Telstra GroupFRA:5KB -6.21%80 Operating Margin % is 14.20% as of Dec. 2025, which is 16% above its 10-year median of 12.26. GuruFocus rates FRA:5KB with a GF Score™ of 80/100 and a GF Value™ of €13.10. The stock has 6 warning signs investors should review. Among 367 Telecommunication Services companies, Telstra Group ranks better than 64.03% on this metric.
Telstra Group Ltd operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for Telstra Group's Operating Margin % or its related term are showing as below:
FRA:5KB'
s Operating Margin % Range Over the Past 10 Years
Min: 3.55 Med: 12.26 Max: 21.76
Current: 15.07
FRA:5KB's Operating Margin % is ranked better than 64.03% of 367
companies
in the Telecommunication Services industry
Industry Median: 9.73
vs FRA:5KB: 15.07
Telstra Group's 5-Year Average Operating Margin % Growth Rate was 29.30% per year.
Telstra Group (FRA:5KB) 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.
Telstra Group Operating Margin % Related Terms
Telstra Group Operating Margin % Historical Data
* Premium members only.
The historical data trend for Telstra Group'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:5KB vs TMUS, VZ, T: Operating Margin % Comparison
For the Telecom Services subindustry, Telstra Group'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.
Telstra Group Operating Margin % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Telstra Group's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Telstra Group'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.
Telstra Group's Operating Margin % for the fiscal year that ended in Jun. 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.
Telstra Group (FRA:5KB) has a Operating Margin % of 14.20% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Telstra Group and its competitors. This is 16% above median its historical median of 12.26. Over the past decade, Telstra Group's Operating Margin % has ranged from 3.55 to 21.76. According to the industry distribution chart, Telstra Group ranks #132 out of 367 companies in the Telecommunication Services industry, placing it in the top 36%.
Is Telstra Group's Operating Margin % too high?
Telstra Group's current Operating Margin % of 14.20% is 16% above median its 10-year median of 12.26. Over the past 10 years, this metric has ranged from a low of 3.55 to a high of 21.76. The Telecommunication Services industry median Operating Margin % is 9.73. Telstra Group's value of 14.20% is 45.9% above this industry median. Based on the distribution chart, Telstra Group ranks #132 out of 367 companies in the Telecommunication Services industry, which is above the industry midpoint. Overall, Telstra Group has a GF Score™ of 80/100, reflecting its overall financial health beyond just this single metric.
How does Telstra Group's Operating Margin % compare to TMUS and VZ?
According to the Telecommunication Services industry distribution chart, Telstra Group ranks #132 out of 367 companies for Operating Margin %. This puts Telstra Group in the upper half of its industry. The industry median Operating Margin % is 9.73. Telstra Group's value of 14.20% is 45.9% above this benchmark. Historically, Telstra Group's own Operating Margin % has ranged from 3.55 to 21.76 over the past decade. While the company's 10-year median is 12.26 vs. the industry median of 9.73, Telstra Group 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. Telstra Group's current Operating Margin % of 14.20% is 45.9% 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 Telstra Group 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. Telstra Group's current Operating Margin % is 14.20%, which is 16% above median its own 10-year median of 12.26. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Telstra Group stock overvalued right now?
Telstra Group (FRA:5KB) has a current Operating Margin % of 14.20%. The stock's GF Value™ is €13.10, compared to a current price of €15.10 — trading 15.3% above its estimated fair value. The current Operating Margin % is 14.20%, which is 16% above median its 10-year median of 12.26 and 45.9% above the Telecommunication Services industry median of 9.73. Telstra Group's overall GF Score™ is 80/100 with 6 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 Telstra Group (FRA:5KB), the current Operating Margin % is 14.20% 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 Telstra Group (FRA:5KB) Overvalued in 2026?
Based on GuruFocus' analysis, Telstra Group stock appears to be overvalued.
The current stock price of €15.10 is trading 15.3% above its estimated GF Value™ of €13.10.
Key valuation signals for FRA:5KB:
Operating Margin %: 14.20% (16% above median its 10-year median of 12.26)
GF Value™: €13.10 vs. price of €15.10 (15.3% above fair value)
Industry Position: 45.9% above the Telecommunication Services median (#132 of 367)
No single metric tells the full story. See the FRA:5KB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Telstra is Australia's largest telecommunications company, with dominant market shares in voice, mobile, enterprise telecom, and fixed-line broadband resale via the national broadband network. Telstra provides most of its services via its infrastructure assets, such as a fixed-line network (data centers, exchanges, poles, ducts, pits and pipes, fiber network), a mobile network, and mobile towers. Its customers span retail, corporate, government, wholesale, and overseas segments. Telstra also provides the government-owned, last-mile fixed-line National Broadband Network with long-term access to its infrastructure, in return for recurring payments. Finally, Telstra operates a leading telecom operation in Papua New Guinea and the surrounding South-Pacific countries.
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