. The Royal Hotel's overall GF Score™ is 67/100 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 The Royal Hotel (TSE:9713), the current Gross Margin % is 84.16% 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 The Royal Hotel (TSE:9713) Overvalued in 2026?
Based on GuruFocus' analysis, The Royal Hotel stock appears to be undervalued.
The current stock price of 円905.00 is trading 16.2% below its estimated GF Value™ of 円1,079.50.
GuruFocus considers The Royal Hotel to be Modestly Undervalued.
Key valuation signals for TSE:9713:
Gross Margin %: 84.16% (12% above median its 10-year median of 75.45)
GF Value™: 円1,079.50 vs. price of 円905.00 (16.2% below fair value)
Industry Position: 93.2% above the Travel & Leisure median (#68 of 792)
No single metric tells the full story. See the TSE:9713 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
The Royal Hotel Ltd is a Japanese company engaged in the hotel industry. The company is a hotel operator providing accommodation, dining, and spa facilities. The company has developed eleven hotels around Hiroshima, Tokyo, and Kyoto.
67GF Score
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