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Sagimet BiosciencesSTU:0O2 -1.27%18 Degree of Financial Leverage is 0.93 as of Mar. 2026. GuruFocus rates STU:0O2 with a GF Score™ of 18/100 (Fairly Valued). The stock has 2 warning signs investors should review. Among 1,341 Biotechnology companies, Sagimet Biosciences ranks better than 51.68% 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).
Sagimet Biosciences's Degree of Financial Leverage for the quarter that ended in Mar. 2026 was 0.93. The higher Degree of Financial Leverage, the more volatile earnings will be.
The industry rank for Sagimet Biosciences's Degree of Financial Leverage or its related term are showing as below:
STU:0O2's Degree of Financial Leverage is ranked better than 51.68% of 1341
companies
in the Biotechnology industry
Industry Median: 0.95
vs STU:0O2: 0.93
Sagimet Biosciences (STU:0O2) 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.
Sagimet Biosciences Degree of Financial Leverage Related Terms
Sagimet Biosciences Degree of Financial Leverage Historical Data
* Premium members only.
The historical data trend for Sagimet Biosciences'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.
Sagimet Biosciences Degree of Financial Leverage Chart
STU:0O2 vs EDIT, AUTL, FBRX: Degree of Financial Leverage Comparison
For the Biotechnology subindustry, Sagimet Biosciences'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.
Sagimet Biosciences Degree of Financial Leverage vs Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Sagimet Biosciences's Degree of Financial Leverage distribution charts can be found below:
* The bar in red indicates where Sagimet Biosciences'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 0.93 mean?
Sagimet Biosciences (STU:0O2) has a Degree of Financial Leverage of 0.93 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 Sagimet Biosciences and its competitors. According to the industry distribution chart, Sagimet Biosciences ranks #648 out of 1341 companies in the Biotechnology industry, placing it in the top 48.3%.
Is Sagimet Biosciences' Degree of Financial Leverage too high?
Sagimet Biosciences' current Degree of Financial Leverage is 0.93. The Biotechnology industry median Degree of Financial Leverage is 0.95. Sagimet Biosciences' value of 0.93 is 2.1% below this industry median. Based on the distribution chart, Sagimet Biosciences ranks #648 out of 1341 companies in the Biotechnology industry, which is above the industry midpoint. Overall, Sagimet Biosciences has a GF Score™ of 18/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Sagimet Biosciences' Degree of Financial Leverage compare to EDIT and AUTL?
According to the Biotechnology industry distribution chart, Sagimet Biosciences ranks #648 out of 1341 companies for Degree of Financial Leverage. This puts Sagimet Biosciences in the upper half of its industry. The industry median Degree of Financial Leverage is 0.95. Sagimet Biosciences' value of 0.93 is 2.1% 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 a Biotechnology company?
The median Degree of Financial Leverage among Biotechnology companies is 0.95, based on 1,341 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. Sagimet Biosciences's current Degree of Financial Leverage of 0.93 is 2.1% 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 Sagimet Biosciences and its competitors. For the Biotechnology industry, the median Degree of Financial Leverage is 0.95 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sagimet Biosciences's current Degree of Financial Leverage is 0.93. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sagimet Biosciences stock overvalued right now?
Based on GuruFocus' analysis, Sagimet Biosciences (STU:0O2) is currently considered Fairly Valued. The current Degree of Financial Leverage is 0.93 and 2.1% below the Biotechnology industry median of 0.95. Sagimet Biosciences' overall GF Score™ is 18/100 with 2 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 Sagimet Biosciences (STU:0O2), the current Degree of Financial Leverage is 0.93 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.
Sagimet Biosciences Inc a clinical-stage biopharmaceutical company developing novel therapeutics called fatty acid synthase (FASN) inhibitors that target dysfunctional metabolic and fibrotic pathways in diseases resulting from the overproduction of the fatty acid, palmitate. Its drug candidate, denifanstat, is an oral, once-daily pill and selective FASN inhibitor in development for the treatment of metabolic dysfunction-associated steatohepatitis (MASH), acne and select forms of cancer. Its second FASN inhibitor, TVB-3567, is a potent and selective small molecule FASN inhibitor in development for acne. It operates as a single business segment, developing and commercializing therapeutics for the treatment of MASH and other diseases where FASN plays a pathogenic role.
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