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Emerald Horizon AGFRA:YO2 -0.87%16 Degree of Financial Leverage is 0.00 as of Dec. 2025. GuruFocus rates FRA:YO2 with a GF Score™ of 16/100. The stock has 1 warning sign investors should review. Among 2,979 Industrial Products companies, Emerald Horizon AG ranks worse than 33568.28% 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).
Emerald Horizon AG's Degree of Financial Leverage for the quarter that ended in Dec. 2025 was 0.00. The higher Degree of Financial Leverage, the more volatile earnings will be.
The industry rank for Emerald Horizon AG's Degree of Financial Leverage or its related term are showing as below:
FRA:YO2's Degree of Financial Leverage is not ranked *
in the Industrial Products industry.
Industry Median: 1 * Ranked among companies with meaningful Degree of Financial Leverage only.
Emerald Horizon AG (FRA:YO2) 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.
Emerald Horizon AG Degree of Financial Leverage Related Terms
Emerald Horizon AG Degree of Financial Leverage Historical Data
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The historical data trend for Emerald Horizon AG'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.
Emerald Horizon AG Degree of Financial Leverage Chart
Emerald Horizon AG Annual Data
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Emerald Horizon AG Quarterly Data
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FRA:YO2 vs GEV, ETN, PH: Degree of Financial Leverage Comparison
For the Specialty Industrial Machinery subindustry, Emerald Horizon AG'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.
Emerald Horizon AG Degree of Financial Leverage vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Emerald Horizon AG's Degree of Financial Leverage distribution charts can be found below:
* The bar in red indicates where Emerald Horizon AG'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 0.00 mean?
Emerald Horizon AG (FRA:YO2) has a Degree of Financial Leverage of 0.00 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 Emerald Horizon AG and its competitors. According to the industry distribution chart, Emerald Horizon AG ranks #999999 out of 2979 companies in the Industrial Products industry.
Is Emerald Horizon AG's Degree of Financial Leverage too high?
Emerald Horizon AG's current Degree of Financial Leverage is 0.00. Based on the distribution chart, Emerald Horizon AG ranks #999999 out of 2979 companies in the Industrial Products industry, which is in the bottom quartile relative to peers. Overall, Emerald Horizon AG has a GF Score™ of 16/100, reflecting its overall financial health beyond just this single metric.
How does Emerald Horizon AG's Degree of Financial Leverage compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Emerald Horizon AG ranks #999999 out of 2979 companies for Degree of Financial Leverage. This places Emerald Horizon AG in the lower half of its industry. The industry median Degree of Financial Leverage is 1.00. 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 Products company?
The median Degree of Financial Leverage among Industrial Products companies is 1.00, based on 2,979 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 Emerald Horizon AG and its competitors. For the Industrial Products 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. Emerald Horizon AG's current Degree of Financial Leverage is 0.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Emerald Horizon AG stock overvalued right now?
Emerald Horizon AG (FRA:YO2) has a current Degree of Financial Leverage of 0.00. The current Degree of Financial Leverage is 0.00. Emerald Horizon AG's overall GF Score™ is 16/100 with 1 warning sign 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 Emerald Horizon AG (FRA:YO2), the current Degree of Financial Leverage is 0.00 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.
Emerald Horizon AG develops technologies for decarbonizing the energy supply under the SMRX brand-ranging from hybrid energy storage systems to next-generation modular reactors. The company aims to provide safe, scalable, and globally deployable baseload energy, free from the drawbacks of conventional nuclear technology. Its technologies under development include ADES, an accelerator-driven thorium-based nuclear power system, and CALstore, a molten-salt thermal energy storage system. The company also develops the DUALstore PLUS system, which combines energy storage technologies with an AI-based multicontrol unit.
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