Alcatel Lucent Teletas Telekomunikasyon AS (IST:ALCTL) 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
Alcatel Lucent Teletas Telekomunikasyon AS had a gross margin of 25.01% for the quarter that ended in Dec. 2025 => 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.
Alcatel Lucent Teletas Telekomunikasyon AS Gross Margin % Related Terms
Alcatel Lucent Teletas Telekomunikasyon AS 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.
Alcatel Lucent Teletas Telekomunikasyon AS Gross Margin % Chart
Alcatel Lucent Teletas Telekomunikasyon AS Annual Data
IST:ALCTL vs CSCO, CIEN, MSI: Gross Margin % Comparison
For the Communication Equipment subindustry, Alcatel Lucent Teletas Telekomunikasyon AS'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.
Alcatel Lucent Teletas Telekomunikasyon AS Gross Margin % vs Hardware Industry
* 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.
Alcatel Lucent Teletas Telekomunikasyon AS (IST:ALCTL) has a Gross Margin % of 25.01% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Alcatel Lucent Teletas Telekomunikasyon AS and its competitors. This is 79% above median its historical median of 13.98. Over the past decade, Alcatel Lucent Teletas Telekomunikasyon AS's Gross Margin % has ranged from 3.53 to 25.68. According to the industry distribution chart, Alcatel Lucent Teletas Telekomunikasyon AS ranks #1727 out of 2450 companies in the Hardware industry, placing it in the top 70.5%.
Is Alcatel Lucent Teletas Telekomunikasyon AS's Gross Margin % too high?
Alcatel Lucent Teletas Telekomunikasyon AS's current Gross Margin % of 25.01% is 79% above median its 10-year median of 13.98. Over the past 10 years, this metric has ranged from a low of 3.53 to a high of 25.68. The Hardware industry median Gross Margin % is 24.53. Alcatel Lucent Teletas Telekomunikasyon AS's value of 25.01% is 2% above this industry median. Based on the distribution chart, Alcatel Lucent Teletas Telekomunikasyon AS ranks #1727 out of 2450 companies in the Hardware industry, which is below the industry midpoint. Overall, Alcatel Lucent Teletas Telekomunikasyon AS has a GF Score™ of 63/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Alcatel Lucent Teletas Telekomunikasyon AS's Gross Margin % compare to CSCO and CIEN?
According to the Hardware industry distribution chart, Alcatel Lucent Teletas Telekomunikasyon AS ranks #1727 out of 2450 companies for Gross Margin %. This places Alcatel Lucent Teletas Telekomunikasyon AS in the lower half of its industry. The industry median Gross Margin % is 24.53. Alcatel Lucent Teletas Telekomunikasyon AS's value of 25.01% is 2% above this benchmark. Historically, Alcatel Lucent Teletas Telekomunikasyon AS's own Gross Margin % has ranged from 3.53 to 25.68 over the past decade. While the company's 10-year median is 13.98 vs. the industry median of 24.53, Alcatel Lucent Teletas Telekomunikasyon AS 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 Gross Margin % for a Hardware company?
The median Gross Margin % among Hardware companies is 24.53, based on 2,450 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. Alcatel Lucent Teletas Telekomunikasyon AS's current Gross Margin % of 25.01% is 2% 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 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 Alcatel Lucent Teletas Telekomunikasyon AS and its competitors. For the Hardware industry, the median Gross Margin % is 24.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Alcatel Lucent Teletas Telekomunikasyon AS's current Gross Margin % is 25.01%, which is 79% above median its own 10-year median of 13.98. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Alcatel Lucent Teletas Telekomunikasyon AS stock overvalued right now?
Based on GuruFocus' analysis, Alcatel Lucent Teletas Telekomunikasyon AS (IST:ALCTL) is currently considered Modestly Undervalued. The stock's GF Value™ is ₺201.00, compared to a current price of ₺163.80 — trading 18.5% below its estimated fair value. The current Gross Margin % is 25.01%, which is 79% above median its 10-year median of 13.98 and 2% above the Hardware industry median of 24.53. Alcatel Lucent Teletas Telekomunikasyon AS's overall GF Score™ is 63/100 with 4 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 Alcatel Lucent Teletas Telekomunikasyon AS (IST:ALCTL), the current Gross Margin % is 25.01% as of Dec. 2025. 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 Alcatel Lucent Teletas Telekomunikasyon AS (IST:ALCTL) Overvalued in 2026?
Based on GuruFocus' analysis, Alcatel Lucent Teletas Telekomunikasyon AS stock appears to be undervalued.
The current stock price of ₺163.80 is trading 18.5% below its estimated GF Value™ of ₺201.00.
GuruFocus considers Alcatel Lucent Teletas Telekomunikasyon AS to be Modestly Undervalued.
Key valuation signals for IST:ALCTL:
Gross Margin %: 25.01% (79% above median its 10-year median of 13.98)
GF Value™: ₺201.00 vs. price of ₺163.80 (18.5% below fair value)
Industry Position: 2% above the Hardware median (#1727 of 2450)
No single metric tells the full story. See the IST:ALCTL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Alcatel Lucent Teletas Telekomunikasyon AS Business Description
Alcatel Lucent Teletas Telekomunikasyon AS is a Turkey-based communications services and equipment provider. It is primarily involved in the production and sale of telecommunication equipment. The company operates through Core Network and Access Network segments. It offers telephone switchboards and transmission devices; and fixed, mobile, and private network solutions and services. Geographically business activities are functioned through the region of Turkey.
63GF Score
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