China TelecomSTU:ZCH 84 Gross Margin % is 70.21% as of Mar. 2026, which is 18% above its 10-year median of 59.41. GuruFocus rates STU:ZCH with a GF Score™ of 84/100 and a GF Value™ of €0.64. The stock has 7 warning signs investors should review. Among 341 Telecommunication Services companies, China Telecom ranks better than 62.46% on this metric.
China Telecom Corp Ltd gross margin has been in long-term decline. The average rate of decline per year is -1.1%.
The historical rank and industry rank for China Telecom's Gross Margin % or its related term are showing as below:
STU:ZCH'
s Gross Margin % Range Over the Past 10 Years
Min: 58.11 Med: 59.41 Max: 63.83
Current: 59.06
During the past 13 years, the highestGross Margin % of China Telecom was 63.83%. The lowest was 58.11%. And the median was 59.41%.
STU:ZCH's Gross Margin % is ranked better than 62.46% of 341
companies
in the Telecommunication Services industry
Industry Median: 51.52
vs STU:ZCH: 59.06
China Telecom had a gross margin of 70.21% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for China Telecom was -1.10% per year.
China Telecom (STU:ZCH) 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
China Telecom had a gross margin of 70.21% 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.
China Telecom Gross Margin % Related Terms
China Telecom Gross Margin % Historical Data
* Premium members only.
The historical data trend for China Telecom'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, China Telecom'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.
China Telecom Gross Margin % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, China Telecom's Gross Margin % distribution charts can be found below:
* The bar in red indicates where China Telecom'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.
China Telecom (STU:ZCH) has a Gross Margin % of 70.21% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on China Telecom and its competitors. This is 18% above median its historical median of 59.41. Over the past decade, China Telecom's Gross Margin % has ranged from 58.11 to 63.83. According to the industry distribution chart, China Telecom ranks #128 out of 341 companies in the Telecommunication Services industry, placing it in the top 37.5%.
Is China Telecom's Gross Margin % too high?
China Telecom's current Gross Margin % of 70.21% is 18% above median its 10-year median of 59.41. Over the past 10 years, this metric has ranged from a low of 58.11 to a high of 63.83. The Telecommunication Services industry median Gross Margin % is 51.52. China Telecom's value of 70.21% is 36.3% above this industry median. Based on the distribution chart, China Telecom ranks #128 out of 341 companies in the Telecommunication Services industry, which is above the industry midpoint. Overall, China Telecom has a GF Score™ of 84/100, reflecting its overall financial health beyond just this single metric.
How does China Telecom's Gross Margin % compare to TMUS and VZ?
According to the Telecommunication Services industry distribution chart, China Telecom ranks #128 out of 341 companies for Gross Margin %. This puts China Telecom in the upper half of its industry. The industry median Gross Margin % is 51.52. China Telecom's value of 70.21% is 36.3% above this benchmark. Historically, China Telecom's own Gross Margin % has ranged from 58.11 to 63.83 over the past decade. While the company's 10-year median is 59.41 vs. the industry median of 51.52, China Telecom 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. China Telecom's current Gross Margin % of 70.21% is 36.3% 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 China Telecom 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. China Telecom's current Gross Margin % is 70.21%, which is 18% above median its own 10-year median of 59.41. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Telecom stock overvalued right now?
China Telecom (STU:ZCH) has a current Gross Margin % of 70.21%. The stock's GF Value™ is €0.64, compared to a current price of €0.57 — trading 11.7% below its estimated fair value. The current Gross Margin % is 70.21%, which is 18% above median its 10-year median of 59.41 and 36.3% above the Telecommunication Services industry median of 51.52. China Telecom's overall GF Score™ is 84/100 with 7 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 China Telecom (STU:ZCH), the current Gross Margin % is 70.21% 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 China Telecom (STU:ZCH) Overvalued in 2026?
Based on GuruFocus' analysis, China Telecom stock appears to be undervalued.
The current stock price of €0.57 is trading 11.7% below its estimated GF Value™ of €0.64.
Key valuation signals for STU:ZCH:
Gross Margin %: 70.21% (18% above median its 10-year median of 59.41)
GF Value™: €0.64 vs. price of €0.57 (11.7% below fair value)
Industry Position: 36.3% above the Telecommunication Services median (#128 of 341)
No single metric tells the full story. See the STU:ZCH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Telecom is the largest fixed-line operator in China, originally covering 21 southern provinces but now operating nationally. It has 201 million broadband customers, and 439 million wireless subscribers, having overtaken China Unicom to become the second-largest wireless operator in China behind China Mobile. The firm is increasing its cross-selling of products and seeing strong growth from industrial digitization services, such as internet data centers and cloud computing. Its internet data center business is already the largest in China and it is expanding overseas.
84GF Score
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