freenet AGFRTAY 70 Gross Margin % is 32.66% as of Mar. 2026, which is 5% below its 10-year median of 34.30. GuruFocus rates FRTAY with a GF Score™ of 70/100 and a GF Value™ of $17.57 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 342 Telecommunication Services companies, freenet AG ranks worse than 64.04% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. freenet AG's Gross Profit for the
three
months ended in Mar. 2026 was $288 Mil. freenet AG's Revenue for the
three
months ended in Mar. 2026 was $881 Mil. Therefore, freenet AG's Gross Margin % for the quarter that ended in Mar. 2026 was 32.66%.
The historical rank and industry rank for freenet AG's Gross Margin % or its related term are showing as below:
FRTAY'
s Gross Margin % Range Over the Past 10 Years
Min: 27.29 Med: 34.3 Max: 41.1
Current: 38.84
During the past 13 years, the highestGross Margin % of freenet AG was 41.10%. The lowest was 27.29%. And the median was 34.30%.
FRTAY's Gross Margin % is ranked worse than 64.04% of 342
companies
in the Telecommunication Services industry
Industry Median: 51.415
vs FRTAY: 38.84
freenet AG had a gross margin of 32.66% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for freenet AG was 4.40% per year.
freenet AG (OTCPK:FRTAY) Gross Margin % Explanation
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
freenet AG had a gross margin of 32.66% for the quarter that ended in Mar. 2026 => Competition eroding margins
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.
freenet AG Gross Margin % Related Terms
freenet AG Gross Margin % Historical Data
* Premium members only.
The historical data trend for freenet AG's Gross 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.
For the Telecom Services subindustry, freenet AG'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.
freenet AG Gross Margin % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, freenet AG's Gross Margin % distribution charts can be found below:
* The bar in red indicates where freenet AG'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.
freenet AG (FRTAY) has a Gross Margin % of 32.66% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on freenet AG and its competitors. This is near median its historical median of 34.30. Over the past decade, freenet AG's Gross Margin % has ranged from 27.29 to 41.10. According to the industry distribution chart, freenet AG ranks #219 out of 342 companies in the Telecommunication Services industry, placing it in the top 64%.
Is freenet AG's Gross Margin % too high?
freenet AG's current Gross Margin % of 32.66% is near median its 10-year median of 34.30. Over the past 10 years, this metric has ranged from a low of 27.29 to a high of 41.10. The Telecommunication Services industry median Gross Margin % is 51.42. freenet AG's value of 32.66% is 36.5% below this industry median. Based on the distribution chart, freenet AG ranks #219 out of 342 companies in the Telecommunication Services industry, which is below the industry midpoint. Overall, freenet AG has a GF Score™ of 70/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does freenet AG's Gross Margin % compare to TMUS and VZ?
According to the Telecommunication Services industry distribution chart, freenet AG ranks #219 out of 342 companies for Gross Margin %. This places freenet AG in the lower half of its industry. The industry median Gross Margin % is 51.42. freenet AG's value of 32.66% is 36.5% below this benchmark. Historically, freenet AG's own Gross Margin % has ranged from 27.29 to 41.10 over the past decade. While the company's 10-year median is 34.30 vs. the industry median of 51.42, freenet AG 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 Gross Margin % for a Telecommunication Services company?
The median Gross Margin % among Telecommunication Services companies is 51.42, based on 342 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. freenet AG's current Gross Margin % of 32.66% is 36.5% 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 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 freenet AG and its competitors. For the Telecommunication Services industry, the median Gross Margin % is 51.42 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. freenet AG's current Gross Margin % is 32.66%, which is near median its own 10-year median of 34.30. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is freenet AG stock overvalued right now?
Based on GuruFocus' analysis, freenet AG (FRTAY) is currently considered Modestly Undervalued. The stock's GF Value™ is $17.57, compared to a current price of $13.75 — trading 21.7% below its estimated fair value. The current Gross Margin % is 32.66%, which is near median its 10-year median of 34.30 and 36.5% below the Telecommunication Services industry median of 51.42. freenet AG's overall GF Score™ is 70/100 with 3 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 freenet AG (FRTAY), the current Gross Margin % is 32.66% 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 freenet AG (FRTAY) Overvalued in 2026?
Based on GuruFocus' analysis, freenet AG stock appears to be undervalued.
The current stock price of $13.75 is trading 21.7% below its estimated GF Value™ of $17.57.
GuruFocus considers freenet AG to be Modestly Undervalued.
Key valuation signals for FRTAY:
Gross Margin %: 32.66% (near median its 10-year median of 34.30)
GF Value™: $17.57 vs. price of $13.75 (21.7% below fair value)
Industry Position: 36.5% below the Telecommunication Services median (#219 of 342)
No single metric tells the full story. See the FRTAY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
freenet AG is a German mobile communication and mobile internet company. It operates as an independent service provider without its own network. The company distributes mobile communications tariffs and options throughout Germany, using a subscription agreement and multi-brand technique. The company has three operating segments: Mobile communications, TV and media, and Other/holding. The Mobile communications segment generates the majority of the firm's revenue. This segment offers a product portfolio of voice and data services for mobile communication operators. It also buys mobile communications services from the network operators and sells them to its end customers.
70GF Score
Get the complete analysis for FRTAY
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
FRTAY has been successfully added to your 
