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Hotel Royal Chihpen Spa Co (ROCO:5704) 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.
Hotel Royal Chihpen Spa Co Net Margin % Related Terms
Hotel Royal Chihpen Spa Co Net Margin % Historical Data
* 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, Hotel Royal Chihpen Spa Co'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.
Hotel Royal Chihpen Spa Co Net Margin % vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Hotel Royal Chihpen Spa Co's Net Margin % distribution charts can be found below:
* The bar in red indicates where Hotel Royal Chihpen Spa Co'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.
Hotel Royal Chihpen Spa Co (ROCO:5704) has a Net Margin % of -1,249.44% as of Jun. 2026. Net margin is the ratio of total net income to net sales. View historical data on Hotel Royal Chihpen Spa Co and its competitors. Over the past decade, Hotel Royal Chihpen Spa Co's Net Margin % has ranged from 2.41 to 24.78. According to the industry distribution chart, Hotel Royal Chihpen Spa Co ranks #492 out of 845 companies in the Travel & Leisure industry, placing it in the top 58.2%.
Is Hotel Royal Chihpen Spa Co's Net Margin % too high?
Hotel Royal Chihpen Spa Co's current Net Margin % is -1,249.44%. Over the past 10 years, this metric has ranged from a low of 2.41 to a high of 24.78. Based on the distribution chart, Hotel Royal Chihpen Spa Co ranks #492 out of 845 companies in the Travel & Leisure industry, which is below the industry midpoint. Overall, Hotel Royal Chihpen Spa Co has a GF Score™ of 77/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Hotel Royal Chihpen Spa Co's Net Margin % compare to MAR and HLT?
According to the Travel & Leisure industry distribution chart, Hotel Royal Chihpen Spa Co ranks #492 out of 845 companies for Net Margin %. This places Hotel Royal Chihpen Spa Co in the lower half of its industry. The industry median Net Margin % is 4.88. Historically, Hotel Royal Chihpen Spa Co's own Net Margin % has ranged from 2.41 to 24.78 over the past decade. 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 4.88, based on 845 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. 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 Hotel Royal Chihpen Spa Co and its competitors. For the Travel & Leisure industry, the median Net Margin % is 4.88 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hotel Royal Chihpen Spa Co's current Net Margin % is -1,249.44%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hotel Royal Chihpen Spa Co stock overvalued right now?
Based on GuruFocus' analysis, Hotel Royal Chihpen Spa Co (ROCO:5704) is currently considered Fairly Valued. The stock's GF Value™ is NT$23.45, compared to a current price of NT$23.55 — trading 0.4% above its estimated fair value. The current Net Margin % is -1,249.44%. Hotel Royal Chihpen Spa Co's overall GF Score™ is 77/100 with 5 warning signs 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 Hotel Royal Chihpen Spa Co (ROCO:5704), the current Net Margin % is -1,249.44% as of Jun. 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 Hotel Royal Chihpen Spa Co (ROCO:5704) Overvalued in 2026?
Based on GuruFocus' analysis, Hotel Royal Chihpen Spa Co stock appears to be overvalued.
The current stock price of NT$23.55 is trading 0.4% above its estimated GF Value™ of NT$23.45.
GuruFocus considers Hotel Royal Chihpen Spa Co to be Fairly Valued.
Key valuation signals for ROCO:5704:
Net Margin %: -1,249.44%
GF Value™: NT$23.45 vs. price of NT$23.55 (0.4% above fair value)
No single metric tells the full story. See the ROCO:5704 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hotel Royal Chihpen Spa Co Ltd provides lodging and restaurant services in Taiwan. Its hotels and resorts include Hotel Royal Hsinchu, Hotel Royal Chihpen, Hotel Royal Chiaohsi, Hotel Royal-Nikko Taipei and Hotel Royal Beitou, among others.
77GF Score
Get the complete analysis for ROCO:5704
Net Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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