Telkom SOCJSE:TKG -1.92%68 Net Margin % is 8.67% as of Mar. 2026, which is 35% above its 10-year median of 6.42. GuruFocus rates JSE:TKG with a GF Score™ of 68/100 and a GF Value™ of R33.52 (Significantly Overvalued). The stock has 2 warning signs investors should review. Among 366 Telecommunication Services companies, Telkom SOC ranks better than 60.66% on this metric.
Net margin is calculated as Net Income divided by its Revenue. Telkom SOC's Net Income for the
six
months ended in Mar. 2026 was R1,940 Mil. Telkom SOC's Revenue for the
six
months ended in Mar. 2026 was R22,373 Mil. Therefore, Telkom SOC's net margin for the quarter that ended in Mar. 2026 was 8.67%.
The historical rank and industry rank for Telkom SOC's Net Margin % or its related term are showing as below:
JSE:TKG'
s Net Margin % Range Over the Past 10 Years
Min: -23.84 Med: 6.42 Max: 17.09
Current: 7.97
JSE:TKG's Net Margin % is ranked better than 60.66% of 366
companies
in the Telecommunication Services industry
Industry Median: 5.425
vs JSE:TKG: 7.97
Telkom SOC (JSE:TKG) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
Telkom SOC Net Margin % Related Terms
Telkom SOC Net Margin % Historical Data
* Premium members only.
The historical data trend for Telkom SOC's Net 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, Telkom SOC's Net Margin %, along with its competitors' market caps and Net 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.
Telkom SOC Net Margin % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Telkom SOC's Net Margin % distribution charts can be found below:
* The bar in red indicates where Telkom SOC's Net 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.
Telkom SOC (JSE:TKG) has a Net Margin % of 8.67% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on Telkom SOC and its competitors. This is 35% above median its historical median of 6.42. According to the industry distribution chart, Telkom SOC ranks #144 out of 366 companies in the Telecommunication Services industry, placing it in the top 39.3%.
Is Telkom SOC's Net Margin % too high?
Telkom SOC's current Net Margin % of 8.67% is 35% above median its 10-year median of 6.42. The Telecommunication Services industry median Net Margin % is 5.43. Telkom SOC's value of 8.67% is 59.8% above this industry median. Based on the distribution chart, Telkom SOC ranks #144 out of 366 companies in the Telecommunication Services industry, which is above the industry midpoint. Overall, Telkom SOC has a GF Score™ of 68/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Telkom SOC's Net Margin % compare to TMUS and VZ?
According to the Telecommunication Services industry distribution chart, Telkom SOC ranks #144 out of 366 companies for Net Margin %. This puts Telkom SOC in the upper half of its industry. The industry median Net Margin % is 5.43. Telkom SOC's value of 8.67% is 59.8% above this benchmark. While the company's 10-year median is 6.42 vs. the industry median of 5.43, Telkom SOC 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 Net Margin % for a Telecommunication Services company?
The median Net Margin % among Telecommunication Services companies is 5.43, based on 366 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Telkom SOC's current Net Margin % of 8.67% is 59.8% 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 Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Telkom SOC and its competitors. For the Telecommunication Services industry, the median Net Margin % is 5.43 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Telkom SOC's current Net Margin % is 8.67%, which is 35% above median its own 10-year median of 6.42. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Telkom SOC stock overvalued right now?
Based on GuruFocus' analysis, Telkom SOC (JSE:TKG) is currently considered Significantly Overvalued. The stock's GF Value™ is R33.52, compared to a current price of R56.84 — trading 69.6% above its estimated fair value. The current Net Margin % is 8.67%, which is 35% above median its 10-year median of 6.42 and 59.8% above the Telecommunication Services industry median of 5.43. Telkom SOC's overall GF Score™ is 68/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Telkom SOC (JSE:TKG), the current Net Margin % is 8.67% 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 Telkom SOC (JSE:TKG) Overvalued in 2026?
Based on GuruFocus' analysis, Telkom SOC stock appears to be overvalued.
The current stock price of R56.84 is trading 69.6% above its estimated GF Value™ of R33.52.
GuruFocus considers Telkom SOC to be Significantly Overvalued.
Key valuation signals for JSE:TKG:
Net Margin %: 8.67% (35% above median its 10-year median of 6.42)
GF Value™: R33.52 vs. price of R56.84 (69.6% above fair value)
Industry Position: 59.8% above the Telecommunication Services median (#144 of 366)
No single metric tells the full story. See the JSE:TKG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Telkom SA SOC Ltd provides fixed-line voice and data communications services in South Africa. The company has segments namely: Openserve; Telkom Consumer; BCX; Gyro; and others It derives maximum revenue from Telkom Consumer segment.
68GF Score
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Net Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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