BSP:TELB3's Gross Margin % is ranked worse than 100% of 340
companies
in the Telecommunication Services industry
Industry Median: 51.825
vs BSP:TELB3: -35.04
Telecomunicacoes Brasileiras had a gross margin of -38.67% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Telecomunicacoes Brasileiras had a gross margin of -38.67% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Telecomunicacoes Brasileiras Gross Margin % Related Terms
Telecomunicacoes Brasileiras Gross 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.
BSP:TELB3 vs TMUS, VZ, T: Gross Margin % Comparison
For the Telecom Services subindustry, Telecomunicacoes Brasileiras's Gross Margin %, along with its competitors' market caps and Gross 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.
Telecomunicacoes Brasileiras Gross Margin % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Telecomunicacoes Brasileiras's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Telecomunicacoes Brasileiras's Gross 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.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Telecomunicacoes Brasileiras (BSP:TELB3) has a Gross Margin % of -38.67% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Telecomunicacoes Brasileiras and its competitors. According to the industry distribution chart, Telecomunicacoes Brasileiras ranks #340 out of 340 companies in the Telecommunication Services industry.
Is Telecomunicacoes Brasileiras' Gross Margin % too high?
Telecomunicacoes Brasileiras' current Gross Margin % is -38.67%. Based on the distribution chart, Telecomunicacoes Brasileiras ranks #340 out of 340 companies in the Telecommunication Services industry, which is in the bottom quartile relative to peers. Overall, Telecomunicacoes Brasileiras has a GF Score™ of 63/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Telecomunicacoes Brasileiras' Gross Margin % compare to TMUS and VZ?
According to the Telecommunication Services industry distribution chart, Telecomunicacoes Brasileiras ranks #340 out of 340 companies for Gross Margin %. This places Telecomunicacoes Brasileiras in the lower half of its industry. The industry median Gross Margin % is 51.83. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Telecommunication Services company?
The median Gross Margin % among Telecommunication Services companies is 51.83, based on 340 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Telecomunicacoes Brasileiras and its competitors. For the Telecommunication Services industry, the median Gross Margin % is 51.83 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Telecomunicacoes Brasileiras's current Gross Margin % is -38.67%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Telecomunicacoes Brasileiras stock overvalued right now?
Based on GuruFocus' analysis, Telecomunicacoes Brasileiras (BSP:TELB3) is currently considered Possible Value Trap. The stock's GF Value™ is R$14.82, compared to a current price of R$10.10 — trading 31.8% below its estimated fair value. The current Gross Margin % is -38.67%. Telecomunicacoes Brasileiras' 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 Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Telecomunicacoes Brasileiras (BSP:TELB3), the current Gross Margin % is -38.67% 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 Telecomunicacoes Brasileiras (BSP:TELB3) Overvalued in 2026?
Based on GuruFocus' analysis, Telecomunicacoes Brasileiras stock appears to be undervalued.
The current stock price of R$10.10 is trading 31.8% below its estimated GF Value™ of R$14.82.
GuruFocus considers Telecomunicacoes Brasileiras to be Possible Value Trap.
Key valuation signals for BSP:TELB3:
Gross Margin %: -38.67%
GF Value™: R$14.82 vs. price of R$10.10 (31.8% below fair value)
No single metric tells the full story. See the BSP:TELB3 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Telecomunicacoes Brasileiras SA is a Brazil-based company. Along with its subsidiaries, the firm offers telecommunication services in the areas of fixed line and mobile communication and internet access services. Its product portfolio includes IP (Internet Protocol) Telebras, Telebras Point-to-Point, and Telebras MPLS (Multiprotocol Label Switching) Network. The company also provides broadband services and infrastructure support services.
63GF Score
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Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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