Inghams Group (ASX:ING) Degree of Operating Leverage : -14.83 (As of Jun. 2026)

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ASX:ING Inghams Group Ltd ASX:ING
73 GF Score
Price A$2.09
GF Value A$3.20
Valuation Significantly Undervalued
! 7 Warning Signs
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What is Inghams Group Degree of Operating Leverage?

Inghams Group ASX:ING +1.95% 73 Degree of Operating Leverage is -14.83 as of Jun. 2026. GuruFocus rates ASX:ING with a GF Score™ of 73/100 and a GF Value™ of A$3.20 (Significantly Undervalued). The stock has 7 warning signs investors should review. Among 1,915 Consumer Packaged Goods companies, Inghams Group ranks better than 89.92% on this metric.

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Inghams Group's Degree of Operating Leverage for the quarter that ended in Jun. 2026 was -14.83. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Inghams Group's Degree of Operating Leverage or its related term are showing as below:

ASX:ING's Degree of Operating Leverage is ranked better than
89.92% of 1915 companies
in the Consumer Packaged Goods industry
Industry Median: 1.04 vs ASX:ING: -14.83

Inghams Group  (ASX:ING) 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.


Inghams Group Degree of Operating Leverage Related Terms


Inghams Group Degree of Operating Leverage Historical Data

* Premium members only.

The historical data trend for Inghams Group'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.

Inghams Group Degree of Operating Leverage Chart

Inghams Group Annual Data
Trend Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24 Jun25 Jun26
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only -37.41 17.56 1.99 0.72 -14.83

Inghams Group Semi-Annual Data
Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25 Jun26
Degree of Operating Leverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.99 -17.74 0.72 8.39 -14.83

ASX:ING vs ADM, BG, TSN: Degree of Operating Leverage Comparison

For the Farm Products subindustry, Inghams Group'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.


Inghams Group Degree of Operating Leverage vs Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Inghams Group's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Inghams Group's Degree of Operating Leverage falls into.


ASX:ING
73GF Score
Inghams Group Ltd ASX:ING
Degree of Operating Leverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Inghams Group Degree of Operating Leverage Calculation

Inghams Group's Degree of Operating Leverage for the quarter that ended in Jun. 2026 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 110.2 (Jun. 2026) / 170.3 (Jun. 2025) - 1 )/( 3227.4 (Jun. 2026) / 3152.4 (Jun. 2025) - 1 )
=-0.3529/0.0238
=-14.83***

* 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 -14.83 mean?
Inghams Group (ASX:ING) has a Degree of Operating Leverage of -14.83 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 Inghams Group and its competitors. According to the industry distribution chart, Inghams Group ranks #193 out of 1915 companies in the Consumer Packaged Goods industry, placing it in the top 10.1%.
Is Inghams Group's Degree of Operating Leverage too high?
Inghams Group's current Degree of Operating Leverage is -14.83. Based on the distribution chart, Inghams Group ranks #193 out of 1915 companies in the Consumer Packaged Goods industry, which is in the top quartile — a strong position relative to peers. Overall, Inghams Group has a GF Score™ of 73/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Inghams Group's Degree of Operating Leverage compare to ADM and BG?
According to the Consumer Packaged Goods industry distribution chart, Inghams Group ranks #193 out of 1915 companies for Degree of Operating Leverage. This places Inghams Group in the top 10% of its industry — outperforming the majority of peers. The industry median Degree of Operating Leverage is 1.04. 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 Consumer Packaged Goods company?
The median Degree of Operating Leverage among Consumer Packaged Goods companies is 1.04, based on 1,915 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 Inghams Group and its competitors. For the Consumer Packaged Goods industry, the median Degree of Operating Leverage is 1.04 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Inghams Group's current Degree of Operating Leverage is -14.83. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Inghams Group stock overvalued right now?
Based on GuruFocus' analysis, Inghams Group (ASX:ING) is currently considered Significantly Undervalued. The stock's GF Value™ is A$3.20, compared to a current price of A$2.09 — trading 34.7% below its estimated fair value. The current Degree of Operating Leverage is -14.83. Inghams Group's overall GF Score™ is 73/100 with 7 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 Inghams Group (ASX:ING), the current Degree of Operating Leverage is -14.83 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 Inghams Group (ASX:ING) Overvalued in 2026?

Based on GuruFocus' analysis, Inghams Group stock appears to be undervalued. The current stock price of A$2.09 is trading 34.7% below its estimated GF Value™ of A$3.20. GuruFocus considers Inghams Group to be Significantly Undervalued.

Key valuation signals for ASX:ING:

  • Degree of Operating Leverage: -14.83
  • GF Value™: A$3.20 vs. price of A$2.09 (34.7% below fair value)
  • GF Score™: 73/100 with 7 warning signs

No single metric tells the full story. See the ASX:ING stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Inghams Group Business Description

Other Exchanges IH1:Germany
Address 1 Julius Avenue, Level 4, North Ryde, Sydney, NSW, AUS, 2113
Inghams is the largest vertically integrated poultry producer in Australia and New Zealand. The firm enjoys a number-one position in Australia with approximately 40% market share and a number-two position in New Zealand with around 35% share. Inghams supplies poultry products, notably to major Australian supermarkets Woolworths and Coles and quick-service restaurants McDonald's and KFC. Sales are heavily skewed toward poultry, which includes the production and sale of chicken and turkey products.
73GF Score

Get the complete analysis for ASX:ING

Degree of Operating Leverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

A$2.09
Price
A$3.20
GF Value