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Diamondrock Hospitality CoFRA:HBO +2.70%65 Pretax Margin % is 29.04% as of Jun. 2026, which is 198% above its 10-year median of 9.76. GuruFocus rates FRA:HBO with a GF Score™ of 65/100 and a GF Value™ of €7.93 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 916 REITs companies, Diamondrock Hospitality Co ranks worse than 75% on this metric.
Diamondrock Hospitality Co (FRA:HBO) Pretax Margin % Explanation
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
Diamondrock Hospitality Co Pretax Margin % Related Terms
Diamondrock Hospitality Co Pretax 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.
FRA:HBO vs PK, SHO, PEB: Pretax Margin % Comparison
For the REIT - Hotel & Motel subindustry, Diamondrock Hospitality Co's Pretax Margin %, along with its competitors' market caps and Pretax 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.
Diamondrock Hospitality Co Pretax Margin % vs REITs Industry
For the REITs industry and Real Estate sector, Diamondrock Hospitality Co's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Diamondrock Hospitality Co's Pretax Margin % falls into.
* 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.
Diamondrock Hospitality Co (FRA:HBO) has a Pretax Margin % of 29.04% as of Jun. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Diamondrock Hospitality Co and its competitors. This is 198% above median its historical median of 9.76. According to the industry distribution chart, Diamondrock Hospitality Co ranks #687 out of 916 companies in the REITs industry, placing it in the top 75%.
Is Diamondrock Hospitality Co's Pretax Margin % too high?
Diamondrock Hospitality Co's current Pretax Margin % of 29.04% is 198% above median its 10-year median of 9.76. The REITs industry median Pretax Margin % is 47.34. Diamondrock Hospitality Co's value of 29.04% is 38.7% below this industry median. Based on the distribution chart, Diamondrock Hospitality Co ranks #687 out of 916 companies in the REITs industry, which is below the industry midpoint. Overall, Diamondrock Hospitality Co has a GF Score™ of 65/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Diamondrock Hospitality Co's Pretax Margin % compare to PK and SHO?
According to the REITs industry distribution chart, Diamondrock Hospitality Co ranks #687 out of 916 companies for Pretax Margin %. This places Diamondrock Hospitality Co in the lower half of its industry. The industry median Pretax Margin % is 47.34. Diamondrock Hospitality Co's value of 29.04% is 38.7% below this benchmark. While the company's 10-year median is 9.76 vs. the industry median of 47.34, Diamondrock Hospitality Co 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 Pretax Margin % for a REITs company?
The median Pretax Margin % among REITs companies is 47.34, based on 916 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Diamondrock Hospitality Co's current Pretax Margin % of 29.04% is 38.7% 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 Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Diamondrock Hospitality Co and its competitors. For the REITs industry, the median Pretax Margin % is 47.34 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Diamondrock Hospitality Co's current Pretax Margin % is 29.04%, which is 198% above median its own 10-year median of 9.76. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Diamondrock Hospitality Co stock overvalued right now?
Based on GuruFocus' analysis, Diamondrock Hospitality Co (FRA:HBO) is currently considered Significantly Overvalued. The stock's GF Value™ is €7.93, compared to a current price of €11.40 — trading 43.8% above its estimated fair value. The current Pretax Margin % is 29.04%, which is 198% above median its 10-year median of 9.76 and 38.7% below the REITs industry median of 47.34. Diamondrock Hospitality Co's overall GF Score™ is 65/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For Diamondrock Hospitality Co (FRA:HBO), the current Pretax Margin % is 29.04% as of Jun. 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 Diamondrock Hospitality Co (FRA:HBO) Overvalued in 2026?
Based on GuruFocus' analysis, Diamondrock Hospitality Co stock appears to be overvalued.
The current stock price of €11.40 is trading 43.8% above its estimated GF Value™ of €7.93.
GuruFocus considers Diamondrock Hospitality Co to be Significantly Overvalued.
Key valuation signals for FRA:HBO:
Pretax Margin %: 29.04% (198% above median its 10-year median of 9.76)
GF Value™: €7.93 vs. price of €11.40 (43.8% above fair value)
Industry Position: 38.7% below the REITs median (#687 of 916)
No single metric tells the full story. See the FRA:HBO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Diamondrock Hospitality Company is a real estate investment trust that owns lodging properties. Its business is to acquire, own, manage, and renovate full-service hotel properties in the United States. It operates in cities such as Chicago, Boston, New York, Denver, and others. Within DiamondRock's holdings, the majority of the hotel brands include Marriott, Starwood, and Hilton. The company operates in one reportable segment: The hotel ownership segment, which is comprised of upper upscale and luxury chain scale hotels that offer hotel rooms, food and beverage and other ancillary guest services.
65GF Score
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