Telemasters HoldingsJSE:TLM 64 ROE % is 2.28% as of Dec. 2025, which is 3% above its 10-year median of 2.22. GuruFocus rates JSE:TLM with a GF Score™ of 64/100 and a GF Value™ of R1.10 (Modestly Overvalued). The stock has 3 warning signs investors should review. Among 346 Telecommunication Services companies, Telemasters Holdings ranks worse than 70.81% on this metric.
The historical rank and industry rank for Telemasters Holdings's ROE % or its related term are showing as below:
JSE:TLM'
s ROE % Range Over the Past 10 Years
Min: -11.8 Med: 2.22 Max: 8.81
Current: 2.05
During the past 13 years, Telemasters Holdings's highest ROE % was 8.81%. The lowest was -11.80%. And the median was 2.22%.
JSE:TLM's ROE % is ranked worse than 70.81% of 346
companies
in the Telecommunication Services industry
Industry Median: 7.38
vs JSE:TLM: 2.05
Telemasters Holdings (JSE:TLM) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is two times the semi-annual (Dec. 2025) net income data. The Revenue data used here is two times the semi-annual (Dec. 2025) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
* 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.
For the Telecom Services subindustry, Telemasters Holdings's ROE %, along with its competitors' market caps and ROE % 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.
Telemasters Holdings ROE % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Telemasters Holdings's ROE % distribution charts can be found below:
* The bar in red indicates where Telemasters Holdings's ROE % falls into.
* 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.
In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is two times the semi-annual (Dec. 2025) net income data.
ROE % is displayed in the 30-year financial page.
Telemasters Holdings (JSE:TLM) has a ROE % of 2.28% as of Dec. 2025. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Telemasters Holdings and its competitors. This is near median its historical median of 2.22. According to the industry distribution chart, Telemasters Holdings ranks #245 out of 346 companies in the Telecommunication Services industry, placing it in the top 70.8%.
Is Telemasters Holdings' ROE % too high?
Telemasters Holdings' current ROE % of 2.28% is near median its 10-year median of 2.22. The Telecommunication Services industry median ROE % is 7.38. Telemasters Holdings' value of 2.28% is 69.1% below this industry median. Based on the distribution chart, Telemasters Holdings ranks #245 out of 346 companies in the Telecommunication Services industry, which is below the industry midpoint. Overall, Telemasters Holdings has a GF Score™ of 64/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Telemasters Holdings' ROE % compare to TMUS and VZ?
According to the Telecommunication Services industry distribution chart, Telemasters Holdings ranks #245 out of 346 companies for ROE %. This places Telemasters Holdings in the lower half of its industry. The industry median ROE % is 7.38. Telemasters Holdings' value of 2.28% is 69.1% below this benchmark. While the company's 10-year median is 2.22 vs. the industry median of 7.38, Telemasters Holdings 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 ROE % for a Telecommunication Services company?
The median ROE % among Telecommunication Services companies is 7.38, based on 346 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Telemasters Holdings's current ROE % of 2.28% is 69.1% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Telemasters Holdings and its competitors. For the Telecommunication Services industry, the median ROE % is 7.38 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Telemasters Holdings's current ROE % is 2.28%, which is near median its own 10-year median of 2.22. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Telemasters Holdings stock overvalued right now?
Based on GuruFocus' analysis, Telemasters Holdings (JSE:TLM) is currently considered Modestly Overvalued. The stock's GF Value™ is R1.10, compared to a current price of R1.30 — trading 18.2% above its estimated fair value. The current ROE % is 2.28%, which is near median its 10-year median of 2.22 and 69.1% below the Telecommunication Services industry median of 7.38. Telemasters Holdings' overall GF Score™ is 64/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For Telemasters Holdings (JSE:TLM), the current ROE % is 2.28% 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 Telemasters Holdings (JSE:TLM) Overvalued in 2026?
Based on GuruFocus' analysis, Telemasters Holdings stock appears to be overvalued.
The current stock price of R1.30 is trading 18.2% above its estimated GF Value™ of R1.10.
GuruFocus considers Telemasters Holdings to be Modestly Overvalued.
Key valuation signals for JSE:TLM:
ROE %: 2.28% (near median its 10-year median of 2.22)
GF Value™: R1.10 vs. price of R1.30 (18.2% above fair value)
Industry Position: 69.1% below the Telecommunication Services median (#245 of 346)
No single metric tells the full story. See the JSE:TLM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Telemasters Holdings Ltd is a diversified technology investment company. It provides comprehensive telecommunications services including internet connectivity, cloud solutions, and data storage tailored for businesses across South Africa. The company's reporting segments are: ICT Managed Solutions, Data Centre Services and Corporate. It generates the majority of revenue from the ICT Managed Solutions segment, which provides i) ICT managed solutions to medium and small enterprises through a comprehensive suite of products and services focused on digital connectivity and ii) Data Centre Services.
64GF Score
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