Hostelworld GroupLSE:HSW +0.91%82 Operating Margin % is 18.26% as of Dec. 2025, which is 91% above its 10-year median of 9.54. GuruFocus rates LSE:HSW with a GF Score™ of 82/100 and a GF Value™ of £1.46 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 844 Travel & Leisure companies, Hostelworld Group ranks better than 64.81% on this metric.
Hostelworld Group (LSE:HSW) 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.
Hostelworld Group Operating Margin % Related Terms
Hostelworld Group Operating Margin % Historical Data
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The historical data trend for Hostelworld Group's Operating 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.
LSE:HSW vs BKNG, ABNB, RCL: Operating Margin % Comparison
For the Travel Services subindustry, Hostelworld Group'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.
Hostelworld Group Operating Margin % vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Hostelworld Group's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Hostelworld Group's Operating Margin % falls into.
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.
Hostelworld Group'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.
Hostelworld Group (LSE:HSW) has a Operating Margin % of 18.26% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Hostelworld Group and its competitors. This is 91% above median its historical median of 9.54. According to the industry distribution chart, Hostelworld Group ranks #297 out of 844 companies in the Travel & Leisure industry, placing it in the top 35.2%.
Is Hostelworld Group's Operating Margin % too high?
Hostelworld Group's current Operating Margin % of 18.26% is 91% above median its 10-year median of 9.54. The Travel & Leisure industry median Operating Margin % is 8.14. Hostelworld Group's value of 18.26% is 124.5% above this industry median. Based on the distribution chart, Hostelworld Group ranks #297 out of 844 companies in the Travel & Leisure industry, which is above the industry midpoint. Overall, Hostelworld Group has a GF Score™ of 82/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Hostelworld Group's Operating Margin % compare to BKNG and ABNB?
According to the Travel & Leisure industry distribution chart, Hostelworld Group ranks #297 out of 844 companies for Operating Margin %. This puts Hostelworld Group in the upper half of its industry. The industry median Operating Margin % is 8.14. Hostelworld Group's value of 18.26% is 124.5% above this benchmark. While the company's 10-year median is 9.54 vs. the industry median of 8.14, Hostelworld 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 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. Hostelworld Group's current Operating Margin % of 18.26% is 124.5% 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 Hostelworld Group 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. Hostelworld Group's current Operating Margin % is 18.26%, which is 91% above median its own 10-year median of 9.54. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hostelworld Group stock overvalued right now?
Based on GuruFocus' analysis, Hostelworld Group (LSE:HSW) is currently considered Modestly Undervalued. The stock's GF Value™ is £1.46, compared to a current price of £1.11 — trading 24.3% below its estimated fair value. The current Operating Margin % is 18.26%, which is 91% above median its 10-year median of 9.54 and 124.5% above the Travel & Leisure industry median of 8.14. Hostelworld Group's overall GF Score™ is 82/100 with 1 warning sign 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 Hostelworld Group (LSE:HSW), the current Operating Margin % is 18.26% 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 Hostelworld Group (LSE:HSW) Overvalued in 2026?
Based on GuruFocus' analysis, Hostelworld Group stock appears to be undervalued.
The current stock price of £1.11 is trading 24.3% below its estimated GF Value™ of £1.46.
GuruFocus considers Hostelworld Group to be Modestly Undervalued.
Key valuation signals for LSE:HSW:
Operating Margin %: 18.26% (91% above median its 10-year median of 9.54)
GF Value™: £1.46 vs. price of £1.11 (24.3% below fair value)
Industry Position: 124.5% above the Travel & Leisure median (#297 of 844)
No single metric tells the full story. See the LSE:HSW stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hostelworld Group PLC is a social network-powered Online Travel Agent (OTA) focused on the hostel market. It has developed and promoted the Hostelworld brand, operating a two-sided marketplace focused on the hostelling category. The Hostel partners load their bed inventory to the company's platform, which it markets to customers via its website and mobile Android and iOS apps. In addition, the Hostelworld platform has a series of social features on its platform that connect travellers in hostels and cities based on their booking data. Geographically, it derives maximum revenue from Europe, followed by Asia, Africa and Oceania, and the Americas.
82GF Score
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