Telemasters HoldingsJSE:TLM 64 Gross Margin % is 51.68% as of Dec. 2025, which is 16% above its 10-year median of 44.45. GuruFocus rates JSE:TLM with a GF Score™ of 64/100 and a GF Value™ of R1.10 (Modestly Overvalued). The stock has 3 warning signs investors should review. Among 342 Telecommunication Services companies, Telemasters Holdings ranks worse than 52.63% on this metric.
The historical rank and industry rank for Telemasters Holdings's Gross Margin % or its related term are showing as below:
JSE:TLM'
s Gross Margin % Range Over the Past 10 Years
Min: 33.57 Med: 44.45 Max: 56.01
Current: 50.41
During the past 13 years, the highestGross Margin % of Telemasters Holdings was 56.01%. The lowest was 33.57%. And the median was 44.45%.
JSE:TLM's Gross Margin % is ranked worse than 52.63% of 342
companies
in the Telecommunication Services industry
Industry Median: 51.51
vs JSE:TLM: 50.41
Telemasters Holdings had a gross margin of 51.68% for the quarter that ended in Dec. 2025 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Telemasters Holdings was 4.70% per year.
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
Telemasters Holdings had a gross margin of 51.68% for the quarter that ended in Dec. 2025 => 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.
Telemasters Holdings Gross Margin % Related Terms
Telemasters Holdings Gross Margin % Historical Data
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The historical data trend for Telemasters Holdings'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, Telemasters Holdings'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.
Telemasters Holdings Gross Margin % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Telemasters Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Telemasters Holdings'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.
Telemasters Holdings (JSE:TLM) has a Gross Margin % of 51.68% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Telemasters Holdings and its competitors. This is 16% above median its historical median of 44.45. Over the past decade, Telemasters Holdings' Gross Margin % has ranged from 33.57 to 56.01. According to the industry distribution chart, Telemasters Holdings ranks #180 out of 342 companies in the Telecommunication Services industry, placing it in the top 52.6%.
Is Telemasters Holdings' Gross Margin % too high?
Telemasters Holdings' current Gross Margin % of 51.68% is 16% above median its 10-year median of 44.45. Over the past 10 years, this metric has ranged from a low of 33.57 to a high of 56.01. The Telecommunication Services industry median Gross Margin % is 51.51. Telemasters Holdings' value of 51.68% is 0.3% above this industry median. Based on the distribution chart, Telemasters Holdings ranks #180 out of 342 companies in the Telecommunication Services industry, which is below the industry midpoint. Overall, Telemasters Holdings has a GF Score™ of 64/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Telemasters Holdings' Gross Margin % compare to TMUS and VZ?
According to the Telecommunication Services industry distribution chart, Telemasters Holdings ranks #180 out of 342 companies for Gross Margin %. This places Telemasters Holdings in the lower half of its industry. The industry median Gross Margin % is 51.51. Telemasters Holdings' value of 51.68% is 0.3% above this benchmark. Historically, Telemasters Holdings' own Gross Margin % has ranged from 33.57 to 56.01 over the past decade. While the company's 10-year median is 44.45 vs. the industry median of 51.51, Telemasters Holdings 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 51.51, 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. Telemasters Holdings's current Gross Margin % of 51.68% is 0.3% 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 Telemasters Holdings and its competitors. For the Telecommunication Services industry, the median Gross Margin % is 51.51 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Telemasters Holdings's current Gross Margin % is 51.68%, which is 16% above median its own 10-year median of 44.45. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Telemasters Holdings stock overvalued right now?
Based on GuruFocus' analysis, Telemasters Holdings (JSE:TLM) is currently considered Modestly Overvalued. The stock's GF Value™ is R1.10, compared to a current price of R1.30 — trading 18.2% above its estimated fair value. The current Gross Margin % is 51.68%, which is 16% above median its 10-year median of 44.45 and 0.3% above the Telecommunication Services industry median of 51.51. Telemasters Holdings' overall GF Score™ is 64/100 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 Telemasters Holdings (JSE:TLM), the current Gross Margin % is 51.68% 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 Telemasters Holdings (JSE:TLM) Overvalued in 2026?
Based on GuruFocus' analysis, Telemasters Holdings stock appears to be overvalued.
The current stock price of R1.30 is trading 18.2% above its estimated GF Value™ of R1.10.
GuruFocus considers Telemasters Holdings to be Modestly Overvalued.
Key valuation signals for JSE:TLM:
Gross Margin %: 51.68% (16% above median its 10-year median of 44.45)
GF Value™: R1.10 vs. price of R1.30 (18.2% above fair value)
Industry Position: 0.3% above the Telecommunication Services median (#180 of 342)
No single metric tells the full story. See the JSE:TLM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Telemasters Holdings Ltd is a diversified technology investment company. It provides comprehensive telecommunications services including internet connectivity, cloud solutions, and data storage tailored for businesses across South Africa. The company's reporting segments are: ICT Managed Solutions, Data Centre Services and Corporate. It generates the majority of revenue from the ICT Managed Solutions segment, which provides i) ICT managed solutions to medium and small enterprises through a comprehensive suite of products and services focused on digital connectivity and ii) Data Centre Services.
64GF Score
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