Telkom SOCJSE:TKG -1.92%68 Operating Margin % is 17.61% as of Mar. 2026, which is 42% above its 10-year median of 12.41. GuruFocus rates JSE:TKG with a GF Score™ of 68/100 and a GF Value™ of R33.52 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 367 Telecommunication Services companies, Telkom SOC ranks better than 68.39% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Telkom SOC's Operating Income for the
six
months ended in Mar. 2026 was R3,939 Mil. Telkom SOC's Revenue for the
six
months ended in Mar. 2026 was R22,373 Mil. Therefore, Telkom SOC's Operating Margin % for the quarter that ended in Mar. 2026 was 17.61%.
Good Sign:
Telkom SA SOC Ltd operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for Telkom SOC's Operating Margin % or its related term are showing as below:
JSE:TKG'
s Operating Margin % Range Over the Past 10 Years
Min: 4.36 Med: 12.41 Max: 16.99
Current: 16.7
JSE:TKG's Operating Margin % is ranked better than 68.39% of 367
companies
in the Telecommunication Services industry
Industry Median: 9.73
vs JSE:TKG: 16.70
Telkom SOC's 5-Year Average Operating Margin % Growth Rate was 8.80% per year.
Telkom SOC's Operating Income for the
six
months ended in Mar. 2026 was R3,939 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was R7,426 Mil.
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.
Telkom SOC Operating Margin % Related Terms
Telkom SOC Operating Margin % Historical Data
* Premium members only.
The historical data trend for Telkom SOC'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.
JSE:TKG vs TMUS, VZ, T: Operating Margin % Comparison
For the Telecom Services subindustry, Telkom SOC'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.
Telkom SOC Operating Margin % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Telkom SOC's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Telkom SOC'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.
Telkom SOC'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.
Telkom SOC (JSE:TKG) has a Operating Margin % of 17.61% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Telkom SOC and its competitors. This is 42% above median its historical median of 12.41. Over the past decade, Telkom SOC's Operating Margin % has ranged from 4.36 to 16.99. According to the industry distribution chart, Telkom SOC ranks #116 out of 367 companies in the Telecommunication Services industry, placing it in the top 31.6%.
Is Telkom SOC's Operating Margin % too high?
Telkom SOC's current Operating Margin % of 17.61% is 42% above median its 10-year median of 12.41. Over the past 10 years, this metric has ranged from a low of 4.36 to a high of 16.99. The Telecommunication Services industry median Operating Margin % is 9.73. Telkom SOC's value of 17.61% is 81% above this industry median. Based on the distribution chart, Telkom SOC ranks #116 out of 367 companies in the Telecommunication Services industry, which is above the industry midpoint. Overall, Telkom SOC has a GF Score™ of 68/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Telkom SOC's Operating Margin % compare to TMUS and VZ?
According to the Telecommunication Services industry distribution chart, Telkom SOC ranks #116 out of 367 companies for Operating Margin %. This puts Telkom SOC in the upper half of its industry. The industry median Operating Margin % is 9.73. Telkom SOC's value of 17.61% is 81% above this benchmark. Historically, Telkom SOC's own Operating Margin % has ranged from 4.36 to 16.99 over the past decade. While the company's 10-year median is 12.41 vs. the industry median of 9.73, Telkom SOC 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. Telkom SOC's current Operating Margin % of 17.61% is 81% 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 Telkom SOC 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. Telkom SOC's current Operating Margin % is 17.61%, which is 42% above median its own 10-year median of 12.41. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Telkom SOC stock overvalued right now?
Based on GuruFocus' analysis, Telkom SOC (JSE:TKG) is currently considered Significantly Overvalued. The stock's GF Value™ is R33.52, compared to a current price of R56.84 — trading 69.6% above its estimated fair value. The current Operating Margin % is 17.61%, which is 42% above median its 10-year median of 12.41 and 81% above the Telecommunication Services industry median of 9.73. Telkom SOC's overall GF Score™ is 68/100 with 4 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 Telkom SOC (JSE:TKG), the current Operating Margin % is 17.61% 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 Telkom SOC (JSE:TKG) Overvalued in 2026?
Based on GuruFocus' analysis, Telkom SOC stock appears to be overvalued.
The current stock price of R56.84 is trading 69.6% above its estimated GF Value™ of R33.52.
GuruFocus considers Telkom SOC to be Significantly Overvalued.
Key valuation signals for JSE:TKG:
Operating Margin %: 17.61% (42% above median its 10-year median of 12.41)
GF Value™: R33.52 vs. price of R56.84 (69.6% above fair value)
Industry Position: 81% above the Telecommunication Services median (#116 of 367)
No single metric tells the full story. See the JSE:TKG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Telkom SA SOC Ltd provides fixed-line voice and data communications services in South Africa. The company has segments namely: Openserve; Telkom Consumer; BCX; Gyro; and others It derives maximum revenue from Telkom Consumer segment.
68GF 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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