Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Oracle EnergySTU:O2EM 23 Degree of Financial Leverage is 2.32 as of Mar. 2026. GuruFocus rates STU:O2EM with a GF Score™ of 23/100. The stock has 2 warning signs investors should review. Among 929 Oil & Gas companies, Oracle Energy ranks worse than 85.58% 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).
Oracle Energy's Degree of Financial Leverage for the quarter that ended in Mar. 2026 was 2.32. The higher Degree of Financial Leverage, the more volatile earnings will be.
The industry rank for Oracle Energy's Degree of Financial Leverage or its related term are showing as below:
STU:O2EM's Degree of Financial Leverage is ranked worse than 85.58% of 929
companies
in the Oil & Gas industry
Industry Median: 1.01
vs STU:O2EM: 2.32
Oracle Energy (STU:O2EM) 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.
Oracle Energy Degree of Financial Leverage Related Terms
Oracle Energy Degree of Financial Leverage Historical Data
* Premium members only.
The historical data trend for Oracle Energy'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.
STU:O2EM vs COP, EOG, FANG: Degree of Financial Leverage Comparison
For the Oil & Gas E&P subindustry, Oracle Energy'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.
Oracle Energy Degree of Financial Leverage vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Oracle Energy's Degree of Financial Leverage distribution charts can be found below:
* The bar in red indicates where Oracle Energy'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 2.32 mean?
Oracle Energy (STU:O2EM) has a Degree of Financial Leverage of 2.32 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 Oracle Energy and its competitors. According to the industry distribution chart, Oracle Energy ranks #795 out of 929 companies in the Oil & Gas industry, placing it in the top 85.6%.
Is Oracle Energy's Degree of Financial Leverage too high?
Oracle Energy's current Degree of Financial Leverage is 2.32. The Oil & Gas industry median Degree of Financial Leverage is 1.01. Oracle Energy's value of 2.32 is 129.7% above this industry median. Based on the distribution chart, Oracle Energy ranks #795 out of 929 companies in the Oil & Gas industry, which is in the bottom quartile relative to peers. Overall, Oracle Energy has a GF Score™ of 23/100, reflecting its overall financial health beyond just this single metric.
How does Oracle Energy's Degree of Financial Leverage compare to COP and EOG?
According to the Oil & Gas industry distribution chart, Oracle Energy ranks #795 out of 929 companies for Degree of Financial Leverage. This places Oracle Energy in the lower half of its industry. The industry median Degree of Financial Leverage is 1.01. Oracle Energy's value of 2.32 is 129.7% 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 an Oil & Gas company?
The median Degree of Financial Leverage among Oil & Gas companies is 1.01, based on 929 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. Oracle Energy's current Degree of Financial Leverage of 2.32 is 129.7% 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 Oracle Energy and its competitors. For the Oil & Gas 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. Oracle Energy's current Degree of Financial Leverage is 2.32. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Oracle Energy stock overvalued right now?
Oracle Energy (STU:O2EM) has a current Degree of Financial Leverage of 2.32. The current Degree of Financial Leverage is 2.32 and 129.7% above the Oil & Gas industry median of 1.01. Oracle Energy's overall GF Score™ is 23/100 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 Oracle Energy (STU:O2EM), the current Degree of Financial Leverage is 2.32 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.
Oracle Energy Corp is classified as an oil and gas development company. The Company is actively reviewing and evaluating exploration and development opportunities in the oil and natural gas industry. It continues to evaluate options and is now considering other mineral exploration, including gold and copper.
23GF Score
Get the complete analysis for STU:O2EM
Degree of Financial Leverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
STU:O2EM has been successfully added to your 
