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Degree of Financial Leverage (DFL) measures the percentage change in EPS for a unit change in Earnings Before Interest and Taxes (EBIT).
North East Rubber PCL's Degree of Financial Leverage for the quarter that ended in Jun. 2026 was 1.08. The higher Degree of Financial Leverage, the more volatile earnings will be.
The industry rank for North East Rubber PCL's Degree of Financial Leverage or its related term are showing as below:
BKK:NER-R's Degree of Financial Leverage is ranked worse than 54.66% of 1588
companies
in the Chemicals industry
Industry Median: 1.01
vs BKK:NER-R: 1.08
North East Rubber PCL (BKK:NER-R) 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.
North East Rubber PCL Degree of Financial Leverage Related Terms
North East Rubber PCL Degree of Financial Leverage Historical Data
* Premium members only.
The historical data trend for North East Rubber PCL'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.
North East Rubber PCL Degree of Financial Leverage Chart
BKK:NER-R vs LIN, SHW, ECL: Degree of Financial Leverage Comparison
For the Specialty Chemicals subindustry, North East Rubber PCL'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.
North East Rubber PCL Degree of Financial Leverage vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, North East Rubber PCL's Degree of Financial Leverage distribution charts can be found below:
* The bar in red indicates where North East Rubber PCL'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 1.08 mean?
North East Rubber PCL (BKK:NER-R) has a Degree of Financial Leverage of 1.08 as of Jun. 2026. Degree of Financial Leverage (DFL) measures the percentage change in EPS for a unit change in EBIT. View historical data for North East Rubber PCL and its competitors. According to the industry distribution chart, North East Rubber PCL ranks #868 out of 1588 companies in the Chemicals industry, placing it in the top 54.7%.
Is North East Rubber PCL's Degree of Financial Leverage too high?
North East Rubber PCL's current Degree of Financial Leverage is 1.08. The Chemicals industry median Degree of Financial Leverage is 1.01. North East Rubber PCL's value of 1.08 is 6.9% above this industry median. Based on the distribution chart, North East Rubber PCL ranks #868 out of 1588 companies in the Chemicals industry, which is below the industry midpoint. Overall, North East Rubber PCL has a GF Score™ of 86/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does North East Rubber PCL's Degree of Financial Leverage compare to LIN and SHW?
According to the Chemicals industry distribution chart, North East Rubber PCL ranks #868 out of 1588 companies for Degree of Financial Leverage. This places North East Rubber PCL in the lower half of its industry. The industry median Degree of Financial Leverage is 1.01. North East Rubber PCL's value of 1.08 is 6.9% 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 a Chemicals company?
The median Degree of Financial Leverage among Chemicals companies is 1.01, based on 1,588 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. North East Rubber PCL's current Degree of Financial Leverage of 1.08 is 6.9% 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 North East Rubber PCL and its competitors. For the Chemicals industry, the median Degree of Financial Leverage is 1.01 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. North East Rubber PCL's current Degree of Financial Leverage is 1.08. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is North East Rubber PCL stock overvalued right now?
Based on GuruFocus' analysis, North East Rubber PCL (BKK:NER-R) is currently considered Fairly Valued. The stock's GF Value™ is ฿5.04, compared to a current price of ฿4.80 — trading 4.8% below its estimated fair value. The current Degree of Financial Leverage is 1.08 and 6.9% above the Chemicals industry median of 1.01. North East Rubber PCL's overall GF Score™ is 86/100 with 10 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 North East Rubber PCL (BKK:NER-R), the current Degree of Financial Leverage is 1.08 as of Jun. 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 North East Rubber PCL (BKK:NER-R) Overvalued in 2026?
Based on GuruFocus' analysis, North East Rubber PCL stock appears to be undervalued.
The current stock price of ฿4.80 is trading 4.8% below its estimated GF Value™ of ฿5.04.
GuruFocus considers North East Rubber PCL to be Fairly Valued.
Key valuation signals for BKK:NER-R:
Degree of Financial Leverage: 1.08
GF Value™: ฿5.04 vs. price of ฿4.80 (4.8% below fair value)
Industry Position: 6.9% above the Chemicals median (#868 of 1588)
No single metric tells the full story. See the BKK:NER-R stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
North East Rubber PCL Company and its subsidiary have a single core operating segment (identified by internal reporting segments), i.e., manufacturing and sales of rubber smoked sheets, skim block rubbers, and other rubber products, both domestically and abroad. Geographically, the maximum revenue is generated from Thailand.
86GF Score
Get the complete analysis for BKK:NER-R
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