Telefonica BrasilSTU:TSPA -0.86%84 Gross Margin % is 44.91% as of Mar. 2026, which is 3% below its 10-year median of 46.07. GuruFocus rates STU:TSPA with a GF Score™ of 84/100 and a GF Value™ of €10.60 (Fairly Valued). The stock has 2 warning signs investors should review. Among 341 Telecommunication Services companies, Telefonica Brasil ranks worse than 56.89% on this metric.
The historical rank and industry rank for Telefonica Brasil's Gross Margin % or its related term are showing as below:
STU:TSPA'
s Gross Margin % Range Over the Past 10 Years
Min: 42.9 Med: 46.07 Max: 53.08
Current: 44.93
During the past 13 years, the highestGross Margin % of Telefonica Brasil was 53.08%. The lowest was 42.90%. And the median was 46.07%.
STU:TSPA's Gross Margin % is ranked worse than 56.89% of 341
companies
in the Telecommunication Services industry
Industry Median: 51.5
vs STU:TSPA: 44.93
Telefonica Brasil had a gross margin of 44.91% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Telefonica Brasil was -0.70% per year.
Telefonica Brasil (STU:TSPA) 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
Telefonica Brasil had a gross margin of 44.91% 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.
Telefonica Brasil Gross Margin % Related Terms
Telefonica Brasil Gross Margin % Historical Data
* Premium members only.
The historical data trend for Telefonica Brasil'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.
STU:TSPA vs TMUS, VZ, T: Gross Margin % Comparison
For the Telecom Services subindustry, Telefonica Brasil'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.
Telefonica Brasil Gross Margin % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Telefonica Brasil's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Telefonica Brasil'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.
Telefonica Brasil (STU:TSPA) has a Gross Margin % of 44.91% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Telefonica Brasil and its competitors. This is near median its historical median of 46.07. Over the past decade, Telefonica Brasil's Gross Margin % has ranged from 42.90 to 53.08. According to the industry distribution chart, Telefonica Brasil ranks #194 out of 341 companies in the Telecommunication Services industry, placing it in the top 56.9%.
Is Telefonica Brasil's Gross Margin % too high?
Telefonica Brasil's current Gross Margin % of 44.91% is near median its 10-year median of 46.07. Over the past 10 years, this metric has ranged from a low of 42.90 to a high of 53.08. The Telecommunication Services industry median Gross Margin % is 51.50. Telefonica Brasil's value of 44.91% is 12.8% below this industry median. Based on the distribution chart, Telefonica Brasil ranks #194 out of 341 companies in the Telecommunication Services industry, which is below the industry midpoint. Overall, Telefonica Brasil has a GF Score™ of 84/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Telefonica Brasil's Gross Margin % compare to TMUS and VZ?
According to the Telecommunication Services industry distribution chart, Telefonica Brasil ranks #194 out of 341 companies for Gross Margin %. This places Telefonica Brasil in the lower half of its industry. The industry median Gross Margin % is 51.50. Telefonica Brasil's value of 44.91% is 12.8% below this benchmark. Historically, Telefonica Brasil's own Gross Margin % has ranged from 42.90 to 53.08 over the past decade. While the company's 10-year median is 46.07 vs. the industry median of 51.50, Telefonica Brasil 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 51.50, 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. Telefonica Brasil's current Gross Margin % of 44.91% is 12.8% 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 Telefonica Brasil and its competitors. For the Telecommunication Services industry, the median Gross Margin % is 51.50 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Telefonica Brasil's current Gross Margin % is 44.91%, which is near median its own 10-year median of 46.07. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Telefonica Brasil stock overvalued right now?
Based on GuruFocus' analysis, Telefonica Brasil (STU:TSPA) is currently considered Fairly Valued. The stock's GF Value™ is €10.60, compared to a current price of €11.50 — trading 8.5% above its estimated fair value. The current Gross Margin % is 44.91%, which is near median its 10-year median of 46.07 and 12.8% below the Telecommunication Services industry median of 51.50. Telefonica Brasil's overall GF Score™ is 84/100 with 2 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 Telefonica Brasil (STU:TSPA), the current Gross Margin % is 44.91% 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 Telefonica Brasil (STU:TSPA) Overvalued in 2026?
Based on GuruFocus' analysis, Telefonica Brasil stock appears to be overvalued.
The current stock price of €11.50 is trading 8.5% above its estimated GF Value™ of €10.60.
GuruFocus considers Telefonica Brasil to be Fairly Valued.
Key valuation signals for STU:TSPA:
Gross Margin %: 44.91% (near median its 10-year median of 46.07)
GF Value™: €10.60 vs. price of €11.50 (8.5% above fair value)
Industry Position: 12.8% below the Telecommunication Services median (#194 of 341)
No single metric tells the full story. See the STU:TSPA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Telefonica Brasil, known as Vivo, is the largest wireless carrier in Brazil with 103 million customers, which is equal to about 38% market share. The firm is strongest in the postpaid business, where it has 72 million customers, or about 40% share of this market. Wireless services and equipment contribute about 70% of total revenue. Vivo is the incumbent fixed-line telephone operator in Sao Paulo state and also owns an extensive fiber network across the country. The firm provides internet access to 8 million households on this network. The firm also sells pay-TV and phone services to its fixed-line customers. Finally, corporate data and IT services, including cloud computing support, contribute about 10% of total revenue.
84GF Score
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