Telstra GroupTLGPY +0.88%74 Gross Margin % is 64.52% as of Dec. 2025, which is 2% above its 10-year median of 63.19. GuruFocus rates TLGPY with a GF Score™ of 74/100 and a GF Value™ of $15.94 (Modestly Overvalued). The stock has 6 warning signs investors should review. Among 344 Telecommunication Services companies, Telstra Group ranks better than 73.26% on this metric.
The historical rank and industry rank for Telstra Group's Gross Margin % or its related term are showing as below:
TLGPY'
s Gross Margin % Range Over the Past 10 Years
Min: 60 Med: 63.19 Max: 72.03
Current: 64.43
During the past 13 years, the highestGross Margin % of Telstra Group was 72.03%. The lowest was 60.00%. And the median was 63.19%.
TLGPY's Gross Margin % is ranked better than 73.26% of 344
companies
in the Telecommunication Services industry
Industry Median: 51.415
vs TLGPY: 64.43
Telstra Group had a gross margin of 64.52% for the quarter that ended in Dec. 2025 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Telstra Group was 1.30% per year.
Telstra Group (OTCPK:TLGPY) 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
Telstra Group had a gross margin of 64.52% 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.
Telstra Group Gross Margin % Related Terms
Telstra Group Gross Margin % Historical Data
* Premium members only.
The historical data trend for Telstra Group'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, Telstra Group'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.
Telstra Group Gross Margin % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Telstra Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Telstra Group'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.
Telstra Group (TLGPY) has a Gross Margin % of 64.52% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Telstra Group and its competitors. This is near median its historical median of 63.19. Over the past decade, Telstra Group's Gross Margin % has ranged from 60.00 to 72.03. According to the industry distribution chart, Telstra Group ranks #92 out of 344 companies in the Telecommunication Services industry, placing it in the top 26.7%.
Is Telstra Group's Gross Margin % too high?
Telstra Group's current Gross Margin % of 64.52% is near median its 10-year median of 63.19. Over the past 10 years, this metric has ranged from a low of 60.00 to a high of 72.03. The Telecommunication Services industry median Gross Margin % is 51.42. Telstra Group's value of 64.52% is 25.5% above this industry median. Based on the distribution chart, Telstra Group ranks #92 out of 344 companies in the Telecommunication Services industry, which is above the industry midpoint. Overall, Telstra Group has a GF Score™ of 74/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Telstra Group's Gross Margin % compare to TMUS and VZ?
According to the Telecommunication Services industry distribution chart, Telstra Group ranks #92 out of 344 companies for Gross Margin %. This puts Telstra Group in the upper half of its industry. The industry median Gross Margin % is 51.42. Telstra Group's value of 64.52% is 25.5% above this benchmark. Historically, Telstra Group's own Gross Margin % has ranged from 60.00 to 72.03 over the past decade. While the company's 10-year median is 63.19 vs. the industry median of 51.42, Telstra Group 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 51.42, 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. Telstra Group's current Gross Margin % of 64.52% is 25.5% 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 Telstra Group 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. Telstra Group's current Gross Margin % is 64.52%, which is near median its own 10-year median of 63.19. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Telstra Group stock overvalued right now?
Based on GuruFocus' analysis, Telstra Group (TLGPY) is currently considered Modestly Overvalued. The stock's GF Value™ is $15.94, compared to a current price of $17.79 — trading 11.6% above its estimated fair value. The current Gross Margin % is 64.52%, which is near median its 10-year median of 63.19 and 25.5% above the Telecommunication Services industry median of 51.42. Telstra Group's overall GF Score™ is 74/100 with 6 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 Telstra Group (TLGPY), the current Gross Margin % is 64.52% 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 Telstra Group (TLGPY) Overvalued in 2026?
Based on GuruFocus' analysis, Telstra Group stock appears to be overvalued.
The current stock price of $17.79 is trading 11.6% above its estimated GF Value™ of $15.94.
GuruFocus considers Telstra Group to be Modestly Overvalued.
Key valuation signals for TLGPY:
Gross Margin %: 64.52% (near median its 10-year median of 63.19)
GF Value™: $15.94 vs. price of $17.79 (11.6% above fair value)
Industry Position: 25.5% above the Telecommunication Services median (#92 of 344)
No single metric tells the full story. See the TLGPY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Telstra is Australia's largest telecommunications company, with dominant market shares in voice, mobile, enterprise telecom, and fixed-line broadband resale via the national broadband network. Telstra provides most of its services via its infrastructure assets, such as a fixed-line network (data centers, exchanges, poles, ducts, pits and pipes, fiber network), a mobile network, and mobile towers. Its customers span retail, corporate, government, wholesale, and overseas segments. Telstra also provides the government-owned, last-mile fixed-line National Broadband Network with long-term access to its infrastructure, in return for recurring payments. Finally, Telstra operates a leading telecom operation in Papua New Guinea and the surrounding South-Pacific countries.
74GF Score
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