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.
Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue.
Australian Strategic Materials's Degree of Operating Leverage for the quarter that ended in Dec. 2025 was -0.08. The higher Degree of Operating Leverage, the higher operating risk the company will take.
The industry rank for Australian Strategic Materials's Degree of Operating Leverage or its related term are showing as below:
ASMMF's Degree of Operating Leverage is ranked better than 69.99% of 743
companies
in the Metals & Mining industry
Industry Median: 1.3
vs ASMMF: -0.08
Australian Strategic Materials (OTCPK:ASMMF) Degree of Operating Leverage Explanation
Degree of Operating Leverage (DOL) is a leverage ratio that measures the sensitivity of a company’s operting income, also referred to as Earnings Before Interest and Taxes (EBIT), to fluctuations in its Revenue. DOL is a method used to quantify a company’s operating risk. This risk is related to the company's structure of variable costs and fixed costs. Since the fixed costs do not allow the company to adjust the operating costs, the operating risk rises with a higher fixed-to-variable costs proportion.
A high Degree of Operating Leverage indicates that the company’s fixed costs exceed its variable costs. By increasing the sales, the company can earn more profits. In addition, the company must be able to maintain relatively high sales to cover all fixed costs.
Be Aware
The use of operating leverage varies across different industries and business sectors, and the application of Degree of Operating Leverage (DOL) should be adjusted accordingly.
Australian Strategic Materials Degree of Operating Leverage Related Terms
Australian Strategic Materials Degree of Operating 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.
Australian Strategic Materials Degree of Operating Leverage Chart
Australian Strategic Materials Degree of Operating Leverage Competitor Comparison
For the Other Industrial Metals & Mining subindustry, Australian Strategic Materials's Degree of Operating Leverage, along with its competitors' market caps and Degree of Operating 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.
Australian Strategic Materials Degree of Operating Leverage vs Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Australian Strategic Materials's Degree of Operating Leverage distribution charts can be found below:
* The bar in red indicates where Australian Strategic Materials's Degree of Operating 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 EBIT and Revenue was used to calculate Degree of Operating Leverage.
*** Please be aware that the Degree of Operating 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 Operating Leverage of -0.08 mean?
Australian Strategic Materials (ASMMF) has a Degree of Operating Leverage of -0.08 as of Dec. 2025. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for Australian Strategic Materials and its competitors. According to the industry distribution chart, Australian Strategic Materials ranks #223 out of 743 companies in the Metals & Mining industry, placing it in the top 30%.
Is Australian Strategic Materials' Degree of Operating Leverage too high?
Australian Strategic Materials' current Degree of Operating Leverage is -0.08. Based on the distribution chart, Australian Strategic Materials ranks #223 out of 743 companies in the Metals & Mining industry, which is above the industry midpoint. Overall, Australian Strategic Materials has a GF Score™ of 32/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Australian Strategic Materials' Degree of Operating Leverage compare to competitors?
According to the Metals & Mining industry distribution chart, Australian Strategic Materials ranks #223 out of 743 companies for Degree of Operating Leverage. This puts Australian Strategic Materials in the upper half of its industry. The industry median Degree of Operating Leverage is 1.30. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Degree of Operating Leverage for a Metals & Mining company?
The median Degree of Operating Leverage among Metals & Mining companies is 1.30, based on 743 companies in the industry. Companies in the top quartile (top 25%) have a Degree of Operating Leverage significantly above this median, while those in the bottom quartile fall well below. However, Degree of Operating Leverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Degree of Operating Leverage mean?
A high Degree of Operating Leverage can signal that a stock is expensive relative to its fundamentals. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for Australian Strategic Materials and its competitors. For the Metals & Mining industry, the median Degree of Operating Leverage is 1.30 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Australian Strategic Materials's current Degree of Operating Leverage is -0.08. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Australian Strategic Materials stock overvalued right now?
Based on GuruFocus' analysis, Australian Strategic Materials (ASMMF) is currently considered Modestly Undervalued. The stock's GF Value™ is $1.00, compared to a current price of $0.85 — trading 15.5% below its estimated fair value. The current Degree of Operating Leverage is -0.08. Australian Strategic Materials' overall GF Score™ is 32/100 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 Operating Leverage calculated?
Degree of Operating Leverage is calculated from a company's financial statements. For Australian Strategic Materials (ASMMF), the current Degree of Operating Leverage is -0.08 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 Australian Strategic Materials (ASMMF) Overvalued in 2026?
Based on GuruFocus' analysis, Australian Strategic Materials stock appears to be undervalued.
The current stock price of $0.85 is trading 15.5% below its estimated GF Value™ of $1.00.
GuruFocus considers Australian Strategic Materials to be Modestly Undervalued.
Key valuation signals for ASMMF:
Degree of Operating Leverage: -0.08
GF Value™: $1.00 vs. price of $0.85 (15.5% below fair value)
No single metric tells the full story. See the ASMMF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Australian Strategic Materials Ltd is engaged in the business of producing and mining specialty metal and oxides. The product portfolio includes neodymium, praseodymium, zirconium, hafnium, dysprosium, terbium and niobium oxides. Its Dubbo Project includes Central Western New South Wales, Australia. The company's segment includes Corporate, Dubbo, and Korea. The company generates majority of its revenue from Korea, which includes the Korean Metals Plant.
32GF Score
Get the complete analysis for ASMMF
Degree of Operating 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
ASMMF has been successfully added to your 
