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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).
OM Holdings's Degree of Financial Leverage for the quarter that ended in Dec. 2025 was 1.00. The higher Degree of Financial Leverage, the more volatile earnings will be.
The industry rank for OM Holdings's Degree of Financial Leverage or its related term are showing as below:
STU:7O2's Degree of Financial Leverage is ranked worse than 55.55% of 2090
companies
in the Metals & Mining industry
Industry Median: 0.905
vs STU:7O2: 1.00
OM Holdings (STU:7O2) 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.
OM Holdings Degree of Financial Leverage Related Terms
OM Holdings Degree of Financial Leverage Historical Data
* Premium members only.
The historical data trend for OM Holdings'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.
OM Holdings Degree of Financial Leverage Competitor Comparison
For the Other Industrial Metals & Mining subindustry, OM Holdings'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.
OM Holdings Degree of Financial Leverage vs Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, OM Holdings's Degree of Financial Leverage distribution charts can be found below:
* The bar in red indicates where OM Holdings'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 1.00 mean?
OM Holdings (STU:7O2) has a Degree of Financial Leverage of 1.00 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 OM Holdings and its competitors. According to the industry distribution chart, OM Holdings ranks #1161 out of 2090 companies in the Metals & Mining industry, placing it in the top 55.6%.
Is OM Holdings' Degree of Financial Leverage too high?
OM Holdings' current Degree of Financial Leverage is 1.00. The Metals & Mining industry median Degree of Financial Leverage is 0.91. OM Holdings' value of 1.00 is 10.5% above this industry median. Based on the distribution chart, OM Holdings ranks #1161 out of 2090 companies in the Metals & Mining industry, which is below the industry midpoint. Overall, OM Holdings has a GF Score™ of 40/100, reflecting its overall financial health beyond just this single metric.
How does OM Holdings' Degree of Financial Leverage compare to competitors?
According to the Metals & Mining industry distribution chart, OM Holdings ranks #1161 out of 2090 companies for Degree of Financial Leverage. This places OM Holdings in the lower half of its industry. The industry median Degree of Financial Leverage is 0.91. OM Holdings' value of 1.00 is 10.5% 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 Metals & Mining company?
The median Degree of Financial Leverage among Metals & Mining companies is 0.91, based on 2,090 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. OM Holdings's current Degree of Financial Leverage of 1.00 is 10.5% 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 OM Holdings and its competitors. For the Metals & Mining industry, the median Degree of Financial Leverage is 0.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. OM Holdings's current Degree of Financial Leverage is 1.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is OM Holdings stock overvalued right now?
OM Holdings (STU:7O2) has a current Degree of Financial Leverage of 1.00. The stock's GF Value™ is €0.10, compared to a current price of €0.00 — trading 99.5% below its estimated fair value. The current Degree of Financial Leverage is 1.00 and 10.5% above the Metals & Mining industry median of 0.91. OM Holdings' overall GF Score™ is 40/100 with 5 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 OM Holdings (STU:7O2), the current Degree of Financial Leverage is 1.00 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.
Is OM Holdings (STU:7O2) Overvalued in 2026?
Based on GuruFocus' analysis, OM Holdings stock appears to be undervalued.
The current stock price of €0.00 is trading 99.5% below its estimated GF Value™ of €0.10.
Key valuation signals for STU:7O2:
Degree of Financial Leverage: 1.00
GF Value™: €0.10 vs. price of €0.00 (99.5% below fair value)
Industry Position: 10.5% above the Metals & Mining median (#1161 of 2090)
No single metric tells the full story. See the STU:7O2 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
OM Holdings Ltd is a holding company engaged in the following three operating segments; the Mining segment includes the exploration and mining of manganese ore, the Smelting segment includes the production of manganese ferroalloys, ferrosilicon, silicon metal, and manganese sinter ore, and the Marketing and trading segment includes trading of manganese ore, manganese ferroalloys, ferrosilicon, and sinter ore. Geographically the company derives the majority of its revenue from the Asia-Pacific region followed by America, Europe and African regions.
40GF 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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