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Abhotel CoNGO:6565 -0.63%84 Operating Margin % is 39.53% as of Mar. 2026, which is 44% above its 10-year median of 27.49. GuruFocus rates NGO:6565 with a GF Score™ of 84/100 and a GF Value™ of 円1,980.87 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 842 Travel & Leisure companies, Abhotel Co ranks better than 96.91% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Abhotel Co's Operating Income for the
six
months ended in Mar. 2026 was 円2,475 Mil. Abhotel Co's Revenue for the
six
months ended in Mar. 2026 was 円6,261 Mil. Therefore, Abhotel Co's Operating Margin % for the quarter that ended in Mar. 2026 was 39.53%.
Good Sign:
Abhotel Co Ltd operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for Abhotel Co's Operating Margin % or its related term are showing as below:
NGO:6565'
s Operating Margin % Range Over the Past 10 Years
Min: 0.94 Med: 27.49 Max: 39.8
Current: 39.8
NGO:6565's Operating Margin % is ranked better than 96.91% of 842
companies
in the Travel & Leisure industry
Industry Median: 8
vs NGO:6565: 39.80
Abhotel Co's 5-Year Average Operating Margin % Growth Rate was 84.80% per year.
Abhotel Co's Operating Income for the
six
months ended in Mar. 2026 was 円2,475 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was 円4,893 Mil.
Abhotel Co (NGO:6565) 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.
Abhotel Co Operating Margin % Related Terms
Abhotel Co Operating Margin % Historical Data
* Premium members only.
The historical data trend for Abhotel Co'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.
NGO:6565 vs MAR, HLT, HTHT: Operating Margin % Comparison
For the Lodging subindustry, Abhotel Co'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.
Abhotel Co Operating Margin % vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Abhotel Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Abhotel Co'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.
Abhotel Co's Operating Margin % for the fiscal year that ended in Mar. 2026 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.
Abhotel Co (NGO:6565) has a Operating Margin % of 39.53% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Abhotel Co and its competitors. This is 44% above median its historical median of 27.49. Over the past decade, Abhotel Co's Operating Margin % has ranged from 0.94 to 39.80. According to the industry distribution chart, Abhotel Co ranks #26 out of 842 companies in the Travel & Leisure industry, placing it in the top 3.1%.
Is Abhotel Co's Operating Margin % too high?
Abhotel Co's current Operating Margin % of 39.53% is 44% above median its 10-year median of 27.49. Over the past 10 years, this metric has ranged from a low of 0.94 to a high of 39.80. The Travel & Leisure industry median Operating Margin % is 8.00. Abhotel Co's value of 39.53% is 394.1% above this industry median. Based on the distribution chart, Abhotel Co ranks #26 out of 842 companies in the Travel & Leisure industry, which is in the top quartile — a strong position relative to peers. Overall, Abhotel Co has a GF Score™ of 84/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Abhotel Co's Operating Margin % compare to MAR and HLT?
According to the Travel & Leisure industry distribution chart, Abhotel Co ranks #26 out of 842 companies for Operating Margin %. This places Abhotel Co in the top 3% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 8.00. Abhotel Co's value of 39.53% is 394.1% above this benchmark. Historically, Abhotel Co's own Operating Margin % has ranged from 0.94 to 39.80 over the past decade. While the company's 10-year median is 27.49 vs. the industry median of 8.00, Abhotel Co 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 8.00, based on 842 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. Abhotel Co's current Operating Margin % of 39.53% is 394.1% 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 Abhotel Co and its competitors. For the Travel & Leisure industry, the median Operating Margin % is 8.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Abhotel Co's current Operating Margin % is 39.53%, which is 44% above median its own 10-year median of 27.49. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Abhotel Co stock overvalued right now?
Based on GuruFocus' analysis, Abhotel Co (NGO:6565) is currently considered Modestly Undervalued. The stock's GF Value™ is 円1,980.87, compared to a current price of 円1,412.00 — trading 28.7% below its estimated fair value. The current Operating Margin % is 39.53%, which is 44% above median its 10-year median of 27.49 and 394.1% above the Travel & Leisure industry median of 8.00. Abhotel Co's overall GF Score™ is 84/100 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 Abhotel Co (NGO:6565), the current Operating Margin % is 39.53% 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 Abhotel Co (NGO:6565) Overvalued in 2026?
Based on GuruFocus' analysis, Abhotel Co stock appears to be undervalued.
The current stock price of 円1,412.00 is trading 28.7% below its estimated GF Value™ of 円1,980.87.
GuruFocus considers Abhotel Co to be Modestly Undervalued.
Key valuation signals for NGO:6565:
Operating Margin %: 39.53% (44% above median its 10-year median of 27.49)
GF Value™: 円1,980.87 vs. price of 円1,412.00 (28.7% below fair value)
Industry Position: 394.1% above the Travel & Leisure median (#26 of 842)
No single metric tells the full story. See the NGO:6565 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Abhotel Co Ltd is a Japan-based company, engages in the Hotel business. It operates a hotel with rooms, meals, facilities and services, and sightseeing. It offers various categories of rooms, such as Universal Twin Room, Deluxe Twin Room, Separate Semi Double Room, Separate Single Room, Double Room, and Single Room. Its room facilities include a minibar with rooms, in-room electronic safe lockers, laundry and dry cleaning, spa, health club, travel desk, shopping arcade, and others.
84GF Score
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Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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