China Travel International Investment Hong Kong (STU:CTI) 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.
China Travel International Investment Hong Kong Operating Margin % Related Terms
China Travel International Investment Hong Kong 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.
China Travel International Investment Hong Kong Operating Margin % Chart
China Travel International Investment Hong Kong Annual Data
STU:CTI vs AS, HAS, LTH: Operating Margin % Comparison
For the Leisure subindustry, China Travel International Investment Hong Kong'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.
China Travel International Investment Hong Kong Operating Margin % vs Travel & Leisure Industry
China Travel International Investment Hong Kong 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.
China Travel International Investment Hong Kong (STU:CTI) has a Operating Margin % of 12.11% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on China Travel International Investment Hong Kong and its competitors. This is 37% above median its historical median of 8.87. According to the industry distribution chart, China Travel International Investment Hong Kong ranks #442 out of 844 companies in the Travel & Leisure industry, placing it in the top 52.4%.
Is China Travel International Investment Hong Kong's Operating Margin % too high?
China Travel International Investment Hong Kong's current Operating Margin % of 12.11% is 37% above median its 10-year median of 8.87. The Travel & Leisure industry median Operating Margin % is 8.14. China Travel International Investment Hong Kong's value of 12.11% is 48.9% above this industry median. Based on the distribution chart, China Travel International Investment Hong Kong ranks #442 out of 844 companies in the Travel & Leisure industry, which is below the industry midpoint. Overall, China Travel International Investment Hong Kong has a GF Score™ of 61/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does China Travel International Investment Hong Kong's Operating Margin % compare to AS and HAS?
According to the Travel & Leisure industry distribution chart, China Travel International Investment Hong Kong ranks #442 out of 844 companies for Operating Margin %. This places China Travel International Investment Hong Kong in the lower half of its industry. The industry median Operating Margin % is 8.14. China Travel International Investment Hong Kong's value of 12.11% is 48.9% above this benchmark. While the company's 10-year median is 8.87 vs. the industry median of 8.14, China Travel International Investment Hong Kong 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. China Travel International Investment Hong Kong's current Operating Margin % of 12.11% is 48.9% 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 China Travel International Investment Hong Kong 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. China Travel International Investment Hong Kong's current Operating Margin % is 12.11%, which is 37% above median its own 10-year median of 8.87. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Travel International Investment Hong Kong stock overvalued right now?
Based on GuruFocus' analysis, China Travel International Investment Hong Kong (STU:CTI) is currently considered Modestly Undervalued. The stock's GF Value™ is €0.15, compared to a current price of €0.11 — trading 27.3% below its estimated fair value. The current Operating Margin % is 12.11%, which is 37% above median its 10-year median of 8.87 and 48.9% above the Travel & Leisure industry median of 8.14. China Travel International Investment Hong Kong's overall GF Score™ is 61/100 with 6 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 China Travel International Investment Hong Kong (STU:CTI), the current Operating Margin % is 12.11% 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 China Travel International Investment Hong Kong (STU:CTI) Overvalued in 2026?
Based on GuruFocus' analysis, China Travel International Investment Hong Kong stock appears to be undervalued.
The current stock price of €0.11 is trading 27.3% below its estimated GF Value™ of €0.15.
GuruFocus considers China Travel International Investment Hong Kong to be Modestly Undervalued.
Key valuation signals for STU:CTI:
Operating Margin %: 12.11% (37% above median its 10-year median of 8.87)
GF Value™: €0.15 vs. price of €0.11 (27.3% below fair value)
Industry Position: 48.9% above the Travel & Leisure median (#442 of 844)
No single metric tells the full story. See the STU:CTI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Travel International Investment Hong Kong Business Description
China Travel International Investment Hong Kong Ltd is a holding company focused on leisure investments. The company has four primary divisions: travel document and related operations, tourist attractions and related operations, hotel operations, and passenger transportation operations. The company derives revenue from its travel agency, tourist attraction, and hotel operations. Travel agency and related operations include the company's travel agency and travel document businesses. Tourist attraction operations, which comprise the majority portion of the company's revenue, include theme parks, resorts, and scenic destinations. Hotel operations include hotel accommodation, food, and beverage services. The company generates the vast majority of revenue in Hong Kong and mainland China.
61GF 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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