Telkom SOCJSE:TKG -2.10%75 Gross Margin % is 83.98% as of Mar. 2026, which is 6% above its 10-year median of 79.35. GuruFocus rates JSE:TKG with a GF Score™ of 75/100 and a GF Value™ of R33.56 (Significantly Overvalued). The stock has 1 warning sign investors should review. Among 341 Telecommunication Services companies, Telkom SOC ranks better than 91.5% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Telkom SOC's Gross Profit for the
six
months ended in Mar. 2026 was R18,788 Mil. Telkom SOC's Revenue for the
six
months ended in Mar. 2026 was R22,373 Mil. Therefore, Telkom SOC's Gross Margin % for the quarter that ended in Mar. 2026 was 83.98%.
The historical rank and industry rank for Telkom SOC's Gross Margin % or its related term are showing as below:
JSE:TKG'
s Gross Margin % Range Over the Past 10 Years
Min: 76.25 Med: 79.35 Max: 82.9
Current: 82.9
During the past 13 years, the highestGross Margin % of Telkom SOC was 82.90%. The lowest was 76.25%. And the median was 79.35%.
JSE:TKG's Gross Margin % is ranked better than 91.5% of 341
companies
in the Telecommunication Services industry
Industry Median: 51.52
vs JSE:TKG: 82.90
Telkom SOC had a gross margin of 83.98% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Telkom SOC was 0.90% per year.
Telkom SOC (JSE:TKG) 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
Telkom SOC had a gross margin of 83.98% for the quarter that ended in Mar. 2026 => Durable 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.
Telkom SOC Gross Margin % Related Terms
Telkom SOC Gross Margin % Historical Data
* Premium members only.
The historical data trend for Telkom SOC'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, Telkom SOC'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.
Telkom SOC Gross Margin % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Telkom SOC's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Telkom SOC'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.
Telkom SOC (JSE:TKG) has a Gross Margin % of 83.98% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Telkom SOC and its competitors. This is near median its historical median of 79.35. Over the past decade, Telkom SOC's Gross Margin % has ranged from 76.25 to 82.90. According to the industry distribution chart, Telkom SOC ranks #29 out of 341 companies in the Telecommunication Services industry, placing it in the top 8.5%.
Is Telkom SOC's Gross Margin % too high?
Telkom SOC's current Gross Margin % of 83.98% is near median its 10-year median of 79.35. Over the past 10 years, this metric has ranged from a low of 76.25 to a high of 82.90. The Telecommunication Services industry median Gross Margin % is 51.52. Telkom SOC's value of 83.98% is 63% above this industry median. Based on the distribution chart, Telkom SOC ranks #29 out of 341 companies in the Telecommunication Services industry, which is in the top quartile — a strong position relative to peers. Overall, Telkom SOC has a GF Score™ of 75/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Telkom SOC's Gross Margin % compare to TMUS and VZ?
According to the Telecommunication Services industry distribution chart, Telkom SOC ranks #29 out of 341 companies for Gross Margin %. This places Telkom SOC in the top 9% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 51.52. Telkom SOC's value of 83.98% is 63% above this benchmark. Historically, Telkom SOC's own Gross Margin % has ranged from 76.25 to 82.90 over the past decade. While the company's 10-year median is 79.35 vs. the industry median of 51.52, Telkom SOC 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 Telecommunication Services company?
The median Gross Margin % among Telecommunication Services companies is 51.52, based on 341 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. Telkom SOC's current Gross Margin % of 83.98% is 63% 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 Telkom SOC and its competitors. For the Telecommunication Services industry, the median Gross Margin % is 51.52 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Telkom SOC's current Gross Margin % is 83.98%, which is near median its own 10-year median of 79.35. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Telkom SOC stock overvalued right now?
Based on GuruFocus' analysis, Telkom SOC (JSE:TKG) is currently considered Significantly Overvalued. The stock's GF Value™ is R33.56, compared to a current price of R53.26 — trading 58.7% above its estimated fair value. The current Gross Margin % is 83.98%, which is near median its 10-year median of 79.35 and 63% above the Telecommunication Services industry median of 51.52. Telkom SOC's overall GF Score™ is 75/100 with 1 warning sign 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 Telkom SOC (JSE:TKG), the current Gross Margin % is 83.98% 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 Telkom SOC (JSE:TKG) Overvalued in 2026?
Based on GuruFocus' analysis, Telkom SOC stock appears to be overvalued.
The current stock price of R53.26 is trading 58.7% above its estimated GF Value™ of R33.56.
GuruFocus considers Telkom SOC to be Significantly Overvalued.
Key valuation signals for JSE:TKG:
Gross Margin %: 83.98% (near median its 10-year median of 79.35)
GF Value™: R33.56 vs. price of R53.26 (58.7% above fair value)
Industry Position: 63% above the Telecommunication Services median (#29 of 341)
No single metric tells the full story. See the JSE:TKG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Telkom SA SOC Ltd provides fixed-line voice and data communications services in South Africa. The company has segments namely: Openserve; Telkom Consumer; BCX; Gyro; and others It derives maximum revenue from Telkom Consumer segment.
75GF Score
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