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Castile ResourcesASX:CST -1.33% Degree of Operating Leverage is 0.80 as of Dec. 2025. The stock has 1 warning sign investors should review. Among 749 Metals & Mining companies, Castile Resources ranks better than 56.34% on this metric.
Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue.
Castile Resources's Degree of Operating Leverage for the quarter that ended in Dec. 2025 was 0.80. The higher Degree of Operating Leverage, the higher operating risk the company will take.
The industry rank for Castile Resources's Degree of Operating Leverage or its related term are showing as below:
ASX:CST's Degree of Operating Leverage is ranked better than 56.34% of 749
companies
in the Metals & Mining industry
Industry Median: 1.24
vs ASX:CST: 0.80
Castile Resources (ASX:CST) 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.
Castile Resources Degree of Operating Leverage Related Terms
Castile Resources Degree of Operating Leverage Historical Data
* Premium members only.
The historical data trend for Castile Resources'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.
Castile Resources Degree of Operating Leverage Chart
Castile Resources Degree of Operating Leverage Competitor Comparison
For the Other Industrial Metals & Mining subindustry, Castile Resources'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.
Castile Resources Degree of Operating Leverage vs Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Castile Resources's Degree of Operating Leverage distribution charts can be found below:
* The bar in red indicates where Castile Resources'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 0.80 mean?
Castile Resources (ASX:CST) has a Degree of Operating Leverage of 0.80 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 Castile Resources and its competitors. According to the industry distribution chart, Castile Resources ranks #327 out of 749 companies in the Metals & Mining industry, placing it in the top 43.7%.
Is Castile Resources' Degree of Operating Leverage too high?
Castile Resources' current Degree of Operating Leverage is 0.80. The Metals & Mining industry median Degree of Operating Leverage is 1.24. Castile Resources' value of 0.80 is 35.5% below this industry median. Based on the distribution chart, Castile Resources ranks #327 out of 749 companies in the Metals & Mining industry, which is above the industry midpoint.
How does Castile Resources' Degree of Operating Leverage compare to competitors?
According to the Metals & Mining industry distribution chart, Castile Resources ranks #327 out of 749 companies for Degree of Operating Leverage. This puts Castile Resources in the upper half of its industry. The industry median Degree of Operating Leverage is 1.24. Castile Resources' value of 0.80 is 35.5% 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 Operating Leverage for a Metals & Mining company?
The median Degree of Operating Leverage among Metals & Mining companies is 1.24, based on 749 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. Castile Resources's current Degree of Operating Leverage of 0.80 is 35.5% 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 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 Castile Resources and its competitors. For the Metals & Mining industry, the median Degree of Operating Leverage is 1.24 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Castile Resources's current Degree of Operating Leverage is 0.80. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Castile Resources stock overvalued right now?
Castile Resources (ASX:CST) has a current Degree of Operating Leverage of 0.80. The current Degree of Operating Leverage is 0.80 and 35.5% below the Metals & Mining industry median of 1.24. 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 Castile Resources (ASX:CST), the current Degree of Operating Leverage is 0.80 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.
Castile Resources Ltd is a mineral exploration and project development company operating in Australia. Its primary projects include the Rover Project and the Warumpi Project, located in the Northern Territory and Western Australia, respectively. The company focuses on exploring minerals such as gold, copper, cobalt, zinc, and silver. The company operates in one geographic segment, Australia, and is engaged in exploring and developing mineral assets. The majority of revenue is generated through the interest income received.
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