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The Royal HotelTSE:9713 +0.44%58 Pretax Margin % is 5.99% as of Jun. 2026, which is 34% above its 10-year median of 4.48. GuruFocus rates TSE:9713 with a GF Score™ of 58/100 and a GF Value™ of 円1,058.41 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 840 Travel & Leisure companies, The Royal Hotel ranks worse than 66.31% on this metric.
The Royal Hotel (TSE:9713) 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.
The Royal Hotel Pretax Margin % Related Terms
The Royal Hotel Pretax Margin % Historical Data
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The historical data trend for The Royal Hotel'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.
TSE:9713 vs MAR, HLT, H: Pretax Margin % Comparison
For the Lodging subindustry, The Royal Hotel'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.
The Royal Hotel Pretax Margin % vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, The Royal Hotel's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where The Royal Hotel'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.
The Royal Hotel (TSE:9713) has a Pretax Margin % of 5.99% as of Jun. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on The Royal Hotel and its competitors. This is 34% above median its historical median of 4.48. According to the industry distribution chart, The Royal Hotel ranks #557 out of 840 companies in the Travel & Leisure industry, placing it in the top 66.3%.
Is The Royal Hotel's Pretax Margin % too high?
The Royal Hotel's current Pretax Margin % of 5.99% is 34% above median its 10-year median of 4.48. The Travel & Leisure industry median Pretax Margin % is 6.60. The Royal Hotel's value of 5.99% is 9.2% below this industry median. Based on the distribution chart, The Royal Hotel ranks #557 out of 840 companies in the Travel & Leisure industry, which is below the industry midpoint. Overall, The Royal Hotel has a GF Score™ of 58/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does The Royal Hotel's Pretax Margin % compare to MAR and HLT?
According to the Travel & Leisure industry distribution chart, The Royal Hotel ranks #557 out of 840 companies for Pretax Margin %. This places The Royal Hotel in the lower half of its industry. The industry median Pretax Margin % is 6.60. The Royal Hotel's value of 5.99% is 9.2% below this benchmark. While the company's 10-year median is 4.48 vs. the industry median of 6.60, 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 Pretax Margin % for a Travel & Leisure company?
The median Pretax Margin % among Travel & Leisure companies is 6.60, based on 840 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. The Royal Hotel's current Pretax Margin % of 5.99% is 9.2% 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 The Royal Hotel and its competitors. For the Travel & Leisure industry, the median Pretax Margin % is 6.60 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Royal Hotel's current Pretax Margin % is 5.99%, which is 34% above median its own 10-year median of 4.48. 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1,058.41, compared to a current price of 円920.00 — trading 13.1% below its estimated fair value. The current Pretax Margin % is 5.99%, which is 34% above median its 10-year median of 4.48 and 9.2% below the Travel & Leisure industry median of 6.60. The Royal Hotel's overall GF Score™ is 58/100 with 5 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 The Royal Hotel (TSE:9713), the current Pretax Margin % is 5.99% 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 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920.00 is trading 13.1% below its estimated GF Value™ of 円1,058.41.
GuruFocus considers The Royal Hotel to be Modestly Undervalued.
Key valuation signals for TSE:9713:
Pretax Margin %: 5.99% (34% above median its 10-year median of 4.48)
GF Value™: 円1,058.41 vs. price of 円920.00 (13.1% below fair value)
Industry Position: 9.2% below the Travel & Leisure median (#557 of 840)
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.
58GF Score
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