Trip.com GroupWBO:CTRP +3.55%86 Operating Margin % is 25.17% as of Dec. 2025, which is 130% above its 10-year median of 10.95. GuruFocus rates WBO:CTRP with a GF Score™ of 86/100 and a GF Value™ of €69.66 (Significantly Undervalued). The stock has 2 warning signs investors should review. Among 844 Travel & Leisure companies, Trip.com Group ranks better than 90.64% on this metric.
Trip.com Group (WBO:CTRP) 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.
Trip.com Group Operating Margin % Related Terms
Trip.com Group Operating Margin % Historical Data
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The historical data trend for Trip.com Group'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.
WBO:CTRP vs EXPE, CCL, VIK: Operating Margin % Comparison
For the Travel Services subindustry, Trip.com Group'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.
Trip.com Group Operating Margin % vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Trip.com Group's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Trip.com Group'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.
Trip.com Group'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.
Trip.com Group (WBO:CTRP) has a Operating Margin % of 25.17% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Trip.com Group and its competitors. This is 130% above median its historical median of 10.95. According to the industry distribution chart, Trip.com Group ranks #79 out of 844 companies in the Travel & Leisure industry, placing it in the top 9.4%.
Is Trip.com Group's Operating Margin % too high?
Trip.com Group's current Operating Margin % of 25.17% is 130% above median its 10-year median of 10.95. The Travel & Leisure industry median Operating Margin % is 8.14. Trip.com Group's value of 25.17% is 209.4% above this industry median. Based on the distribution chart, Trip.com Group ranks #79 out of 844 companies in the Travel & Leisure industry, which is in the top quartile — a strong position relative to peers. Overall, Trip.com Group has a GF Score™ of 86/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Trip.com Group's Operating Margin % compare to EXPE and CCL?
According to the Travel & Leisure industry distribution chart, Trip.com Group ranks #79 out of 844 companies for Operating Margin %. This places Trip.com Group in the top 9% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 8.14. Trip.com Group's value of 25.17% is 209.4% above this benchmark. While the company's 10-year median is 10.95 vs. the industry median of 8.14, Trip.com Group 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. Trip.com Group's current Operating Margin % of 25.17% is 209.4% 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 Trip.com Group 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. Trip.com Group's current Operating Margin % is 25.17%, which is 130% above median its own 10-year median of 10.95. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Trip.com Group stock overvalued right now?
Based on GuruFocus' analysis, Trip.com Group (WBO:CTRP) is currently considered Significantly Undervalued. The stock's GF Value™ is €69.66, compared to a current price of €40.80 — trading 41.4% below its estimated fair value. The current Operating Margin % is 25.17%, which is 130% above median its 10-year median of 10.95 and 209.4% above the Travel & Leisure industry median of 8.14. Trip.com Group's overall GF Score™ is 86/100 with 2 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 Trip.com Group (WBO:CTRP), the current Operating Margin % is 25.17% 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 Trip.com Group (WBO:CTRP) Overvalued in 2026?
Based on GuruFocus' analysis, Trip.com Group stock appears to be undervalued.
The current stock price of €40.80 is trading 41.4% below its estimated GF Value™ of €69.66.
GuruFocus considers Trip.com Group to be Significantly Undervalued.
Key valuation signals for WBO:CTRP:
Operating Margin %: 25.17% (130% above median its 10-year median of 10.95)
GF Value™: €69.66 vs. price of €40.80 (41.4% below fair value)
Industry Position: 209.4% above the Travel & Leisure median (#79 of 844)
No single metric tells the full story. See the WBO:CTRP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Trip.com is the largest online travel agent in China and is positioned to benefit from the country's rising demand for higher-margin outbound travel as passport penetration is only 12% in China. The company generated about 79% of sales from accommodation reservations and transportation ticketing in 2024. The rest of revenue comes from package tours and corporate travel. Before the pandemic in 2019, the company generated 25% of revenue from international travel, which is important to its margin expansion. Most of sales come from its domestic platform, but the company is expanding its overseas business. The competes in a crowded OTA industry in China, including Meituan, Alibaba-backed Fliggy, Tongcheng, and Qunar. The company was founded in 1999 and listed on the Nasdaq in December 2003.
86GF Score
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