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Magnificent Hotel InvestmentsHKSE:00201 +1.56% Operating Margin % is 18.00% as of Dec. 2025, which is 60% above its 10-year median of 11.23. The stock has 6 warning signs investors should review. Among 840 Travel & Leisure companies, Magnificent Hotel Investments ranks better than 60.83% on this metric.
The historical rank and industry rank for Magnificent Hotel Investments's Operating Margin % or its related term are showing as below:
HKSE:00201'
s Operating Margin % Range Over the Past 10 Years
Min: -10.25 Med: 11.23 Max: 35.14
Current: 11.85
HKSE:00201's Operating Margin % is ranked better than 60.83% of 840
companies
in the Travel & Leisure industry
Industry Median: 8.23
vs HKSE:00201: 11.85
Magnificent Hotel Investments (HKSE:00201) 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.
Magnificent Hotel Investments Operating Margin % Related Terms
Magnificent Hotel Investments 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.
Magnificent Hotel Investments Operating Margin % Chart
HKSE:00201 vs MAR, HLT, H: Operating Margin % Comparison
For the Lodging subindustry, Magnificent Hotel Investments'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.
Magnificent Hotel Investments Operating Margin % vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Magnificent Hotel Investments's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Magnificent Hotel Investments's Operating Margin % falls into.
Magnificent Hotel Investments 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.
* 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.
Magnificent Hotel Investments (HKSE:00201) has a Operating Margin % of 18.00% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Magnificent Hotel Investments and its competitors. This is 60% above median its historical median of 11.23. According to the industry distribution chart, Magnificent Hotel Investments ranks #329 out of 840 companies in the Travel & Leisure industry, placing it in the top 39.2%.
Is Magnificent Hotel Investments' Operating Margin % too high?
Magnificent Hotel Investments' current Operating Margin % of 18.00% is 60% above median its 10-year median of 11.23. The Travel & Leisure industry median Operating Margin % is 8.23. Magnificent Hotel Investments' value of 18.00% is 118.7% above this industry median. Based on the distribution chart, Magnificent Hotel Investments ranks #329 out of 840 companies in the Travel & Leisure industry, which is above the industry midpoint.
How does Magnificent Hotel Investments' Operating Margin % compare to MAR and HLT?
According to the Travel & Leisure industry distribution chart, Magnificent Hotel Investments ranks #329 out of 840 companies for Operating Margin %. This puts Magnificent Hotel Investments in the upper half of its industry. The industry median Operating Margin % is 8.23. Magnificent Hotel Investments' value of 18.00% is 118.7% above this benchmark. While the company's 10-year median is 11.23 vs. the industry median of 8.23, Magnificent Hotel Investments 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 Operating Margin % for a Travel & Leisure company?
The median Operating Margin % among Travel & Leisure companies is 8.23, based on 840 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. Magnificent Hotel Investments's current Operating Margin % of 18.00% is 118.7% 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 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 Magnificent Hotel Investments and its competitors. For the Travel & Leisure industry, the median Operating Margin % is 8.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Magnificent Hotel Investments's current Operating Margin % is 18.00%, which is 60% above median its own 10-year median of 11.23. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Magnificent Hotel Investments stock overvalued right now?
Based on GuruFocus' analysis, Magnificent Hotel Investments (HKSE:00201) is currently considered Modestly Undervalued. The stock's GF Value™ is HK$0.09, compared to a current price of HK$0.07 — trading 27.8% below its estimated fair value. The current Operating Margin % is 18.00%, which is 60% above median its 10-year median of 11.23 and 118.7% above the Travel & Leisure industry median of 8.23. 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 Magnificent Hotel Investments (HKSE:00201), the current Operating Margin % is 18.00% as of Dec. 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.
Magnificent Hotel Investments Ltd is an investment holding company. Along with its subsidiaries, it is engaged in the following businesses: investment and operation of hotels (Hospitality services), property investment, and securities investment. The majority of its revenue is derived from the Hospitality services business, which includes income generated from the operation of hotels like Best Western Plus Kowloon, Magnificent International Hotel, Best Western Hotel Causeway Bay, Ramada Hong Kong Grand, Wood Street Hotel, Grand Bay View Hotel, and others. Geographically, the Group generates maximum revenue from Hong Kong, and the rest from the People's Republic of China (PRC) and the United Kingdom.
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