Critical Minerals GroupASX:CMG -3.23% Degree of Financial Leverage is -0.17 as of Dec. 2025. The stock has 2 warning signs investors should review. Among 2,086 Metals & Mining companies, Critical Minerals Group ranks better than 82.5% on this metric.
Degree of Financial Leverage (DFL) measures the percentage change in EPS for a unit change in Earnings Before Interest and Taxes (EBIT).
Critical Minerals Group's Degree of Financial Leverage for the quarter that ended in Dec. 2025 was -0.17. The higher Degree of Financial Leverage, the more volatile earnings will be.
The industry rank for Critical Minerals Group's Degree of Financial Leverage or its related term are showing as below:
ASX:CMG's Degree of Financial Leverage is ranked better than 82.5% of 2086
companies
in the Metals & Mining industry
Industry Median: 0.9
vs ASX:CMG: -0.17
Critical Minerals Group (ASX:CMG) Degree of Financial Leverage Explanation
Degree of Financial Leverage (DFL) is a leverage ratio that measures the sensitivity of a company’s Earnings per Share (EPS) to fluctuations in its operating income, also referred to as Earnings Before Interest and Taxes (EBIT), resulting from adjustments in its capital structure. DFL is an essential tool for companies to assess the appropriate level of debt or financial leverage in their capital structure. When EBIT remains relatively stable, it results in stable earnings and earnings per share. In such cases, the company may consider taking on substantial debt. However, for companies operating in industries with significant fluctuations in EBIT, it is advisable to keep debt at a manageable level.
The higher Degree of Financial Leverage, the more volatile earnings will be. Because interest is a fixed expense, leverage can amplify earnings and EPS. This is beneficial when EBIT is growing, but it can become problematic in tough economic conditions when EBIT is under pressure.
Be Aware
The use of financial leverage varies across different industries and business sectors, and the application of Degree of Financial Leverage (DFL) should be adjusted accordingly.
Critical Minerals Group Degree of Financial Leverage Related Terms
Critical Minerals Group Degree of Financial Leverage Historical Data
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The historical data trend for Critical Minerals Group's Degree of Financial Leverage 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.
Critical Minerals Group Degree of Financial Leverage Chart
Critical Minerals Group Degree of Financial Leverage Competitor Comparison
For the Other Industrial Metals & Mining subindustry, Critical Minerals Group's Degree of Financial Leverage, along with its competitors' market caps and Degree of Financial Leverage 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.
Critical Minerals Group Degree of Financial Leverage vs Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Critical Minerals Group's Degree of Financial Leverage distribution charts can be found below:
* The bar in red indicates where Critical Minerals Group's Degree of Financial Leverage 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.
** TTM data of EPS and EBIT was used to calculate Degree of Financial Leverage.
*** Please be aware that the Degree of Financial Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
What does a Degree of Financial Leverage of -0.17 mean?
Critical Minerals Group (ASX:CMG) has a Degree of Financial Leverage of -0.17 as of Dec. 2025. Degree of Financial Leverage (DFL) measures the percentage change in EPS for a unit change in EBIT. View historical data for Critical Minerals Group and its competitors. According to the industry distribution chart, Critical Minerals Group ranks #365 out of 2086 companies in the Metals & Mining industry, placing it in the top 17.5%.
Is Critical Minerals Group's Degree of Financial Leverage too high?
Critical Minerals Group's current Degree of Financial Leverage is -0.17. Based on the distribution chart, Critical Minerals Group ranks #365 out of 2086 companies in the Metals & Mining industry, which is in the top quartile — a strong position relative to peers.
How does Critical Minerals Group's Degree of Financial Leverage compare to competitors?
According to the Metals & Mining industry distribution chart, Critical Minerals Group ranks #365 out of 2086 companies for Degree of Financial Leverage. This places Critical Minerals Group in the top 18% of its industry — outperforming the majority of peers. The industry median Degree of Financial Leverage is 0.90. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Degree of Financial Leverage for a Metals & Mining company?
The median Degree of Financial Leverage among Metals & Mining companies is 0.90, based on 2,086 companies in the industry. Companies in the top quartile (top 25%) have a Degree of Financial Leverage significantly above this median, while those in the bottom quartile fall well below. However, Degree of Financial Leverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Degree of Financial Leverage mean?
A high Degree of Financial Leverage can signal that a stock is expensive relative to its fundamentals. Degree of Financial Leverage (DFL) measures the percentage change in EPS for a unit change in EBIT. View historical data for Critical Minerals Group and its competitors. For the Metals & Mining industry, the median Degree of Financial Leverage is 0.90 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Critical Minerals Group's current Degree of Financial Leverage is -0.17. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Critical Minerals Group stock overvalued right now?
Critical Minerals Group (ASX:CMG) has a current Degree of Financial Leverage of -0.17. The current Degree of Financial Leverage is -0.17. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Degree of Financial Leverage calculated?
Degree of Financial Leverage is calculated from a company's financial statements. For Critical Minerals Group (ASX:CMG), the current Degree of Financial Leverage is -0.17 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.
Critical Minerals Group Ltd is engaged in the exploration, and evaluation of mineral resources, including the development of these resources and associated downstream manufacturing. Its projects include Lindfield Project (EPM 27872), Whinmoor Project (EPM 28631), Lara Downs Project (EPM 28635), Lindfield North Project (EPM 28636), Figtree Creek Project (EPM 27998), and Lorena Surrounds Project (EPM 27999). The comapny is organized into one operating segment, being mining and exploration operations. It operates in one geographical segment being Australia.
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