Melia Hotels InternationalFRA:MEL -1.92%63 Operating Margin % is 5.00% as of Mar. 2026, which is 59% below its 10-year median of 12.24. GuruFocus rates FRA:MEL with a GF Score™ of 63/100 and a GF Value™ of €7.35 (Significantly Overvalued). The stock has 9 warning signs investors should review. Among 844 Travel & Leisure companies, Melia Hotels International ranks better than 67.3% on this metric.
Melia Hotels International (FRA:MEL) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Melia Hotels International Operating Margin % Related Terms
Melia Hotels International Operating 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.
Melia Hotels International Operating Margin % Chart
FRA:MEL vs MAR, HLT, H: Operating Margin % Comparison
For the Lodging subindustry, Melia Hotels International's Operating Margin %, along with its competitors' market caps and Operating 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.
Melia Hotels International Operating Margin % vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Melia Hotels International's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Melia Hotels International's Operating Margin % falls into.
Melia Hotels International Operating Margin % Calculation
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Melia Hotels International's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* 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.
Melia Hotels International (FRA:MEL) has a Operating Margin % of 5.00% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Melia Hotels International and its competitors. This is 59% below median its historical median of 12.24. According to the industry distribution chart, Melia Hotels International ranks #276 out of 844 companies in the Travel & Leisure industry, placing it in the top 32.7%.
Is Melia Hotels International's Operating Margin % too high?
Melia Hotels International's current Operating Margin % of 5.00% is 59% below median its 10-year median of 12.24. The Travel & Leisure industry median Operating Margin % is 8.14. Melia Hotels International's value of 5.00% is 38.5% below this industry median. Based on the distribution chart, Melia Hotels International ranks #276 out of 844 companies in the Travel & Leisure industry, which is above the industry midpoint. Overall, Melia Hotels International has a GF Score™ of 63/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Melia Hotels International's Operating Margin % compare to MAR and HLT?
According to the Travel & Leisure industry distribution chart, Melia Hotels International ranks #276 out of 844 companies for Operating Margin %. This puts Melia Hotels International in the upper half of its industry. The industry median Operating Margin % is 8.14. Melia Hotels International's value of 5.00% is 38.5% below this benchmark. While the company's 10-year median is 12.24 vs. the industry median of 8.14, Melia Hotels International 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 Operating Margin % for a Travel & Leisure company?
The median Operating Margin % among Travel & Leisure companies is 8.14, based on 844 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Melia Hotels International's current Operating Margin % of 5.00% is 38.5% 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Melia Hotels International and its competitors. For the Travel & Leisure industry, the median Operating Margin % is 8.14 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Melia Hotels International's current Operating Margin % is 5.00%, which is 59% below median its own 10-year median of 12.24. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Melia Hotels International stock overvalued right now?
Based on GuruFocus' analysis, Melia Hotels International (FRA:MEL) is currently considered Significantly Overvalued. The stock's GF Value™ is €7.35, compared to a current price of €12.26 — trading 66.8% above its estimated fair value. The current Operating Margin % is 5.00%, which is 59% below median its 10-year median of 12.24 and 38.5% below the Travel & Leisure industry median of 8.14. Melia Hotels International's overall GF Score™ is 63/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Melia Hotels International (FRA:MEL), the current Operating Margin % is 5.00% 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 Melia Hotels International (FRA:MEL) Overvalued in 2026?
Based on GuruFocus' analysis, Melia Hotels International stock appears to be overvalued.
The current stock price of €12.26 is trading 66.8% above its estimated GF Value™ of €7.35.
GuruFocus considers Melia Hotels International to be Significantly Overvalued.
Key valuation signals for FRA:MEL:
Operating Margin %: 5.00% (59% below median its 10-year median of 12.24)
GF Value™: €7.35 vs. price of €12.26 (66.8% above fair value)
Industry Position: 38.5% below the Travel & Leisure median (#276 of 844)
No single metric tells the full story. See the FRA:MEL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Melia Hotels International SA is mainly engaged in tourism-related activities, specifically the management and operation of hotels owned by the Group under ownership, lease, management, or franchise arrangements, as well as activities related to vacation club operations. Its reportable segments are Hotel Business, which includes the operating activities of owned and leased hotels and additional hotel business activities such as casinos and tour operators; Hotel Management, which involves the operation of hotels under management or franchise arrangements; and Real Estate, which includes real estate development and operation. The Company operates mainly in Spain, Latin America, the rest of Europe, and Asia.
63GF Score
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