Hotel Newgrand CoTSE:9720 58 Gross Margin % is 75.08% as of Nov. 2025, which is 8% above its 10-year median of 69.61. GuruFocus rates TSE:9720 with a GF Score™ of 58/100 and a GF Value™ of 円6,869.06 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 792 Travel & Leisure companies, Hotel Newgrand Co ranks better than 85.48% on this metric.
The historical rank and industry rank for Hotel Newgrand Co's Gross Margin % or its related term are showing as below:
TSE:9720'
s Gross Margin % Range Over the Past 10 Years
Min: 68.05 Med: 69.61 Max: 75.6
Current: 74.93
During the past 13 years, the highestGross Margin % of Hotel Newgrand Co was 75.60%. The lowest was 68.05%. And the median was 69.61%.
TSE:9720's Gross Margin % is ranked better than 85.48% of 792
companies
in the Travel & Leisure industry
Industry Median: 43.97
vs TSE:9720: 74.93
Hotel Newgrand Co had a gross margin of 75.08% for the quarter that ended in Nov. 2025 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Hotel Newgrand Co was 2.00% per year.
Hotel Newgrand Co (TSE:9720) 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
Hotel Newgrand Co had a gross margin of 75.08% for the quarter that ended in Nov. 2025 => 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.
Hotel Newgrand Co Gross Margin % Related Terms
Hotel Newgrand Co Gross Margin % Historical Data
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The historical data trend for Hotel Newgrand Co'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:9720 vs MAR, HLT, H: Gross Margin % Comparison
For the Lodging subindustry, Hotel Newgrand Co'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.
Hotel Newgrand Co Gross Margin % vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Hotel Newgrand Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Hotel Newgrand Co'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.
Hotel Newgrand Co (TSE:9720) has a Gross Margin % of 75.08% as of Nov. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Hotel Newgrand Co and its competitors. This is near median its historical median of 69.61. Over the past decade, Hotel Newgrand Co's Gross Margin % has ranged from 68.05 to 75.60. According to the industry distribution chart, Hotel Newgrand Co ranks #115 out of 792 companies in the Travel & Leisure industry, placing it in the top 14.5%.
Is Hotel Newgrand Co's Gross Margin % too high?
Hotel Newgrand Co's current Gross Margin % of 75.08% is near median its 10-year median of 69.61. Over the past 10 years, this metric has ranged from a low of 68.05 to a high of 75.60. The Travel & Leisure industry median Gross Margin % is 43.97. Hotel Newgrand Co's value of 75.08% is 70.8% above this industry median. Based on the distribution chart, Hotel Newgrand Co ranks #115 out of 792 companies in the Travel & Leisure industry, which is in the top quartile — a strong position relative to peers. Overall, Hotel Newgrand Co has a GF Score™ of 58/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Hotel Newgrand Co's Gross Margin % compare to MAR and HLT?
According to the Travel & Leisure industry distribution chart, Hotel Newgrand Co ranks #115 out of 792 companies for Gross Margin %. This places Hotel Newgrand Co in the top 15% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 43.97. Hotel Newgrand Co's value of 75.08% is 70.8% above this benchmark. Historically, Hotel Newgrand Co's own Gross Margin % has ranged from 68.05 to 75.60 over the past decade. While the company's 10-year median is 69.61 vs. the industry median of 43.97, Hotel Newgrand Co 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 43.97, 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. Hotel Newgrand Co's current Gross Margin % of 75.08% is 70.8% 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 Hotel Newgrand Co and its competitors. For the Travel & Leisure industry, the median Gross Margin % is 43.97 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hotel Newgrand Co's current Gross Margin % is 75.08%, which is near median its own 10-year median of 69.61. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hotel Newgrand Co stock overvalued right now?
Based on GuruFocus' analysis, Hotel Newgrand Co (TSE:9720) is currently considered Modestly Undervalued. The stock's GF Value™ is 円6,869.06, compared to a current price of 円5,400.00 — trading 21.4% below its estimated fair value. The current Gross Margin % is 75.08%, which is near median its 10-year median of 69.61 and 70.8% above the Travel & Leisure industry median of 43.97. Hotel Newgrand Co's overall GF Score™ is 58/100 with 2 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 Hotel Newgrand Co (TSE:9720), the current Gross Margin % is 75.08% as of Nov. 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 Hotel Newgrand Co (TSE:9720) Overvalued in 2026?
Based on GuruFocus' analysis, Hotel Newgrand Co stock appears to be undervalued.
The current stock price of 円5,400.00 is trading 21.4% below its estimated GF Value™ of 円6,869.06.
GuruFocus considers Hotel Newgrand Co to be Modestly Undervalued.
Key valuation signals for TSE:9720:
Gross Margin %: 75.08% (near median its 10-year median of 69.61)
GF Value™: 円6,869.06 vs. price of 円5,400.00 (21.4% below fair value)
Industry Position: 70.8% above the Travel & Leisure median (#115 of 792)
No single metric tells the full story. See the TSE:9720 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hotel Newgrand Co Ltd is engaged in lodging operations. The company operates restaurants, hotels and food and beverage facilities, and real estate rentals with different accommodation plans and rooms.
58GF Score
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