Vodacom GroupFRA:5VD -0.66%93 Operating Margin % is 24.91% as of Mar. 2026, which is 2% above its 10-year median of 24.54. GuruFocus rates FRA:5VD with a GF Score™ of 93/100 and a GF Value™ of €7.43 (Fairly Valued). The stock has 5 warning signs investors should review. Among 367 Telecommunication Services companies, Vodacom Group ranks better than 82.56% on this metric.
Vodacom Group Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -1.5%.
The historical rank and industry rank for Vodacom Group's Operating Margin % or its related term are showing as below:
FRA:5VD'
s Operating Margin % Range Over the Past 10 Years
Min: 21.74 Med: 24.54 Max: 26.86
Current: 23.77
FRA:5VD's Operating Margin % is ranked better than 82.56% of 367
companies
in the Telecommunication Services industry
Industry Median: 9.73
vs FRA:5VD: 23.77
Vodacom Group's 5-Year Average Operating Margin % Growth Rate was -1.50% per year.
Vodacom Group (FRA:5VD) 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.
Vodacom Group Operating Margin % Related Terms
Vodacom Group Operating Margin % Historical Data
* Premium members only.
The historical data trend for Vodacom 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:5VD vs TMUS, VZ, T: Operating Margin % Comparison
For the Telecom Services subindustry, Vodacom 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.
Vodacom Group Operating Margin % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Vodacom Group's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Vodacom 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.
Vodacom Group's Operating Margin % for the fiscal year that ended in Mar. 2026 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.
Vodacom Group (FRA:5VD) has a Operating Margin % of 24.91% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Vodacom Group and its competitors. This is near median its historical median of 24.54. Over the past decade, Vodacom Group's Operating Margin % has ranged from 21.74 to 26.86. According to the industry distribution chart, Vodacom Group ranks #64 out of 367 companies in the Telecommunication Services industry, placing it in the top 17.4%.
Is Vodacom Group's Operating Margin % too high?
Vodacom Group's current Operating Margin % of 24.91% is near median its 10-year median of 24.54. Over the past 10 years, this metric has ranged from a low of 21.74 to a high of 26.86. The Telecommunication Services industry median Operating Margin % is 9.73. Vodacom Group's value of 24.91% is 156% above this industry median. Based on the distribution chart, Vodacom Group ranks #64 out of 367 companies in the Telecommunication Services industry, which is in the top quartile — a strong position relative to peers. Overall, Vodacom Group has a GF Score™ of 93/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Vodacom Group's Operating Margin % compare to TMUS and VZ?
According to the Telecommunication Services industry distribution chart, Vodacom Group ranks #64 out of 367 companies for Operating Margin %. This places Vodacom Group in the top 17% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 9.73. Vodacom Group's value of 24.91% is 156% above this benchmark. Historically, Vodacom Group's own Operating Margin % has ranged from 21.74 to 26.86 over the past decade. While the company's 10-year median is 24.54 vs. the industry median of 9.73, Vodacom 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. Vodacom Group's current Operating Margin % of 24.91% is 156% 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 Vodacom 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. Vodacom Group's current Operating Margin % is 24.91%, which is near median its own 10-year median of 24.54. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Vodacom Group stock overvalued right now?
Based on GuruFocus' analysis, Vodacom Group (FRA:5VD) is currently considered Fairly Valued. The stock's GF Value™ is €7.43, compared to a current price of €7.55 — trading 1.6% above its estimated fair value. The current Operating Margin % is 24.91%, which is near median its 10-year median of 24.54 and 156% above the Telecommunication Services industry median of 9.73. Vodacom Group's overall GF Score™ is 93/100 with 5 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 Vodacom Group (FRA:5VD), the current Operating Margin % is 24.91% 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 Vodacom Group (FRA:5VD) Overvalued in 2026?
Based on GuruFocus' analysis, Vodacom Group stock appears to be overvalued.
The current stock price of €7.55 is trading 1.6% above its estimated GF Value™ of €7.43.
GuruFocus considers Vodacom Group to be Fairly Valued.
Key valuation signals for FRA:5VD:
Operating Margin %: 24.91% (near median its 10-year median of 24.54)
GF Value™: €7.43 vs. price of €7.55 (1.6% above fair value)
Industry Position: 156% above the Telecommunication Services median (#64 of 367)
No single metric tells the full story. See the FRA:5VD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Vodacom Group Ltd is a telecommunications provider. It is engaged in the provision of a wide range of communications products and services including but not limited to voice, messaging, converged services, broadband, data connectivity, mobile financial services and other value added services. Its segments includes South Africa comprises the information relating to the South African-based cellular network and other business segments. Egypt comprises the information relating to the Egyptian-based cellular network and other business segments. International comprises the segment information relating to the non-South African-based cellular networks in Tanzania, Mozambique, Lesotho and the Democratic Republic of Congo. It generates majority of revenue from South Africa.
93GF Score
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