AustalAUTLF -0.33%68 Degree of Financial Leverage is 2.04 as of Dec. 2025. GuruFocus rates AUTLF with a GF Score™ of 68/100 and a GF Value™ of $2.12 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 339 Aerospace & Defense companies, Austal ranks worse than 84.07% 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).
Austal's Degree of Financial Leverage for the quarter that ended in Dec. 2025 was 2.04. The higher Degree of Financial Leverage, the more volatile earnings will be.
The industry rank for Austal's Degree of Financial Leverage or its related term are showing as below:
AUTLF's Degree of Financial Leverage is ranked worse than 84.07% of 339
companies
in the Aerospace & Defense industry
Industry Median: 1
vs AUTLF: 2.04
Austal (OTCPK:AUTLF) 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.
Austal Degree of Financial Leverage Related Terms
Austal Degree of Financial Leverage Historical Data
* Premium members only.
The historical data trend for Austal'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.
AUTLF vs GE, RTX, BA: Degree of Financial Leverage Comparison
For the Aerospace & Defense subindustry, Austal'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.
Austal Degree of Financial Leverage vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Austal's Degree of Financial Leverage distribution charts can be found below:
* The bar in red indicates where Austal'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 2.04 mean?
Austal (AUTLF) has a Degree of Financial Leverage of 2.04 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 Austal and its competitors. According to the industry distribution chart, Austal ranks #285 out of 339 companies in the Aerospace & Defense industry, placing it in the top 84.1%.
Is Austal's Degree of Financial Leverage too high?
Austal's current Degree of Financial Leverage is 2.04. The Aerospace & Defense industry median Degree of Financial Leverage is 1.00. Austal's value of 2.04 is 104% above this industry median. Based on the distribution chart, Austal ranks #285 out of 339 companies in the Aerospace & Defense industry, which is in the bottom quartile relative to peers. Overall, Austal has a GF Score™ of 68/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Austal's Degree of Financial Leverage compare to GE and RTX?
According to the Aerospace & Defense industry distribution chart, Austal ranks #285 out of 339 companies for Degree of Financial Leverage. This places Austal in the lower half of its industry. The industry median Degree of Financial Leverage is 1.00. Austal's value of 2.04 is 104% above this benchmark. 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 an Aerospace & Defense company?
The median Degree of Financial Leverage among Aerospace & Defense companies is 1.00, based on 339 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. Austal's current Degree of Financial Leverage of 2.04 is 104% 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 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 Austal and its competitors. For the Aerospace & Defense industry, the median Degree of Financial Leverage is 1.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Austal's current Degree of Financial Leverage is 2.04. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Austal stock overvalued right now?
Based on GuruFocus' analysis, Austal (AUTLF) is currently considered Significantly Overvalued. The stock's GF Value™ is $2.12, compared to a current price of $3.00 — trading 41.5% above its estimated fair value. The current Degree of Financial Leverage is 2.04 and 104% above the Aerospace & Defense industry median of 1.00. Austal'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 Degree of Financial Leverage calculated?
Degree of Financial Leverage is calculated from a company's financial statements. For Austal (AUTLF), the current Degree of Financial Leverage is 2.04 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 Austal (AUTLF) Overvalued in 2026?
Based on GuruFocus' analysis, Austal stock appears to be overvalued.
The current stock price of $3.00 is trading 41.5% above its estimated GF Value™ of $2.12.
GuruFocus considers Austal to be Significantly Overvalued.
Key valuation signals for AUTLF:
Degree of Financial Leverage: 2.04
GF Value™: $2.12 vs. price of $3.00 (41.5% above fair value)
Industry Position: 104% above the Aerospace & Defense median (#285 of 339)
No single metric tells the full story. See the AUTLF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Austal Ltd is engaged in designing, constructing, and supporting revolutionary defense and commercial vessels. The company designs, constructs, and supports passenger ferries, vehicle passenger ferries, and offshore and windfarm vessels; naval vessels; naval surface warfare combatants; and patrol boats for government law enforcement and border protection agencies. Its reportable segments are USA Shipbuilding; USA Support; Australasia Shipbuilding and Australasia Support. Maximum revenue is generated from its USA Shipbuilding segment which manufactures high performance defence vessels for U.S. Navy and Coast Guard. Geographically, the company derives a majority of its revenue from the United States of America and the rest from Australia, Europe, Asia, South America, and the Middle East.
68GF Score
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Degree of Financial Leverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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