The Hongkong and Shanghai HotelsHKSHY 63 Operating Margin % is 14.39% as of Dec. 2025, which is 48% above its 10-year median of 9.72. GuruFocus rates HKSHY with a GF Score™ of 63/100 and a GF Value™ of $14.71 (Fairly Valued). The stock has 3 warning signs investors should review. Among 844 Travel & Leisure companies, The Hongkong and Shanghai Hotels ranks better than 62.8% on this metric.
The Hongkong and Shanghai Hotels (OTCPK:HKSHY) 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.
The Hongkong and Shanghai Hotels Operating Margin % Related Terms
The Hongkong and Shanghai Hotels 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.
The Hongkong and Shanghai Hotels Operating Margin % Chart
HKSHY vs MAR, HLT, H: Operating Margin % Comparison
For the Lodging subindustry, The Hongkong and Shanghai Hotels'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.
The Hongkong and Shanghai Hotels Operating Margin % vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, The Hongkong and Shanghai Hotels's Operating Margin % distribution charts can be found below:
* The bar in red indicates where The Hongkong and Shanghai Hotels's Operating Margin % falls into.
The Hongkong and Shanghai Hotels 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.
The Hongkong and Shanghai Hotels (HKSHY) has a Operating Margin % of 14.39% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on The Hongkong and Shanghai Hotels and its competitors. This is 48% above median its historical median of 9.72. According to the industry distribution chart, The Hongkong and Shanghai Hotels ranks #314 out of 844 companies in the Travel & Leisure industry, placing it in the top 37.2%.
Is The Hongkong and Shanghai Hotels' Operating Margin % too high?
The Hongkong and Shanghai Hotels' current Operating Margin % of 14.39% is 48% above median its 10-year median of 9.72. The Travel & Leisure industry median Operating Margin % is 8.14. The Hongkong and Shanghai Hotels' value of 14.39% is 76.9% above this industry median. Based on the distribution chart, The Hongkong and Shanghai Hotels ranks #314 out of 844 companies in the Travel & Leisure industry, which is above the industry midpoint. Overall, The Hongkong and Shanghai Hotels has a GF Score™ of 63/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does The Hongkong and Shanghai Hotels' Operating Margin % compare to MAR and HLT?
According to the Travel & Leisure industry distribution chart, The Hongkong and Shanghai Hotels ranks #314 out of 844 companies for Operating Margin %. This puts The Hongkong and Shanghai Hotels in the upper half of its industry. The industry median Operating Margin % is 8.14. The Hongkong and Shanghai Hotels' value of 14.39% is 76.9% above this benchmark. While the company's 10-year median is 9.72 vs. the industry median of 8.14, The Hongkong and Shanghai Hotels 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 8.14, 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. The Hongkong and Shanghai Hotels's current Operating Margin % of 14.39% is 76.9% 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 The Hongkong and Shanghai Hotels 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. The Hongkong and Shanghai Hotels's current Operating Margin % is 14.39%, which is 48% above median its own 10-year median of 9.72. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is The Hongkong and Shanghai Hotels stock overvalued right now?
Based on GuruFocus' analysis, The Hongkong and Shanghai Hotels (HKSHY) is currently considered Fairly Valued. The stock's GF Value™ is $14.71, compared to a current price of $13.35 — trading 9.2% below its estimated fair value. The current Operating Margin % is 14.39%, which is 48% above median its 10-year median of 9.72 and 76.9% above the Travel & Leisure industry median of 8.14. The Hongkong and Shanghai Hotels' overall GF Score™ is 63/100 with 3 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 The Hongkong and Shanghai Hotels (HKSHY), the current Operating Margin % is 14.39% 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.
Is The Hongkong and Shanghai Hotels (HKSHY) Overvalued in 2026?
Based on GuruFocus' analysis, The Hongkong and Shanghai Hotels stock appears to be undervalued.
The current stock price of $13.35 is trading 9.2% below its estimated GF Value™ of $14.71.
GuruFocus considers The Hongkong and Shanghai Hotels to be Fairly Valued.
Key valuation signals for HKSHY:
Operating Margin %: 14.39% (48% above median its 10-year median of 9.72)
GF Value™: $14.71 vs. price of $13.35 (9.2% below fair value)
Industry Position: 76.9% above the Travel & Leisure median (#314 of 844)
No single metric tells the full story. See the HKSHY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
The Hongkong and Shanghai Hotels Business Description
The Hongkong and Shanghai Hotels Ltd is a luxury hospitality and real estate group. It owns and operates hotel properties under the Peninsula brand located in city centres across Asia, the U.S., and Europe. The company's assets comprise a small number of ultra-luxury hotels, real estate assets, and tourism assets, including The Peak Tram, one of Hong Kong's tourist attractions. The group's reportable segments are: Hotels, Commercial Properties, Peak Tram, Retail, and Others. Maximum revenue is generated from its Hotels segment, which includes revenue generated from operating hotels, leasing of commercial shopping arcades, and office premises located within the hotel buildings. Geographically, the group generates the majority of its revenue from Greater China.
63GF Score
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