China TelecomSTU:ZCH 84 Operating Margin % is 6.18% as of Mar. 2026, which is 18% below its 10-year median of 7.51. GuruFocus rates STU:ZCH with a GF Score™ of 84/100 and a GF Value™ of €0.65. The stock has 6 warning signs investors should review. Among 367 Telecommunication Services companies, China Telecom ranks worse than 59.4% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. China Telecom's Operating Income for the
three
months ended in Mar. 2026 was €1,023 Mil. China Telecom's Revenue for the
three
months ended in Mar. 2026 was €16,563 Mil. Therefore, China Telecom's Operating Margin % for the quarter that ended in Mar. 2026 was 6.18%.
Warning Sign:
China Telecom Corp Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -1.2%.
The historical rank and industry rank for China Telecom's Operating Margin % or its related term are showing as below:
STU:ZCH'
s Operating Margin % Range Over the Past 10 Years
Min: 6.94 Med: 7.51 Max: 8.56
Current: 7.03
STU:ZCH's Operating Margin % is ranked worse than 59.4% of 367
companies
in the Telecommunication Services industry
Industry Median: 9.73
vs STU:ZCH: 7.03
China Telecom's 5-Year Average Operating Margin % Growth Rate was -1.20% per year.
China Telecom's Operating Income for the
three
months ended in Mar. 2026 was €1,023 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was €4,506 Mil.
China Telecom (STU:ZCH) 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 Telecom Operating Margin % Related Terms
China Telecom Operating Margin % Historical Data
* Premium members only.
The historical data trend for China Telecom'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.
STU:ZCH vs TMUS, VZ, T: Operating Margin % Comparison
For the Telecom Services subindustry, China Telecom'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 Telecom Operating Margin % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, China Telecom's Operating Margin % distribution charts can be found below:
* The bar in red indicates where China Telecom'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 Telecom'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 Telecom (STU:ZCH) has a Operating Margin % of 6.18% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on China Telecom and its competitors. This is 18% below median its historical median of 7.51. Over the past decade, China Telecom's Operating Margin % has ranged from 6.94 to 8.56. According to the industry distribution chart, China Telecom ranks #218 out of 367 companies in the Telecommunication Services industry, placing it in the top 59.4%.
Is China Telecom's Operating Margin % too high?
China Telecom's current Operating Margin % of 6.18% is 18% below median its 10-year median of 7.51. Over the past 10 years, this metric has ranged from a low of 6.94 to a high of 8.56. The Telecommunication Services industry median Operating Margin % is 9.73. China Telecom's value of 6.18% is 36.5% below this industry median. Based on the distribution chart, China Telecom ranks #218 out of 367 companies in the Telecommunication Services industry, which is below the industry midpoint. Overall, China Telecom has a GF Score™ of 84/100, reflecting its overall financial health beyond just this single metric.
How does China Telecom's Operating Margin % compare to TMUS and VZ?
According to the Telecommunication Services industry distribution chart, China Telecom ranks #218 out of 367 companies for Operating Margin %. This places China Telecom in the lower half of its industry. The industry median Operating Margin % is 9.73. China Telecom's value of 6.18% is 36.5% below this benchmark. Historically, China Telecom's own Operating Margin % has ranged from 6.94 to 8.56 over the past decade. While the company's 10-year median is 7.51 vs. the industry median of 9.73, China Telecom has consistently been below 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 Telecom's current Operating Margin % of 6.18% is 36.5% below 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 Telecom 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 Telecom's current Operating Margin % is 6.18%, which is 18% below median its own 10-year median of 7.51. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Telecom stock overvalued right now?
China Telecom (STU:ZCH) has a current Operating Margin % of 6.18%. The stock's GF Value™ is €0.65, compared to a current price of €0.57 — trading 13.1% below its estimated fair value. The current Operating Margin % is 6.18%, which is 18% below median its 10-year median of 7.51 and 36.5% below the Telecommunication Services industry median of 9.73. China Telecom's overall GF Score™ is 84/100 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 China Telecom (STU:ZCH), the current Operating Margin % is 6.18% 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 China Telecom (STU:ZCH) Overvalued in 2026?
Based on GuruFocus' analysis, China Telecom stock appears to be undervalued.
The current stock price of €0.57 is trading 13.1% below its estimated GF Value™ of €0.65.
Key valuation signals for STU:ZCH:
Operating Margin %: 6.18% (18% below median its 10-year median of 7.51)
GF Value™: €0.65 vs. price of €0.57 (13.1% below fair value)
Industry Position: 36.5% below the Telecommunication Services median (#218 of 367)
No single metric tells the full story. See the STU:ZCH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Telecom is the largest fixed-line operator in China, originally covering 21 southern provinces but now operating nationally. It has 201 million broadband customers, and 439 million wireless subscribers, having overtaken China Unicom to become the second-largest wireless operator in China behind China Mobile. The firm is increasing its cross-selling of products and seeing strong growth from industrial digitization services, such as internet data centers and cloud computing. Its internet data center business is already the largest in China and it is expanding overseas.
84GF Score
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