TelefonicaTEFOF 64 Net Margin % is -5.06% as of Mar. 2026. GuruFocus rates TEFOF with a GF Score™ of 64/100 and a GF Value™ of $4.13 (Fairly Valued). The stock has 8 warning signs investors should review. Among 368 Telecommunication Services companies, Telefonica ranks worse than 82.88% on this metric.
Net margin is calculated as Net Income divided by its Revenue. Telefonica's Net Income for the
three
months ended in Mar. 2026 was $-475 Mil. Telefonica's Revenue for the
three
months ended in Mar. 2026 was $9,395 Mil. Therefore, Telefonica's net margin for the quarter that ended in Mar. 2026 was -5.06%.
The historical rank and industry rank for Telefonica's Net Margin % or its related term are showing as below:
TEFOF'
s Net Margin % Range Over the Past 10 Years
Min: -12.29 Med: 4.11 Max: 20.72
Current: -10.06
TEFOF's Net Margin % is ranked worse than 82.88% of 368
companies
in the Telecommunication Services industry
Industry Median: 5.455
vs TEFOF: -10.06
Telefonica (OTCPK:TEFOF) 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.
Telefonica Net Margin % Related Terms
Telefonica Net Margin % Historical Data
* Premium members only.
The historical data trend for Telefonica'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, Telefonica'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.
Telefonica Net Margin % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Telefonica's Net Margin % distribution charts can be found below:
* The bar in red indicates where Telefonica'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.
Telefonica (TEFOF) has a Net Margin % of -5.06% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on Telefonica and its competitors. According to the industry distribution chart, Telefonica ranks #305 out of 368 companies in the Telecommunication Services industry, placing it in the top 82.9%.
Is Telefonica's Net Margin % too high?
Telefonica's current Net Margin % is -5.06%. Based on the distribution chart, Telefonica ranks #305 out of 368 companies in the Telecommunication Services industry, which is in the bottom quartile relative to peers. Overall, Telefonica has a GF Score™ of 64/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Telefonica's Net Margin % compare to TMUS and VZ?
According to the Telecommunication Services industry distribution chart, Telefonica ranks #305 out of 368 companies for Net Margin %. This places Telefonica in the lower half of its industry. The industry median Net Margin % is 5.46. 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 5.46, based on 368 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. 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 Telefonica and its competitors. For the Telecommunication Services industry, the median Net Margin % is 5.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Telefonica's current Net Margin % is -5.06%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Telefonica stock overvalued right now?
Based on GuruFocus' analysis, Telefonica (TEFOF) is currently considered Fairly Valued. The stock's GF Value™ is $4.13, compared to a current price of $4.20 — trading 1.6% above its estimated fair value. The current Net Margin % is -5.06%. Telefonica's overall GF Score™ is 64/100 with 8 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 Telefonica (TEFOF), the current Net Margin % is -5.06% 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 Telefonica (TEFOF) Overvalued in 2026?
Based on GuruFocus' analysis, Telefonica stock appears to be overvalued.
The current stock price of $4.20 is trading 1.6% above its estimated GF Value™ of $4.13.
GuruFocus considers Telefonica to be Fairly Valued.
Key valuation signals for TEFOF:
Net Margin %: -5.06%
GF Value™: $4.13 vs. price of $4.20 (1.6% above fair value)
No single metric tells the full story. See the TEFOF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Telefonica is a telecommunications operator with presence 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.
64GF Score
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