H World GroupFRA:CL4 +1.69%83 Net Margin % is 13.63% as of Mar. 2026, which is 11% above its 10-year median of 12.33. GuruFocus rates FRA:CL4 with a GF Score™ of 83/100 and a GF Value™ of €3.92 (Fairly Valued). The stock has 1 warning sign investors should review. Among 847 Travel & Leisure companies, H World Group ranks better than 85.12% on this metric.
Net margin is calculated as Net Income divided by its Revenue. H World Group's Net Income for the
three
months ended in Mar. 2026 was €103 Mil. H World Group's Revenue for the
three
months ended in Mar. 2026 was €753 Mil. Therefore, H World Group's net margin for the quarter that ended in Mar. 2026 was 13.63%.
The historical rank and industry rank for H World Group's Net Margin % or its related term are showing as below:
FRA:CL4'
s Net Margin % Range Over the Past 10 Years
Min: -21.5 Med: 12.33 Max: 20.07
Current: 19.25
FRA:CL4's Net Margin % is ranked better than 85.12% of 847
companies
in the Travel & Leisure industry
Industry Median: 4.74
vs FRA:CL4: 19.25
H World Group (FRA:CL4) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
H World Group Net Margin % Related Terms
H World Group Net Margin % Historical Data
* Premium members only.
The historical data trend for H World Group's Net 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.
For the Lodging subindustry, H World Group's Net Margin %, along with its competitors' market caps and Net 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 Net Margin % vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, H World Group's Net Margin % distribution charts can be found below:
* The bar in red indicates where H World Group's Net 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.
H World Group (FRA:CL4) has a Net Margin % of 13.63% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on H World Group and its competitors. This is 11% above median its historical median of 12.33. According to the industry distribution chart, H World Group ranks #126 out of 847 companies in the Travel & Leisure industry, placing it in the top 14.9%.
Is H World Group's Net Margin % too high?
H World Group's current Net Margin % of 13.63% is 11% above median its 10-year median of 12.33. The Travel & Leisure industry median Net Margin % is 4.74. H World Group's value of 13.63% is 187.6% above this industry median. Based on the distribution chart, H World Group ranks #126 out of 847 companies in the Travel & Leisure industry, which is in the top quartile — a strong position relative to peers. Overall, H World Group has a GF Score™ of 83/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does H World Group's Net Margin % compare to H and WH?
According to the Travel & Leisure industry distribution chart, H World Group ranks #126 out of 847 companies for Net Margin %. This places H World Group in the top 15% of its industry — outperforming the majority of peers. The industry median Net Margin % is 4.74. H World Group's value of 13.63% is 187.6% above this benchmark. While the company's 10-year median is 12.33 vs. the industry median of 4.74, H World Group 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 Net Margin % for a Travel & Leisure company?
The median Net Margin % among Travel & Leisure companies is 4.74, based on 847 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. H World Group's current Net Margin % of 13.63% is 187.6% 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 Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on H World Group and its competitors. For the Travel & Leisure industry, the median Net Margin % is 4.74 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. H World Group's current Net Margin % is 13.63%, which is 11% above median its own 10-year median of 12.33. 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?
Based on GuruFocus' analysis, H World Group (FRA:CL4) is currently considered Fairly Valued. The stock's GF Value™ is €3.92, compared to a current price of €3.62 — trading 7.7% below its estimated fair value. The current Net Margin % is 13.63%, which is 11% above median its 10-year median of 12.33 and 187.6% above the Travel & Leisure industry median of 4.74. H World Group's overall GF Score™ is 83/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For H World Group (FRA:CL4), the current Net Margin % is 13.63% 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 (FRA:CL4) Overvalued in 2026?
Based on GuruFocus' analysis, H World Group stock appears to be undervalued.
The current stock price of €3.62 is trading 7.7% below its estimated GF Value™ of €3.92.
GuruFocus considers H World Group to be Fairly Valued.
Key valuation signals for FRA:CL4:
Net Margin %: 13.63% (11% above median its 10-year median of 12.33)
GF Value™: €3.92 vs. price of €3.62 (7.7% below fair value)
Industry Position: 187.6% above the Travel & Leisure median (#126 of 847)
No single metric tells the full story. See the FRA:CL4 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.
83GF Score
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