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.
ElsightASX:ELS -6.37%72 Degree of Operating Leverage is -0.75 as of Jun. 2026. GuruFocus rates ASX:ELS with a GF Score™ of 72/100 and a GF Value™ of A$9.34 (Possible Value Trap). The stock has 4 warning signs investors should review. Among 2,431 Hardware companies, Elsight ranks better than 68.45% on this metric.
Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue.
Elsight's Degree of Operating Leverage for the quarter that ended in Jun. 2026 was -0.75. The higher Degree of Operating Leverage, the higher operating risk the company will take.
The industry rank for Elsight's Degree of Operating Leverage or its related term are showing as below:
ASX:ELS's Degree of Operating Leverage is ranked better than 68.45% of 2431
companies
in the Hardware industry
Industry Median: 1.12
vs ASX:ELS: -0.75
Elsight (ASX:ELS) 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.
Elsight Degree of Operating Leverage Related Terms
Elsight Degree of Operating Leverage Historical Data
* Premium members only.
The historical data trend for Elsight'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:ELS vs CSCO, MSI, LITE: Degree of Operating Leverage Comparison
For the Communication Equipment subindustry, Elsight'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.
Elsight Degree of Operating Leverage vs Hardware Industry
For the Hardware industry and Technology sector, Elsight's Degree of Operating Leverage distribution charts can be found below:
* The bar in red indicates where Elsight'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 -0.75 mean?
Elsight (ASX:ELS) has a Degree of Operating Leverage of -0.75 as of Jun. 2026. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for Elsight and its competitors. According to the industry distribution chart, Elsight ranks #767 out of 2431 companies in the Hardware industry, placing it in the top 31.6%.
Is Elsight's Degree of Operating Leverage too high?
Elsight's current Degree of Operating Leverage is -0.75. Based on the distribution chart, Elsight ranks #767 out of 2431 companies in the Hardware industry, which is above the industry midpoint. Overall, Elsight has a GF Score™ of 72/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Elsight's Degree of Operating Leverage compare to CSCO and MSI?
According to the Hardware industry distribution chart, Elsight ranks #767 out of 2431 companies for Degree of Operating Leverage. This puts Elsight in the upper half of its industry. The industry median Degree of Operating Leverage is 1.12. 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 Hardware company?
The median Degree of Operating Leverage among Hardware companies is 1.12, based on 2,431 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 Elsight and its competitors. For the Hardware industry, the median Degree of Operating Leverage is 1.12 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Elsight's current Degree of Operating Leverage is -0.75. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Elsight stock overvalued right now?
Based on GuruFocus' analysis, Elsight (ASX:ELS) is currently considered Possible Value Trap. The stock's GF Value™ is A$9.34, compared to a current price of A$4.56 — trading 51.2% below its estimated fair value. The current Degree of Operating Leverage is -0.75. Elsight's overall GF Score™ is 72/100 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 Elsight (ASX:ELS), the current Degree of Operating Leverage is -0.75 as of Jun. 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.
Is Elsight (ASX:ELS) Overvalued in 2026?
Based on GuruFocus' analysis, Elsight stock appears to be undervalued.
The current stock price of A$4.56 is trading 51.2% below its estimated GF Value™ of A$9.34.
GuruFocus considers Elsight to be Possible Value Trap.
Key valuation signals for ASX:ELS:
Degree of Operating Leverage: -0.75
GF Value™: A$9.34 vs. price of A$4.56 (51.2% below fair value)
No single metric tells the full story. See the ASX:ELS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Elsight Ltd development and commercialisation of the Halo platform for mission-critical applications across defence, homeland security (HLS), and uncrewed systems markets. Providing proprietary software and hardware technology solutions enabling reliable connection confidence for unmanned aerial and ground systems, including drones, robots, and other uncrewed systems. Products include Halo for the Military, Halo for HLS/Public Safety, Halo for Commercial Use, AllSight Management Platform, and HeatSight. Serves Agriculture, Construction and Surveying, Firefighting, First Responders, Mining, Military & Defense, Oil & Gas, Electric & Water Utilities, and Deliveries. Operates in Europe with maximum revenue, Israel, United States of America, and Other foreign countries.
72GF Score
Get the complete analysis for ASX:ELS
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
ASX:ELS has been successfully added to your 
