Telefonica BrasilFRA:TSPA +3.70%80 Operating Margin % is 16.14% as of Mar. 2026, which is 2% above its 10-year median of 15.75. GuruFocus rates FRA:TSPA with a GF Score™ of 80/100 and a GF Value™ of €10.27 (Fairly Valued). The stock has 2 warning signs investors should review. Among 367 Telecommunication Services companies, Telefonica Brasil ranks better than 69.21% on this metric.
Telefonica Brasil SA operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for Telefonica Brasil's Operating Margin % or its related term are showing as below:
FRA:TSPA'
s Operating Margin % Range Over the Past 10 Years
Min: 13.28 Med: 15.75 Max: 21.14
Current: 16.85
FRA:TSPA's Operating Margin % is ranked better than 69.21% of 367
companies
in the Telecommunication Services industry
Industry Median: 9.73
vs FRA:TSPA: 16.85
Telefonica Brasil's 5-Year Average Operating Margin % Growth Rate was 3.60% per year.
Telefonica Brasil (FRA:TSPA) 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.
Telefonica Brasil Operating Margin % Related Terms
Telefonica Brasil Operating Margin % Historical Data
* Premium members only.
The historical data trend for Telefonica Brasil'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:TSPA vs TMUS, VZ, T: Operating Margin % Comparison
For the Telecom Services subindustry, Telefonica Brasil'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.
Telefonica Brasil Operating Margin % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Telefonica Brasil's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Telefonica Brasil'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.
Telefonica Brasil'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.
Telefonica Brasil (FRA:TSPA) has a Operating Margin % of 16.14% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Telefonica Brasil and its competitors. This is near median its historical median of 15.75. Over the past decade, Telefonica Brasil's Operating Margin % has ranged from 13.28 to 21.14. According to the industry distribution chart, Telefonica Brasil ranks #113 out of 367 companies in the Telecommunication Services industry, placing it in the top 30.8%.
Is Telefonica Brasil's Operating Margin % too high?
Telefonica Brasil's current Operating Margin % of 16.14% is near median its 10-year median of 15.75. Over the past 10 years, this metric has ranged from a low of 13.28 to a high of 21.14. The Telecommunication Services industry median Operating Margin % is 9.73. Telefonica Brasil's value of 16.14% is 65.9% above this industry median. Based on the distribution chart, Telefonica Brasil ranks #113 out of 367 companies in the Telecommunication Services industry, which is above the industry midpoint. Overall, Telefonica Brasil has a GF Score™ of 80/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Telefonica Brasil's Operating Margin % compare to TMUS and VZ?
According to the Telecommunication Services industry distribution chart, Telefonica Brasil ranks #113 out of 367 companies for Operating Margin %. This puts Telefonica Brasil in the upper half of its industry. The industry median Operating Margin % is 9.73. Telefonica Brasil's value of 16.14% is 65.9% above this benchmark. Historically, Telefonica Brasil's own Operating Margin % has ranged from 13.28 to 21.14 over the past decade. While the company's 10-year median is 15.75 vs. the industry median of 9.73, Telefonica Brasil 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. Telefonica Brasil's current Operating Margin % of 16.14% is 65.9% 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 Telefonica Brasil 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. Telefonica Brasil's current Operating Margin % is 16.14%, which is near median its own 10-year median of 15.75. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Telefonica Brasil stock overvalued right now?
Based on GuruFocus' analysis, Telefonica Brasil (FRA:TSPA) is currently considered Fairly Valued. The stock's GF Value™ is €10.27, compared to a current price of €11.20 — trading 9.1% above its estimated fair value. The current Operating Margin % is 16.14%, which is near median its 10-year median of 15.75 and 65.9% above the Telecommunication Services industry median of 9.73. Telefonica Brasil's overall GF Score™ is 80/100 with 2 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 Telefonica Brasil (FRA:TSPA), the current Operating Margin % is 16.14% 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 Brasil (FRA:TSPA) Overvalued in 2026?
Based on GuruFocus' analysis, Telefonica Brasil stock appears to be overvalued.
The current stock price of €11.20 is trading 9.1% above its estimated GF Value™ of €10.27.
GuruFocus considers Telefonica Brasil to be Fairly Valued.
Key valuation signals for FRA:TSPA:
Operating Margin %: 16.14% (near median its 10-year median of 15.75)
GF Value™: €10.27 vs. price of €11.20 (9.1% above fair value)
Industry Position: 65.9% above the Telecommunication Services median (#113 of 367)
No single metric tells the full story. See the FRA:TSPA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Telefonica Brasil, known as Vivo, is the largest wireless carrier in Brazil with 103 million customers, which is equal to about 38% market share. The firm is strongest in the postpaid business, where it has 72 million customers, or about 40% share of this market. Wireless services and equipment contribute about 70% of total revenue. Vivo is the incumbent fixed-line telephone operator in Sao Paulo state and also owns an extensive fiber network across the country. The firm provides internet access to 8 million households on this network. The firm also sells pay-TV and phone services to its fixed-line customers. Finally, corporate data and IT services, including cloud computing support, contribute about 10% of total revenue.
80GF Score
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