Ambassador Hotel (TPE:2704) Operating Margin %: 0.59% (As of Dec. 2025)


TPE:2704 Ambassador Hotel Ltd TPE:2704
71 GF Score
Price NT$45.50
GF Value NT$48.83
Valuation Fairly Valued
! 5 Warning Signs
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What is Ambassador Hotel Operating Margin %?

Ambassador Hotel TPE:2704 +0.55% 71 Operating Margin % is 0.59% as of Dec. 2025. GuruFocus rates TPE:2704 with a GF Score™ of 71/100 and a GF Value™ of NT$48.83 (Fairly Valued). The stock has 5 warning signs investors should review. Among 844 Travel & Leisure companies, Ambassador Hotel ranks worse than 74.17% on this metric.

Operating Margin % is calculated as Operating Income divided by its Revenue. Ambassador Hotel's Operating Income for the three months ended in Dec. 2025 was NT$2 Mil. Ambassador Hotel's Revenue for the three months ended in Dec. 2025 was NT$362 Mil. Therefore, Ambassador Hotel's Operating Margin % for the quarter that ended in Dec. 2025 was 0.59%.

Good Sign:

Ambassador Hotel Ltd operating margin is expanding. Margin expansion is usually a good sign.

The historical rank and industry rank for Ambassador Hotel's Operating Margin % or its related term are showing as below:

TPE:2704' s Operating Margin % Range Over the Past 10 Years
Min: -50.76   Med: -1.77   Max: 13.55
Current: -1.09


TPE:2704's Operating Margin % is ranked worse than
74.17% of 844 companies
in the Travel & Leisure industry
Industry Median: 8.135 vs TPE:2704: -1.09

Ambassador Hotel's 5-Year Average Operating Margin % Growth Rate was 44.40% per year.

Ambassador Hotel's Operating Income for the three months ended in Dec. 2025 was NT$2 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2025 was NT$-15 Mil.


Ambassador Hotel  (TPE:2704) 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 Nokia’s 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.


Ambassador Hotel Operating Margin % Related Terms


Ambassador Hotel Operating Margin % Historical Data

* Premium members only.

The historical data trend for Ambassador Hotel'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.

Ambassador Hotel Operating Margin % Chart

Ambassador Hotel Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -24.55 -50.76 -19.97 -2.45 -1.09

Ambassador Hotel Quarterly Data
Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25
Operating Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -8.00 8.98 -0.20 -16.01 0.59

TPE:2704 vs MAR, HLT, H: Operating Margin % Comparison

For the Lodging subindustry, Ambassador Hotel'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.


Ambassador Hotel Operating Margin % vs Travel & Leisure Industry

For the Travel & Leisure industry and Consumer Cyclical sector, Ambassador Hotel's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Ambassador Hotel's Operating Margin % falls into.


TPE:2704
71GF Score
Ambassador Hotel Ltd TPE:2704
Operating Margin % is just one metric. See GF Score™, valuation, warning signs, and more.
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Ambassador Hotel 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.

Ambassador Hotel's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as

Operating Margin %=Operating Income (A: Dec. 2025 ) / Revenue (A: Dec. 2025 )
=-14.806 / 1357.085
=-1.09 %

Ambassador Hotel's Operating Margin % for the quarter that ended in Dec. 2025 is calculated as

Operating Margin %=Operating Income (Q: Dec. 2025 ) / Revenue (Q: Dec. 2025 )
=2.147 / 362.181
=0.59 %

* 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.

Frequently Asked Questions Learn more about Operating Margin % →
What does a Operating Margin % of 0.59% mean?
Ambassador Hotel (TPE:2704) has a Operating Margin % of 0.59% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Ambassador Hotel and its competitors. According to the industry distribution chart, Ambassador Hotel ranks #626 out of 844 companies in the Travel & Leisure industry, placing it in the top 74.2%.
Is Ambassador Hotel's Operating Margin % too high?
Ambassador Hotel's current Operating Margin % is 0.59%. The Travel & Leisure industry median Operating Margin % is 8.14. Ambassador Hotel's value of 0.59% is 92.7% below this industry median. Based on the distribution chart, Ambassador Hotel ranks #626 out of 844 companies in the Travel & Leisure industry, which is below the industry midpoint. Overall, Ambassador Hotel has a GF Score™ of 71/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Ambassador Hotel's Operating Margin % compare to MAR and HLT?
According to the Travel & Leisure industry distribution chart, Ambassador Hotel ranks #626 out of 844 companies for Operating Margin %. This places Ambassador Hotel in the lower half of its industry. The industry median Operating Margin % is 8.14. Ambassador Hotel's value of 0.59% is 92.7% below this benchmark. 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. Ambassador Hotel's current Operating Margin % of 0.59% is 92.7% below 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 Ambassador Hotel 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. Ambassador Hotel's current Operating Margin % is 0.59%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ambassador Hotel stock overvalued right now?
Based on GuruFocus' analysis, Ambassador Hotel (TPE:2704) is currently considered Fairly Valued. The stock's GF Value™ is NT$48.83, compared to a current price of NT$45.50 — trading 6.8% below its estimated fair value. The current Operating Margin % is 0.59% and 92.7% below the Travel & Leisure industry median of 8.14. Ambassador Hotel's overall GF Score™ is 71/100 with 5 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 Ambassador Hotel (TPE:2704), the current Operating Margin % is 0.59% 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 Ambassador Hotel (TPE:2704) Overvalued in 2026?

Based on GuruFocus' analysis, Ambassador Hotel stock appears to be undervalued. The current stock price of NT$45.50 is trading 6.8% below its estimated GF Value™ of NT$48.83. GuruFocus considers Ambassador Hotel to be Fairly Valued.

Key valuation signals for TPE:2704:

  • Operating Margin %: 0.59%
  • GF Value™: NT$48.83 vs. price of NT$45.50 (6.8% below fair value)
  • GF Score™: 71/100 with 5 warning signs
  • Industry Position: 92.7% below the Travel & Leisure median (#626 of 844)

No single metric tells the full story. See the TPE:2704 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Ambassador Hotel Business Description

Address Zhongshan North Road, No. 9, Lane 65, Section 2, Zhongshan District, Taipei, TWN, 104204
Ambassador Hotel Ltd is engaged in the operation of international tourist hotels and attached restaurants, cafe, lounge bars and clubs. The company provides accommodation and foodservice related products. The company has three segment: Kaohsiung segment, Hsinchu segment, and Taipei segment. The company generates key revenue from Hsinchu segment. Hsinchu segment is responsible for the foodservice and accommodation in Hsinchu area.
71GF Score

Get the complete analysis for TPE:2704

Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

NT$45.50
Price
NT$48.83
GF Value