China TowerFRA:2Y11 +6.00%66 Operating Margin % is 16.85% as of Dec. 2025, which is 4% above its 10-year median of 16.26. GuruFocus rates FRA:2Y11 with a GF Score™ of 66/100 and a GF Value™ of €1.33 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 367 Telecommunication Services companies, China Tower ranks better than 70.03% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. China Tower's Operating Income for the
six
months ended in Dec. 2025 was €1,038 Mil. China Tower's Revenue for the
six
months ended in Dec. 2025 was €6,161 Mil. Therefore, China Tower's Operating Margin % for the quarter that ended in Dec. 2025 was 16.85%.
Good Sign:
China Tower Corp Ltd operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for China Tower's Operating Margin % or its related term are showing as below:
FRA:2Y11'
s Operating Margin % Range Over the Past 10 Years
Min: 9.05 Med: 16.26 Max: 17.42
Current: 17.13
FRA:2Y11's Operating Margin % is ranked better than 70.03% of 367
companies
in the Telecommunication Services industry
Industry Median: 9.73
vs FRA:2Y11: 17.13
China Tower's 5-Year Average Operating Margin % Growth Rate was 0.60% per year.
China Tower's Operating Income for the
six
months ended in Dec. 2025 was €1,038 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2025 was €2,081 Mil.
China Tower (FRA:2Y11) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
China Tower Operating Margin % Related Terms
China Tower Operating Margin % Historical Data
* Premium members only.
The historical data trend for China Tower's Operating 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.
FRA:2Y11 vs TMUS, VZ, T: Operating Margin % Comparison
For the Telecom Services subindustry, China Tower's Operating Margin %, along with its competitors' market caps and Operating 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.
China Tower Operating Margin % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, China Tower's Operating Margin % distribution charts can be found below:
* The bar in red indicates where China Tower's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
China Tower's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* 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.
China Tower (FRA:2Y11) has a Operating Margin % of 16.85% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on China Tower and its competitors. This is near median its historical median of 16.26. Over the past decade, China Tower's Operating Margin % has ranged from 9.05 to 17.42. According to the industry distribution chart, China Tower ranks #110 out of 367 companies in the Telecommunication Services industry, placing it in the top 30%.
Is China Tower's Operating Margin % too high?
China Tower's current Operating Margin % of 16.85% is near median its 10-year median of 16.26. Over the past 10 years, this metric has ranged from a low of 9.05 to a high of 17.42. The Telecommunication Services industry median Operating Margin % is 9.73. China Tower's value of 16.85% is 73.2% above this industry median. Based on the distribution chart, China Tower ranks #110 out of 367 companies in the Telecommunication Services industry, which is above the industry midpoint. Overall, China Tower has a GF Score™ of 66/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does China Tower's Operating Margin % compare to TMUS and VZ?
According to the Telecommunication Services industry distribution chart, China Tower ranks #110 out of 367 companies for Operating Margin %. This puts China Tower in the upper half of its industry. The industry median Operating Margin % is 9.73. China Tower's value of 16.85% is 73.2% above this benchmark. Historically, China Tower's own Operating Margin % has ranged from 9.05 to 17.42 over the past decade. While the company's 10-year median is 16.26 vs. the industry median of 9.73, China Tower 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 Operating Margin % for a Telecommunication Services company?
The median Operating Margin % among Telecommunication Services companies is 9.73, based on 367 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. China Tower's current Operating Margin % of 16.85% is 73.2% 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on China Tower and its competitors. For the Telecommunication Services industry, the median Operating Margin % is 9.73 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Tower's current Operating Margin % is 16.85%, which is near median its own 10-year median of 16.26. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Tower stock overvalued right now?
Based on GuruFocus' analysis, China Tower (FRA:2Y11) is currently considered Modestly Undervalued. The stock's GF Value™ is €1.33, compared to a current price of €1.06 — trading 20.3% below its estimated fair value. The current Operating Margin % is 16.85%, which is near median its 10-year median of 16.26 and 73.2% above the Telecommunication Services industry median of 9.73. China Tower's overall GF Score™ is 66/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For China Tower (FRA:2Y11), the current Operating Margin % is 16.85% 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 China Tower (FRA:2Y11) Overvalued in 2026?
Based on GuruFocus' analysis, China Tower stock appears to be undervalued.
The current stock price of €1.06 is trading 20.3% below its estimated GF Value™ of €1.33.
GuruFocus considers China Tower to be Modestly Undervalued.
Key valuation signals for FRA:2Y11:
Operating Margin %: 16.85% (near median its 10-year median of 16.26)
GF Value™: €1.33 vs. price of €1.06 (20.3% below fair value)
Industry Position: 73.2% above the Telecommunication Services median (#110 of 367)
No single metric tells the full story. See the FRA:2Y11 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Tower Corp Ltd is a telecommunications tower infrastructure service provider. It is principally engaged in the construction, maintenance, and operation of base station ancillary facilities such as telecommunications towers, public network coverage in high-speed railways and subways, and large-scale indoor Distributed Antenna Systems (DAS). The Group's various operating divisions are Tower business, DAS business, Smart Tower business, and Energy business. Geographically, the Group derives all of its revenue from Mainland China.
66GF Score
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Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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