ZTE (FRA:FZM) Moat Score: 5/10 (As of Jul. 08, 2026)


FRA:FZM ZTE Corp FRA:FZM
83 GF Score
Price €2.50
GF Value €2.54
Valuation Fairly Valued
! 6 Warning Signs
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What is ZTE Moat Score?

ZTE FRA:FZM -1.44% 83 Moat Score is 5 as of Jul. 08, 2026. GuruFocus rates FRA:FZM with a GF Score™ of 83/100 and a GF Value™ of €2.54 (Fairly Valued). The stock has 6 warning signs investors should review. Among 2,466 Hardware companies, ZTE ranks better than 97.2% on this metric.

ZTE has the Moat Score of 5, which implies that the company might have Narrow Moat - Solid narrow moat.

ZTE has Narrow Moat: ZTE Corp has a solid narrow moat due to its strong brand presence in telecommunications and significant R&D capabilities. However, intense competition and regulatory challenges limit its ability to achieve a wide moat.

Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more.

The company's Moat Score is based on these criteria:

1. Market leadership and sustainable market share
2. Network effects and significant customer switching costs
3. Valuable intellectual property and patents
4. Strong brand strength and deep customer loyalty
5. Durable cost advantages (e.g., economies of scale, proprietary technology)
6. Significant regulatory barriers and exclusive licenses
7. Superior distribution network
8. Strong and sustainable pricing power
9. Consistent and impactful innovation and R&D capabilities

Based on the research, GuruFocus believes ZTE might have Narrow Moat - Solid narrow moat.

ZTE  (FRA:FZM) Moat Score Explanation

The Moat Score ranges from 0 to 10, with 10 as the highest. GuruFocus divided Moat Score into following 8 categories:

Moat Score Moat Level
10Wide Moat - Exceptionally dominant and durable wide moat
8 - 9Wide Moat - Clear and robust wide moat
7Wide Moat - Entry-level wide moat, clearly possessing durable advantages
6Narrow Moat - Strong narrow moat, clearly distinguishable but not wide
5Narrow Moat - Solid narrow moat
4Narrow Moat - Discernible but modest moat
1 - 3No Moat - Very weak/transient advantages
0No Moat - No discernible moat

ZTE Moat Score Related Terms

FRA:FZM vs CSCO, CIEN, MSI: Moat Score Comparison

For the Communication Equipment subindustry, ZTE's Moat Score, along with its competitors' market caps and Moat Score 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.

ZTE Moat Score vs Hardware Industry

For the Hardware industry and Technology sector, ZTE's Moat Score distribution charts can be found below:

* The bar in red indicates where ZTE's Moat Score falls into.


FRA:FZM
83GF Score
ZTE Corp FRA:FZM
Moat Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Frequently Asked Questions Learn more about Moat Score →
What does a Moat Score of 5 mean?
ZTE (FRA:FZM) has a Moat Score of 5 as of Jul. 08, 2026. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. According to the industry distribution chart, ZTE ranks #69 out of 2466 companies in the Hardware industry, placing it in the top 2.8%.
Is ZTE's Moat Score too high?
ZTE's current Moat Score is 5. Based on the distribution chart, ZTE ranks #69 out of 2466 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. Overall, ZTE has a GF Score™ of 83/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does ZTE's Moat Score compare to CSCO and CIEN?
According to the Hardware industry distribution chart, ZTE ranks #69 out of 2466 companies for Moat Score. This places ZTE in the top 3% of its industry — outperforming the majority of peers. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Moat Score for a Hardware company?
A good Moat Score depends on the Hardware industry context. However, Moat Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Moat Score mean?
A high Moat Score can signal that a stock is expensive relative to its fundamentals. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. ZTE's current Moat Score is 5. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ZTE stock overvalued right now?
Based on GuruFocus' analysis, ZTE (FRA:FZM) is currently considered Fairly Valued. The stock's GF Value™ is €2.54, compared to a current price of €2.50 — trading 1.6% below its estimated fair value. The current Moat Score is 5. ZTE's overall GF Score™ is 83/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Moat Score calculated?
Moat Score is calculated from a company's financial statements. For ZTE (FRA:FZM), the current Moat Score is 5 as of Jul. 08, 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 ZTE (FRA:FZM) Overvalued in 2026?

Based on GuruFocus' analysis, ZTE stock appears to be undervalued. The current stock price of €2.50 is trading 1.6% below its estimated GF Value™ of €2.54. GuruFocus considers ZTE to be Fairly Valued.

Key valuation signals for FRA:FZM:

  • Moat Score: 5
  • GF Value™: €2.54 vs. price of €2.50 (1.6% below fair value)
  • GF Score™: 83/100 with 6 warning signs

No single metric tells the full story. See the FRA:FZM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

ZTE Business Description

Address ZTE Plaza, Keji Road South, Hi-Tech Industrial Park, Nanshan District, Guangdong Province, Shenzhen, CHN, 518057
ZTE Corp is a provider of integrated telecommunications and IT solutions with a full range of end-to-end ICT products and solutions integrating design, development, production, sales, and services with a special focus on carriers networks, government and corporate business, and consumer business. It operates in three segments Carriers network, Consumer Business, and Government and Corporate Business. It generates a majority of its revenue from equipment supporting carriers' networks. It has a presence in the PRC, Asia, Africa, Europe, and the Americas. It generates the majority of its revenue from the PRC region.
83GF Score

Get the complete analysis for FRA:FZM

Moat Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€2.50
Price
€2.54
GF Value