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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).
Ferronordic AB's Degree of Financial Leverage for the quarter that ended in Mar. 2026 was 0.60. The higher Degree of Financial Leverage, the more volatile earnings will be.
The industry rank for Ferronordic AB's Degree of Financial Leverage or its related term are showing as below:
CHIX:FNMs's Degree of Financial Leverage is ranked better than 77.12% of 153
companies
in the Industrial Distribution industry
Industry Median: 1.07
vs CHIX:FNMs: 0.60
Ferronordic AB (CHIX:FNMs) 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.
Ferronordic AB Degree of Financial Leverage Related Terms
Ferronordic AB Degree of Financial Leverage Historical Data
* Premium members only.
The historical data trend for Ferronordic AB'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.
CHIX:FNMS vs GWW, FAST, FERG: Degree of Financial Leverage Comparison
For the Industrial Distribution subindustry, Ferronordic AB'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.
Ferronordic AB Degree of Financial Leverage vs Industrial Distribution Industry
For the Industrial Distribution industry and Industrials sector, Ferronordic AB's Degree of Financial Leverage distribution charts can be found below:
* The bar in red indicates where Ferronordic AB'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 0.60 mean?
Ferronordic AB (CHIX:FNMS) has a Degree of Financial Leverage of 0.60 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 Ferronordic AB and its competitors. According to the industry distribution chart, Ferronordic AB ranks #35 out of 153 companies in the Industrial Distribution industry, placing it in the top 22.9%.
Is Ferronordic AB's Degree of Financial Leverage too high?
Ferronordic AB's current Degree of Financial Leverage is 0.60. The Industrial Distribution industry median Degree of Financial Leverage is 1.07. Ferronordic AB's value of 0.60 is 43.9% below this industry median. Based on the distribution chart, Ferronordic AB ranks #35 out of 153 companies in the Industrial Distribution industry, which is in the top quartile — a strong position relative to peers. Overall, Ferronordic AB has a GF Score™ of 83/100, reflecting its overall financial health beyond just this single metric.
How does Ferronordic AB's Degree of Financial Leverage compare to GWW and FAST?
According to the Industrial Distribution industry distribution chart, Ferronordic AB ranks #35 out of 153 companies for Degree of Financial Leverage. This places Ferronordic AB in the top 23% of its industry — outperforming the majority of peers. The industry median Degree of Financial Leverage is 1.07. Ferronordic AB's value of 0.60 is 43.9% below 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 Industrial Distribution company?
The median Degree of Financial Leverage among Industrial Distribution companies is 1.07, based on 153 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. Ferronordic AB's current Degree of Financial Leverage of 0.60 is 43.9% 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 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 Ferronordic AB and its competitors. For the Industrial Distribution industry, the median Degree of Financial Leverage is 1.07 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ferronordic AB's current Degree of Financial Leverage is 0.60. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ferronordic AB stock overvalued right now?
Ferronordic AB (CHIX:FNMS) has a current Degree of Financial Leverage of 0.60. The stock's GF Value™ is kr46.31, compared to a current price of kr45.90 — trading 0.9% below its estimated fair value. The current Degree of Financial Leverage is 0.60 and 43.9% below the Industrial Distribution industry median of 1.07. Ferronordic AB's overall GF Score™ is 83/100 with 7 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 Ferronordic AB (CHIX:FNMS), the current Degree of Financial Leverage is 0.60 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 Ferronordic AB (CHIX:FNMS) Overvalued in 2026?
Based on GuruFocus' analysis, Ferronordic AB stock appears to be undervalued.
The current stock price of kr45.90 is trading 0.9% below its estimated GF Value™ of kr46.31.
Key valuation signals for CHIX:FNMS:
Degree of Financial Leverage: 0.60
GF Value™: kr46.31 vs. price of kr45.90 (0.9% below fair value)
Industry Position: 43.9% below the Industrial Distribution median (#35 of 153)
No single metric tells the full story. See the CHIX:FNMS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ferronordic AB is engaged in the sales, rents, and services of construction equipment and other machinery. The company is an authorized dealer of Volvo Construction Equipment, Terex Trucks, Dressta, Mecalac, and Rottne and has also been appointed as an aftermarket dealer for Volvo and Renault Trucks and a dealer for Volvo Penta. The group has three reporting segments: USA, Germany and Kazakhstan. The majority of the revenue is generated from the USA segment.
83GF Score
Get the complete analysis for CHIX:FNMS
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