H World GroupMEX:HTHTN 83 Pretax Margin % is 21.48% as of Mar. 2026, which is 22% above its 10-year median of 17.67. GuruFocus rates MEX:HTHTN with a GF Score™ of 83/100 and a GF Value™ of MXN631.09. The stock has 1 warning sign investors should review. Among 845 Travel & Leisure companies, H World Group ranks better than 88.99% on this metric.
Pre-Tax margin is calculated as Pre-Tax Income divided by its Revenue. H World Group's Pre-Tax Income for the
three
months ended in Mar. 2026 was MXN3,370 Mil. H World Group's Revenue for the
three
months ended in Mar. 2026 was MXN15,688 Mil. Therefore, H World Group's pretax margin for the quarter that ended in Mar. 2026 was 21.48%.
The historical rank and industry rank for H World Group's Pretax Margin % or its related term are showing as below:
MEX:HTHTN'
s Pretax Margin % Range Over the Past 10 Years
Min: -22.35 Med: 17.67 Max: 28.85
Current: 28.17
MEX:HTHTN's Pretax Margin % is ranked better than 88.99% of 845
companies
in the Travel & Leisure industry
Industry Median: 6.11
vs MEX:HTHTN: 28.17
H World Group (MEX:HTHTN) 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.
H World Group Pretax Margin % Related Terms
H World Group Pretax Margin % Historical Data
* Premium members only.
The historical data trend for H World Group's Pretax 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.
MEX:HTHTN vs H, WH, CHH: Pretax Margin % Comparison
For the Lodging subindustry, H World Group'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.
H World Group Pretax Margin % vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, H World Group's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where H World Group'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.
H World Group (MEX:HTHTN) has a Pretax Margin % of 21.48% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on H World Group and its competitors. This is 22% above median its historical median of 17.67. According to the industry distribution chart, H World Group ranks #93 out of 845 companies in the Travel & Leisure industry, placing it in the top 11%.
Is H World Group's Pretax Margin % too high?
H World Group's current Pretax Margin % of 21.48% is 22% above median its 10-year median of 17.67. The Travel & Leisure industry median Pretax Margin % is 6.11. H World Group's value of 21.48% is 251.6% above this industry median. Based on the distribution chart, H World Group ranks #93 out of 845 companies in the Travel & Leisure industry, which is in the top quartile — a strong position relative to peers. Overall, H World Group has a GF Score™ of 83/100, reflecting its overall financial health beyond just this single metric.
How does H World Group's Pretax Margin % compare to H and WH?
According to the Travel & Leisure industry distribution chart, H World Group ranks #93 out of 845 companies for Pretax Margin %. This places H World Group in the top 11% of its industry — outperforming the majority of peers. The industry median Pretax Margin % is 6.11. H World Group's value of 21.48% is 251.6% above this benchmark. While the company's 10-year median is 17.67 vs. the industry median of 6.11, H World 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 Pretax Margin % for a Travel & Leisure company?
The median Pretax Margin % among Travel & Leisure companies is 6.11, based on 845 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. H World Group's current Pretax Margin % of 21.48% is 251.6% 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 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 H World Group and its competitors. For the Travel & Leisure industry, the median Pretax Margin % is 6.11 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. H World Group's current Pretax Margin % is 21.48%, which is 22% above median its own 10-year median of 17.67. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is H World Group stock overvalued right now?
H World Group (MEX:HTHTN) has a current Pretax Margin % of 21.48%. The stock's GF Value™ is MXN631.09, compared to a current price of MXN577.00 — trading 8.6% below its estimated fair value. The current Pretax Margin % is 21.48%, which is 22% above median its 10-year median of 17.67 and 251.6% above the Travel & Leisure industry median of 6.11. H World Group's overall GF Score™ is 83/100 with 1 warning sign 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 H World Group (MEX:HTHTN), the current Pretax Margin % is 21.48% 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 H World Group (MEX:HTHTN) Overvalued in 2026?
Based on GuruFocus' analysis, H World Group stock appears to be undervalued.
The current stock price of MXN577.00 is trading 8.6% below its estimated GF Value™ of MXN631.09.
Key valuation signals for MEX:HTHTN:
Pretax Margin %: 21.48% (22% above median its 10-year median of 17.67)
GF Value™: MXN631.09 vs. price of MXN577.00 (8.6% below fair value)
Industry Position: 251.6% above the Travel & Leisure median (#93 of 845)
No single metric tells the full story. See the MEX:HTHTN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
H World Group Ltd a foremost, fast-growing multi-brand hotel group with international operations. The principal business activities of the Company are to develop and operate leased and owned, manachised and franchised hotels mainly in the PRC or PRC Mainland. The Group has two operating segments which are legacy Huazhu and legacy DH according to the way management intends to evaluate results and allocate resources within the Group. The majority of revenue comes from legacy Huazhu. The company has presence in Greater China and also Outside Greater China.
83GF Score
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