Travel+Leisure CoSTU:WD5A +1.54%81 Operating Margin % is 16.34% as of Mar. 2026, which is 15% below its 10-year median of 19.16. GuruFocus rates STU:WD5A with a GF Score™ of 81/100 and a GF Value™ of €49.57. The stock has 8 warning signs investors should review. Among 844 Travel & Leisure companies, Travel+Leisure Co ranks better than 67.18% on this metric.
Travel+Leisure Co (STU:WD5A) 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.
Travel+Leisure Co Operating Margin % Related Terms
Travel+Leisure Co Operating Margin % Historical Data
* Premium members only.
The historical data trend for Travel+Leisure 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.
STU:WD5A vs MMYT, GBTG, LIND: Operating Margin % Comparison
For the Travel Services subindustry, Travel+Leisure 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.
Travel+Leisure Co Operating Margin % vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Travel+Leisure Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Travel+Leisure 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.
Travel+Leisure Co'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.
Travel+Leisure Co (STU:WD5A) has a Operating Margin % of 16.34% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Travel+Leisure Co and its competitors. This is 15% below median its historical median of 19.16. Over the past decade, Travel+Leisure Co's Operating Margin % has ranged from 3.43 to 20.41. According to the industry distribution chart, Travel+Leisure Co ranks #277 out of 844 companies in the Travel & Leisure industry, placing it in the top 32.8%.
Is Travel+Leisure Co's Operating Margin % too high?
Travel+Leisure Co's current Operating Margin % of 16.34% is 15% below median its 10-year median of 19.16. Over the past 10 years, this metric has ranged from a low of 3.43 to a high of 20.41. The Travel & Leisure industry median Operating Margin % is 8.14. Travel+Leisure Co's value of 16.34% is 100.9% above this industry median. Based on the distribution chart, Travel+Leisure Co ranks #277 out of 844 companies in the Travel & Leisure industry, which is above the industry midpoint. Overall, Travel+Leisure Co has a GF Score™ of 81/100, reflecting its overall financial health beyond just this single metric.
How does Travel+Leisure Co's Operating Margin % compare to MMYT and GBTG?
According to the Travel & Leisure industry distribution chart, Travel+Leisure Co ranks #277 out of 844 companies for Operating Margin %. This puts Travel+Leisure Co in the upper half of its industry. The industry median Operating Margin % is 8.14. Travel+Leisure Co's value of 16.34% is 100.9% above this benchmark. Historically, Travel+Leisure Co's own Operating Margin % has ranged from 3.43 to 20.41 over the past decade. While the company's 10-year median is 19.16 vs. the industry median of 8.14, Travel+Leisure 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 8.14, 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. Travel+Leisure Co's current Operating Margin % of 16.34% is 100.9% 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 Travel+Leisure Co 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. Travel+Leisure Co's current Operating Margin % is 16.34%, which is 15% below median its own 10-year median of 19.16. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Travel+Leisure Co stock overvalued right now?
Travel+Leisure Co (STU:WD5A) has a current Operating Margin % of 16.34%. The stock's GF Value™ is €49.57, compared to a current price of €66.00 — trading 33.1% above its estimated fair value. The current Operating Margin % is 16.34%, which is 15% below median its 10-year median of 19.16 and 100.9% above the Travel & Leisure industry median of 8.14. Travel+Leisure Co's overall GF Score™ is 81/100 with 8 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 Travel+Leisure Co (STU:WD5A), the current Operating Margin % is 16.34% 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 Travel+Leisure Co (STU:WD5A) Overvalued in 2026?
Based on GuruFocus' analysis, Travel+Leisure Co stock appears to be overvalued.
The current stock price of €66.00 is trading 33.1% above its estimated GF Value™ of €49.57.
Key valuation signals for STU:WD5A:
Operating Margin %: 16.34% (15% below median its 10-year median of 19.16)
GF Value™: €49.57 vs. price of €66.00 (33.1% above fair value)
Industry Position: 100.9% above the Travel & Leisure median (#277 of 844)
No single metric tells the full story. See the STU:WD5A stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Travel+Leisure Co is a membership and leisure travel company. It provides hospitality services and travel products. The company operates in the segments of Vacation Ownership, which is the key revenue-driving segment, develops, markets and sells vacation ownership interests (VOIs) to individual consumers, provides consumer financing in connection with the sale of VOIs, and provides property management services at resorts, and Travel and Membership which operates a variety of travel businesses, including two vacation exchange brands, Vacation Ownership and Travel and Membership The majority of the revenue is earned from the United States.
81GF Score
Get the complete analysis for STU:WD5A
Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
STU:WD5A has been successfully added to your 
