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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).
Compagnie d Entreprises CFE's Degree of Financial Leverage for the quarter that ended in Dec. 2025 was 8.06. The higher Degree of Financial Leverage, the more volatile earnings will be.
The industry rank for Compagnie d Entreprises CFE's Degree of Financial Leverage or its related term are showing as below:
LTS:0O2T's Degree of Financial Leverage is ranked worse than 96.72% of 1708
companies
in the Construction industry
Industry Median: 1.01
vs LTS:0O2T: 8.06
Compagnie d Entreprises CFE (LTS:0O2T) 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.
Compagnie d Entreprises CFE Degree of Financial Leverage Related Terms
Compagnie d Entreprises CFE Degree of Financial Leverage Historical Data
* 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.
Compagnie d Entreprises CFE Degree of Financial Leverage Chart
LTS:0O2T vs PWR, FIX, EME: Degree of Financial Leverage Comparison
For the Engineering & Construction subindustry, Compagnie d Entreprises CFE'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.
Compagnie d Entreprises CFE Degree of Financial Leverage vs Construction Industry
For the Construction industry and Industrials sector, Compagnie d Entreprises CFE's Degree of Financial Leverage distribution charts can be found below:
* The bar in red indicates where Compagnie d Entreprises CFE'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 8.06 mean?
Compagnie d Entreprises CFE (LTS:0O2T) has a Degree of Financial Leverage of 8.06 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 Compagnie d Entreprises CFE and its competitors. According to the industry distribution chart, Compagnie d Entreprises CFE ranks #1652 out of 1708 companies in the Construction industry, placing it in the top 96.7%.
Is Compagnie d Entreprises CFE's Degree of Financial Leverage too high?
Compagnie d Entreprises CFE's current Degree of Financial Leverage is 8.06. The Construction industry median Degree of Financial Leverage is 1.01. Compagnie d Entreprises CFE's value of 8.06 is 698% above this industry median. Based on the distribution chart, Compagnie d Entreprises CFE ranks #1652 out of 1708 companies in the Construction industry, which is in the bottom quartile relative to peers. Overall, Compagnie d Entreprises CFE has a GF Score™ of 70/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Compagnie d Entreprises CFE's Degree of Financial Leverage compare to PWR and FIX?
According to the Construction industry distribution chart, Compagnie d Entreprises CFE ranks #1652 out of 1708 companies for Degree of Financial Leverage. This places Compagnie d Entreprises CFE in the lower half of its industry. The industry median Degree of Financial Leverage is 1.01. Compagnie d Entreprises CFE's value of 8.06 is 698% 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 Construction company?
The median Degree of Financial Leverage among Construction companies is 1.01, based on 1,708 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. Compagnie d Entreprises CFE's current Degree of Financial Leverage of 8.06 is 698% 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 Compagnie d Entreprises CFE and its competitors. For the Construction 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. Compagnie d Entreprises CFE's current Degree of Financial Leverage is 8.06. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Compagnie d Entreprises CFE stock overvalued right now?
Based on GuruFocus' analysis, Compagnie d Entreprises CFE (LTS:0O2T) is currently considered Significantly Overvalued. The stock's GF Value™ is €6.93, compared to a current price of €11.48 — trading 65.6% above its estimated fair value. The current Degree of Financial Leverage is 8.06 and 698% above the Construction industry median of 1.01. Compagnie d Entreprises CFE's overall GF Score™ is 70/100 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 Compagnie d Entreprises CFE (LTS:0O2T), the current Degree of Financial Leverage is 8.06 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 Compagnie d Entreprises CFE (LTS:0O2T) Overvalued in 2026?
Based on GuruFocus' analysis, Compagnie d Entreprises CFE stock appears to be overvalued.
The current stock price of €11.48 is trading 65.6% above its estimated GF Value™ of €6.93.
GuruFocus considers Compagnie d Entreprises CFE to be Significantly Overvalued.
Key valuation signals for LTS:0O2T:
Degree of Financial Leverage: 8.06
GF Value™: €6.93 vs. price of €11.48 (65.6% above fair value)
Industry Position: 698% above the Construction median (#1652 of 1708)
No single metric tells the full story. See the LTS:0O2T stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Compagnie d Entreprises CFE SA is a multidisciplinary group. It operates in four segments: Real Estate Development, Multitechnics (including activities of the VMA and MOBIX divisions), Construction & Renovation, and Sustainable Investments. A majority of its revenue is generated from the Construction & Renovation segment, which includes all CFE subsidiaries active in Belgium, Poland, and the Grand Duchy of Luxembourg, which engage in the construction and renovation of office buildings, residential buildings, hospitals, hotels, schools, car parks, and industrial buildings. Geographically, the group derives maximum revenue from its business in Belgium, followed by Poland, Luxembourg, and other regions.
70GF 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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