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AustalASX:ASB -2.82%66 Degree of Operating Leverage is 2.99 as of Dec. 2025. GuruFocus rates ASX:ASB with a GF Score™ of 66/100 and a GF Value™ of A$3.28 (Modestly Overvalued). The stock has 4 warning signs investors should review. Among 334 Aerospace & Defense companies, Austal ranks worse than 67.66% on this metric.
Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue.
Austal's Degree of Operating Leverage for the quarter that ended in Dec. 2025 was 2.99. The higher Degree of Operating Leverage, the higher operating risk the company will take.
The industry rank for Austal's Degree of Operating Leverage or its related term are showing as below:
ASX:ASB's Degree of Operating Leverage is ranked worse than 67.66% of 334
companies
in the Aerospace & Defense industry
Industry Median: 1.27
vs ASX:ASB: 2.99
Austal (ASX:ASB) 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.
Austal Degree of Operating Leverage Related Terms
Austal Degree of Operating Leverage Historical Data
* Premium members only.
The historical data trend for Austal's Degree of Operating 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.
ASX:ASB vs SPCX, GE, RTX: Degree of Operating Leverage Comparison
For the Aerospace & Defense subindustry, Austal'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.
Austal Degree of Operating Leverage vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Austal's Degree of Operating Leverage distribution charts can be found below:
* The bar in red indicates where Austal'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 2.99 mean?
Austal (ASX:ASB) has a Degree of Operating Leverage of 2.99 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 Austal and its competitors. According to the industry distribution chart, Austal ranks #226 out of 334 companies in the Aerospace & Defense industry, placing it in the top 67.7%.
Is Austal's Degree of Operating Leverage too high?
Austal's current Degree of Operating Leverage is 2.99. The Aerospace & Defense industry median Degree of Operating Leverage is 1.27. Austal's value of 2.99 is 135.4% above this industry median. Based on the distribution chart, Austal ranks #226 out of 334 companies in the Aerospace & Defense industry, which is below the industry midpoint. Overall, Austal has a GF Score™ of 66/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Austal's Degree of Operating Leverage compare to SPCX and GE?
According to the Aerospace & Defense industry distribution chart, Austal ranks #226 out of 334 companies for Degree of Operating Leverage. This places Austal in the lower half of its industry. The industry median Degree of Operating Leverage is 1.27. Austal's value of 2.99 is 135.4% 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 Operating Leverage for an Aerospace & Defense company?
The median Degree of Operating Leverage among Aerospace & Defense companies is 1.27, based on 334 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. Austal's current Degree of Operating Leverage of 2.99 is 135.4% 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 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 Austal and its competitors. For the Aerospace & Defense industry, the median Degree of Operating Leverage is 1.27 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Austal's current Degree of Operating Leverage is 2.99. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Austal stock overvalued right now?
Based on GuruFocus' analysis, Austal (ASX:ASB) is currently considered Modestly Overvalued. The stock's GF Value™ is A$3.28, compared to a current price of A$4.14 — trading 26.2% above its estimated fair value. The current Degree of Operating Leverage is 2.99 and 135.4% above the Aerospace & Defense industry median of 1.27. Austal's overall GF Score™ is 66/100 with 4 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 Austal (ASX:ASB), the current Degree of Operating Leverage is 2.99 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 Austal (ASX:ASB) Overvalued in 2026?
Based on GuruFocus' analysis, Austal stock appears to be overvalued.
The current stock price of A$4.14 is trading 26.2% above its estimated GF Value™ of A$3.28.
GuruFocus considers Austal to be Modestly Overvalued.
Key valuation signals for ASX:ASB:
Degree of Operating Leverage: 2.99
GF Value™: A$3.28 vs. price of A$4.14 (26.2% above fair value)
Industry Position: 135.4% above the Aerospace & Defense median (#226 of 334)
No single metric tells the full story. See the ASX:ASB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Austal Ltd is engaged in designing, constructing, and supporting revolutionary defense and commercial vessels. The company designs, constructs, and supports passenger ferries, vehicle passenger ferries, and offshore and windfarm vessels; naval vessels; naval surface warfare combatants; and patrol boats for government law enforcement and border protection agencies. Its reportable segments are USA Shipbuilding; USA Support; Australasia Shipbuilding and Australasia Support. Maximum revenue is generated from its USA Shipbuilding segment which manufactures high performance defence vessels for U.S. Navy and Coast Guard. Geographically, the company derives a majority of its revenue from the United States of America and the rest from Australia, Europe, Asia, South America, and the Middle East.
66GF Score
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