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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).
Enel Generacion Costanera's Degree of Financial Leverage for the quarter that ended in Mar. 2026 was 1.41. The higher Degree of Financial Leverage, the more volatile earnings will be.
The industry rank for Enel Generacion Costanera's Degree of Financial Leverage or its related term are showing as below:
BUE:CECO2's Degree of Financial Leverage is ranked worse than 67.54% of 499
companies
in the Utilities - Regulated industry
Industry Median: 1.04
vs BUE:CECO2: 1.41
Enel Generacion Costanera (BUE:CECO2) 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.
Enel Generacion Costanera Degree of Financial Leverage Related Terms
Enel Generacion Costanera Degree of Financial Leverage Historical Data
* Premium members only.
The historical data trend for Enel Generacion Costanera'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.
Enel Generacion Costanera Degree of Financial Leverage Chart
BUE:CECO2 vs NEE, SO, DUK: Degree of Financial Leverage Comparison
For the Utilities - Regulated Electric subindustry, Enel Generacion Costanera'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.
Enel Generacion Costanera Degree of Financial Leverage vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Enel Generacion Costanera's Degree of Financial Leverage distribution charts can be found below:
* The bar in red indicates where Enel Generacion Costanera'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 1.41 mean?
Enel Generacion Costanera (BUE:CECO2) has a Degree of Financial Leverage of 1.41 as of Mar. 2026. Degree of Financial Leverage (DFL) measures the percentage change in EPS for a unit change in EBIT. View historical data for Enel Generacion Costanera and its competitors. According to the industry distribution chart, Enel Generacion Costanera ranks #337 out of 499 companies in the Utilities - Regulated industry, placing it in the top 67.5%.
Is Enel Generacion Costanera's Degree of Financial Leverage too high?
Enel Generacion Costanera's current Degree of Financial Leverage is 1.41. The Utilities - Regulated industry median Degree of Financial Leverage is 1.04. Enel Generacion Costanera's value of 1.41 is 35.6% above this industry median. Based on the distribution chart, Enel Generacion Costanera ranks #337 out of 499 companies in the Utilities - Regulated industry, which is below the industry midpoint. Overall, Enel Generacion Costanera has a GF Score™ of 65/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Enel Generacion Costanera's Degree of Financial Leverage compare to NEE and SO?
According to the Utilities - Regulated industry distribution chart, Enel Generacion Costanera ranks #337 out of 499 companies for Degree of Financial Leverage. This places Enel Generacion Costanera in the lower half of its industry. The industry median Degree of Financial Leverage is 1.04. Enel Generacion Costanera's value of 1.41 is 35.6% 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 Utilities - Regulated company?
The median Degree of Financial Leverage among Utilities - Regulated companies is 1.04, based on 499 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. Enel Generacion Costanera's current Degree of Financial Leverage of 1.41 is 35.6% 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 Enel Generacion Costanera and its competitors. For the Utilities - Regulated industry, the median Degree of Financial Leverage is 1.04 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Enel Generacion Costanera's current Degree of Financial Leverage is 1.41. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Enel Generacion Costanera stock overvalued right now?
Based on GuruFocus' analysis, Enel Generacion Costanera (BUE:CECO2) is currently considered Modestly Overvalued. The stock's GF Value™ is ARS460.70, compared to a current price of ARS537.00 — trading 16.6% above its estimated fair value. The current Degree of Financial Leverage is 1.41 and 35.6% above the Utilities - Regulated industry median of 1.04. Enel Generacion Costanera's overall GF Score™ is 65/100 with 3 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 Enel Generacion Costanera (BUE:CECO2), the current Degree of Financial Leverage is 1.41 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 Enel Generacion Costanera (BUE:CECO2) Overvalued in 2026?
Based on GuruFocus' analysis, Enel Generacion Costanera stock appears to be overvalued.
The current stock price of ARS537.00 is trading 16.6% above its estimated GF Value™ of ARS460.70.
GuruFocus considers Enel Generacion Costanera to be Modestly Overvalued.
Key valuation signals for BUE:CECO2:
Degree of Financial Leverage: 1.41
GF Value™: ARS460.70 vs. price of ARS537.00 (16.6% above fair value)
Industry Position: 35.6% above the Utilities - Regulated median (#337 of 499)
No single metric tells the full story. See the BUE:CECO2 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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