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High Peak RoyaltiesASX:HPR Degree of Operating Leverage is 123.98 as of Dec. 2025. The stock has 3 warning signs investors should review. Among 903 Oil & Gas companies, High Peak Royalties ranks worse than 97.79% on this metric.
Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue.
High Peak Royalties's Degree of Operating Leverage for the quarter that ended in Dec. 2025 was 123.98. The higher Degree of Operating Leverage, the higher operating risk the company will take.
The industry rank for High Peak Royalties's Degree of Operating Leverage or its related term are showing as below:
ASX:HPR's Degree of Operating Leverage is ranked worse than 97.79% of 903
companies
in the Oil & Gas industry
Industry Median: 0.85
vs ASX:HPR: 123.98
High Peak Royalties (ASX:HPR) 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.
High Peak Royalties Degree of Operating Leverage Related Terms
High Peak Royalties Degree of Operating Leverage Historical Data
* Premium members only.
The historical data trend for High Peak Royalties'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.
High Peak Royalties Degree of Operating Leverage Chart
ASX:HPR vs COP, EOG, OXY: Degree of Operating Leverage Comparison
For the Oil & Gas E&P subindustry, High Peak Royalties'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.
High Peak Royalties Degree of Operating Leverage vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, High Peak Royalties's Degree of Operating Leverage distribution charts can be found below:
* The bar in red indicates where High Peak Royalties'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 123.98 mean?
High Peak Royalties (ASX:HPR) has a Degree of Operating Leverage of 123.98 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 High Peak Royalties and its competitors. According to the industry distribution chart, High Peak Royalties ranks #883 out of 903 companies in the Oil & Gas industry, placing it in the top 97.8%.
Is High Peak Royalties' Degree of Operating Leverage too high?
High Peak Royalties' current Degree of Operating Leverage is 123.98. The Oil & Gas industry median Degree of Operating Leverage is 0.85. High Peak Royalties' value of 123.98 is 14485.9% above this industry median. Based on the distribution chart, High Peak Royalties ranks #883 out of 903 companies in the Oil & Gas industry, which is in the bottom quartile relative to peers.
How does High Peak Royalties' Degree of Operating Leverage compare to COP and EOG?
According to the Oil & Gas industry distribution chart, High Peak Royalties ranks #883 out of 903 companies for Degree of Operating Leverage. This places High Peak Royalties in the lower half of its industry. The industry median Degree of Operating Leverage is 0.85. High Peak Royalties' value of 123.98 is 14485.9% 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 Oil & Gas company?
The median Degree of Operating Leverage among Oil & Gas companies is 0.85, based on 903 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. High Peak Royalties's current Degree of Operating Leverage of 123.98 is 14485.9% 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 High Peak Royalties and its competitors. For the Oil & Gas industry, the median Degree of Operating Leverage is 0.85 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. High Peak Royalties's current Degree of Operating Leverage is 123.98. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is High Peak Royalties stock overvalued right now?
High Peak Royalties (ASX:HPR) has a current Degree of Operating Leverage of 123.98. The current Degree of Operating Leverage is 123.98 and 14485.9% above the Oil & Gas industry median of 0.85. 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 High Peak Royalties (ASX:HPR), the current Degree of Operating Leverage is 123.98 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.
High Peak Royalties Ltd is engaged in the acquisition of royalty and exploration interests in oil and gas assets, predominantly in Australia and the United States. Geographically, it operates in the USA and Australia and generates maximum revenue from the United States. The company has royalties over 20 oil and gas permits in Australia, over 2,000 wells in the USA, and is the operator of four geothermal permit interests.
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