Telefonica (MEX:TEF1 N) Moat Score : 5/10 (As of Jul. 23, 2025)

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What is Telefonica Moat Score?

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

Telefonica has Narrow Moat: Telefonica has a solid narrow moat due to its strong brand and significant regulatory barriers in telecommunications. However, intense competition limits its pricing power and market leadership.

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 Telefonica might have Narrow Moat - Solid narrow moat.

Competitive Comparison of Telefonica's Moat Score

For the Telecom Services subindustry, Telefonica'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.

Telefonica's Moat Score Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Telefonica's Moat Score distribution charts can be found below:

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

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Telefonica (MEX:TEF1 N) 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
10	Wide Moat - Exceptionally dominant and durable wide moat
8 - 9	Wide Moat - Clear and robust wide moat
7	Wide Moat - Entry-level wide moat, clearly possessing durable advantages
6	Narrow Moat - Strong narrow moat, clearly distinguishable but not wide
5	Narrow Moat - Solid narrow moat
4	Narrow Moat - Discernible but modest moat
1 - 3	No Moat - Very weak/transient advantages
0	No Moat - No discernible moat

Telefonica Moat Score Related Terms

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Telefonica Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Telecommunication Services » Telefonica SA (MEX:TEF1 N) » Definitions » Moat Score

Comparable Companies

Traded in Other Exchanges

TEFOF:USA TEF:USA TEF:Peru TEF N:Mexico 1TEF:Italy TEFe:UK 0TDE:UK TEF:Spain TNE5:Germany TNE5:Germany TNE2:Germany TNE5:Germany TNE5:Germany TNE2:Germany TLNC34:Brazil TEF:Austria

Address

Ronda de la Comunicacion, s/n, Central Building Auditorium, Telefonica District, Madrid, ESP, 28050

Website

https://www.telefonica.com

Telefonica operates mobile and fixed networks in Spain (where it is the incumbent operator), the UK, Germany, Brazil, and Latin American countries. The company derives more than 30% of its revenue from Spain, close to 20% from Germany, and 20% from Brazil. Its UK operations are held through a joint venture with Virgin Media. For several years Telefonica has been simplifying its corporate structure by selling noncore assets.

Telefonica Headlines

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