The Royal HotelTSE:9713 +0.22%63 Operating Margin % is 4.25% as of Mar. 2026, which is 34% above its 10-year median of 3.17. GuruFocus rates TSE:9713 with a GF Score™ of 63/100 and a GF Value™ of 円1,208.33 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 844 Travel & Leisure companies, The Royal Hotel ranks worse than 63.27% on this metric.
The Royal Hotel (TSE:9713) 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.
The Royal Hotel Operating Margin % Related Terms
The Royal Hotel Operating Margin % Historical Data
* Premium members only.
The historical data trend for The Royal 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.
TSE:9713 vs MAR, HLT, H: Operating Margin % Comparison
For the Lodging subindustry, The Royal 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.
The Royal Hotel Operating Margin % vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, The Royal Hotel's Operating Margin % distribution charts can be found below:
* The bar in red indicates where The Royal Hotel'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.
The Royal Hotel'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.
The Royal Hotel (TSE:9713) has a Operating Margin % of 4.25% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on The Royal Hotel and its competitors. This is 34% above median its historical median of 3.17. According to the industry distribution chart, The Royal Hotel ranks #534 out of 844 companies in the Travel & Leisure industry, placing it in the top 63.3%.
Is The Royal Hotel's Operating Margin % too high?
The Royal Hotel's current Operating Margin % of 4.25% is 34% above median its 10-year median of 3.17. The Travel & Leisure industry median Operating Margin % is 8.14. The Royal Hotel's value of 4.25% is 47.8% below this industry median. Based on the distribution chart, The Royal Hotel ranks #534 out of 844 companies in the Travel & Leisure industry, which is below the industry midpoint. Overall, The Royal Hotel has a GF Score™ of 63/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does The Royal Hotel's Operating Margin % compare to MAR and HLT?
According to the Travel & Leisure industry distribution chart, The Royal Hotel ranks #534 out of 844 companies for Operating Margin %. This places The Royal Hotel in the lower half of its industry. The industry median Operating Margin % is 8.14. The Royal Hotel's value of 4.25% is 47.8% below this benchmark. While the company's 10-year median is 3.17 vs. the industry median of 8.14, The Royal Hotel has consistently been below 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. The Royal Hotel's current Operating Margin % of 4.25% is 47.8% 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 The Royal 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. The Royal Hotel's current Operating Margin % is 4.25%, which is 34% above median its own 10-year median of 3.17. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is The Royal Hotel stock overvalued right now?
Based on GuruFocus' analysis, The Royal Hotel (TSE:9713) is currently considered Modestly Undervalued. The stock's GF Value™ is 円1,208.33, compared to a current price of 円893.00 — trading 26.1% below its estimated fair value. The current Operating Margin % is 4.25%, which is 34% above median its 10-year median of 3.17 and 47.8% below the Travel & Leisure industry median of 8.14. The Royal Hotel's overall GF Score™ is 63/100 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 The Royal Hotel (TSE:9713), the current Operating Margin % is 4.25% 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 The Royal Hotel (TSE:9713) Overvalued in 2026?
Based on GuruFocus' analysis, The Royal Hotel stock appears to be undervalued.
The current stock price of 円893.00 is trading 26.1% below its estimated GF Value™ of 円1,208.33.
GuruFocus considers The Royal Hotel to be Modestly Undervalued.
Key valuation signals for TSE:9713:
Operating Margin %: 4.25% (34% above median its 10-year median of 3.17)
GF Value™: 円1,208.33 vs. price of 円893.00 (26.1% below fair value)
Industry Position: 47.8% below the Travel & Leisure median (#534 of 844)
No single metric tells the full story. See the TSE:9713 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
The Royal Hotel Ltd is a Japanese company engaged in the hotel industry. The company is a hotel operator providing accommodation, dining, and spa facilities. The company has developed eleven hotels around Hiroshima, Tokyo, and Kyoto.
63GF Score
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