Degree of Financial Leverage (DFL) measures the percentage change in EPS for a unit change in Earnings Before Interest and Taxes (EBIT).
Silicon Optronics's Degree of Financial Leverage for the quarter that ended in Dec. 2025 was 0.94. The higher Degree of Financial Leverage, the more volatile earnings will be.
The industry rank for Silicon Optronics's Degree of Financial Leverage or its related term are showing as below:
TPE:3530's Degree of Financial Leverage is ranked better than 55.2% of 1009
companies
in the Semiconductors industry
Industry Median: 0.97
vs TPE:3530: 0.94
Silicon Optronics (TPE:3530) 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.
Silicon Optronics Degree of Financial Leverage Related Terms
Silicon Optronics Degree of Financial Leverage Historical Data
* Premium members only.
The historical data trend for Silicon Optronics'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.
Silicon Optronics Degree of Financial Leverage Chart
TPE:3530 vs NVDA, AVGO, MU: Degree of Financial Leverage Comparison
For the Semiconductors subindustry, Silicon Optronics'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.
Silicon Optronics Degree of Financial Leverage vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Silicon Optronics's Degree of Financial Leverage distribution charts can be found below:
* The bar in red indicates where Silicon Optronics'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 0.94 mean?
Silicon Optronics (TPE:3530) has a Degree of Financial Leverage of 0.94 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 Silicon Optronics and its competitors. According to the industry distribution chart, Silicon Optronics ranks #452 out of 1009 companies in the Semiconductors industry, placing it in the top 44.8%.
Is Silicon Optronics' Degree of Financial Leverage too high?
Silicon Optronics' current Degree of Financial Leverage is 0.94. The Semiconductors industry median Degree of Financial Leverage is 0.97. Silicon Optronics' value of 0.94 is 3.1% below this industry median. Based on the distribution chart, Silicon Optronics ranks #452 out of 1009 companies in the Semiconductors industry, which is above the industry midpoint. Overall, Silicon Optronics has a GF Score™ of 72/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Silicon Optronics' Degree of Financial Leverage compare to NVDA and AVGO?
According to the Semiconductors industry distribution chart, Silicon Optronics ranks #452 out of 1009 companies for Degree of Financial Leverage. This puts Silicon Optronics in the upper half of its industry. The industry median Degree of Financial Leverage is 0.97. Silicon Optronics' value of 0.94 is 3.1% 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 Semiconductors company?
The median Degree of Financial Leverage among Semiconductors companies is 0.97, based on 1,009 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. Silicon Optronics's current Degree of Financial Leverage of 0.94 is 3.1% 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 Silicon Optronics and its competitors. For the Semiconductors industry, the median Degree of Financial Leverage is 0.97 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Silicon Optronics's current Degree of Financial Leverage is 0.94. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Silicon Optronics stock overvalued right now?
Based on GuruFocus' analysis, Silicon Optronics (TPE:3530) is currently considered Modestly Undervalued. The stock's GF Value™ is NT$83.84, compared to a current price of NT$73.60 — trading 12.2% below its estimated fair value. The current Degree of Financial Leverage is 0.94 and 3.1% below the Semiconductors industry median of 0.97. Silicon Optronics' overall GF Score™ is 72/100 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 Silicon Optronics (TPE:3530), the current Degree of Financial Leverage is 0.94 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 Silicon Optronics (TPE:3530) Overvalued in 2026?
Based on GuruFocus' analysis, Silicon Optronics stock appears to be undervalued.
The current stock price of NT$73.60 is trading 12.2% below its estimated GF Value™ of NT$83.84.
GuruFocus considers Silicon Optronics to be Modestly Undervalued.
Key valuation signals for TPE:3530:
Degree of Financial Leverage: 0.94
GF Value™: NT$83.84 vs. price of NT$73.60 (12.2% below fair value)
Industry Position: 3.1% below the Semiconductors median (#452 of 1009)
No single metric tells the full story. See the TPE:3530 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Silicon Optronics Inc is engaged in the design, development, and sale of complementary metal-oxide semiconductors. Its products include image sensors and shutters. The company derives revenue from complementary metal-oxide semiconductors. Geographically, it operates in Hong Kong, the United States, Taiwan, and other countries, with the majority of revenue deriving from Hong Kong.
72GF Score
Get the complete analysis for TPE:3530
Degree of Financial Leverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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