Telecom Italia SpAMIL:TIT +0.24%45 Gross Margin % is 43.18% as of Mar. 2026, which is 28% below its 10-year median of 60.37. GuruFocus rates MIL:TIT with a GF Score™ of 45/100 and a GF Value™ of €2.36 (Significantly Overvalued). The stock has 9 warning signs investors should review. Among 344 Telecommunication Services companies, Telecom Italia SpA ranks worse than 63.37% on this metric.
Telecom Italia SpA gross margin has been in long-term decline. The average rate of decline per year is -9%.
The historical rank and industry rank for Telecom Italia SpA's Gross Margin % or its related term are showing as below:
MIL:TIT'
s Gross Margin % Range Over the Past 10 Years
Min: 39.02 Med: 60.37 Max: 66.32
Current: 39.02
During the past 13 years, the highestGross Margin % of Telecom Italia SpA was 66.32%. The lowest was 39.02%. And the median was 60.37%.
MIL:TIT's Gross Margin % is ranked worse than 63.37% of 344
companies
in the Telecommunication Services industry
Industry Median: 51.415
vs MIL:TIT: 39.02
Telecom Italia SpA had a gross margin of 43.18% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Telecom Italia SpA was -9.00% per year.
Telecom Italia SpA (MIL:TIT) 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
Telecom Italia SpA had a gross margin of 43.18% 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.
Telecom Italia SpA Gross Margin % Related Terms
Telecom Italia SpA Gross Margin % Historical Data
* Premium members only.
The historical data trend for Telecom Italia SpA'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, Telecom Italia SpA'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.
Telecom Italia SpA Gross Margin % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Telecom Italia SpA's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Telecom Italia SpA'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.
Telecom Italia SpA (MIL:TIT) has a Gross Margin % of 43.18% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Telecom Italia SpA and its competitors. This is 28% below median its historical median of 60.37. Over the past decade, Telecom Italia SpA's Gross Margin % has ranged from 39.02 to 66.32. According to the industry distribution chart, Telecom Italia SpA ranks #218 out of 344 companies in the Telecommunication Services industry, placing it in the top 63.4%.
Is Telecom Italia SpA's Gross Margin % too high?
Telecom Italia SpA's current Gross Margin % of 43.18% is 28% below median its 10-year median of 60.37. Over the past 10 years, this metric has ranged from a low of 39.02 to a high of 66.32. The Telecommunication Services industry median Gross Margin % is 51.42. Telecom Italia SpA's value of 43.18% is 16% below this industry median. Based on the distribution chart, Telecom Italia SpA ranks #218 out of 344 companies in the Telecommunication Services industry, which is below the industry midpoint. Overall, Telecom Italia SpA has a GF Score™ of 45/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Telecom Italia SpA's Gross Margin % compare to TMUS and VZ?
According to the Telecommunication Services industry distribution chart, Telecom Italia SpA ranks #218 out of 344 companies for Gross Margin %. This places Telecom Italia SpA in the lower half of its industry. The industry median Gross Margin % is 51.42. Telecom Italia SpA's value of 43.18% is 16% below this benchmark. Historically, Telecom Italia SpA's own Gross Margin % has ranged from 39.02 to 66.32 over the past decade. While the company's 10-year median is 60.37 vs. the industry median of 51.42, Telecom Italia SpA 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 344 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. Telecom Italia SpA's current Gross Margin % of 43.18% is 16% 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 Telecom Italia SpA 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. Telecom Italia SpA's current Gross Margin % is 43.18%, which is 28% below median its own 10-year median of 60.37. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Telecom Italia SpA stock overvalued right now?
Based on GuruFocus' analysis, Telecom Italia SpA (MIL:TIT) is currently considered Significantly Overvalued. The stock's GF Value™ is €2.36, compared to a current price of €7.80 — trading 230.4% above its estimated fair value. The current Gross Margin % is 43.18%, which is 28% below median its 10-year median of 60.37 and 16% below the Telecommunication Services industry median of 51.42. Telecom Italia SpA's overall GF Score™ is 45/100 with 9 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 Telecom Italia SpA (MIL:TIT), the current Gross Margin % is 43.18% 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 Telecom Italia SpA (MIL:TIT) Overvalued in 2026?
Based on GuruFocus' analysis, Telecom Italia SpA stock appears to be overvalued.
The current stock price of €7.80 is trading 230.4% above its estimated GF Value™ of €2.36.
GuruFocus considers Telecom Italia SpA to be Significantly Overvalued.
Key valuation signals for MIL:TIT:
Gross Margin %: 43.18% (28% below median its 10-year median of 60.37)
GF Value™: €2.36 vs. price of €7.80 (230.4% above fair value)
Industry Position: 16% below the Telecommunication Services median (#218 of 344)
No single metric tells the full story. See the MIL:TIT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Telecom Italia is the incumbent telecommunications operator in Italy, with 23% share in the Italian mobile market and 35% share in broadband. In the mobile market, it competes with Vodafone, WindTre, and Iliad. After the sale of its fixed network to KKR for EUR 18.8 billion in 2024, TIM has become a pure service provider with no network ownership. TIM Brazil is significantly smaller than its peers, Telefonica and America Movil, with 25% wireless market share.
45GF Score
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