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Mader GroupASX:MAD -1.78%89 Degree of Operating Leverage is 0.89 as of Jun. 2026. GuruFocus rates ASX:MAD with a GF Score™ of 89/100 and a GF Value™ of A$9.07 (Significantly Undervalued). Among 1,038 Business Services companies, Mader Group ranks better than 53.47% on this metric.
Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue.
Mader Group's Degree of Operating Leverage for the quarter that ended in Jun. 2026 was 0.89. The higher Degree of Operating Leverage, the higher operating risk the company will take.
The industry rank for Mader Group's Degree of Operating Leverage or its related term are showing as below:
ASX:MAD's Degree of Operating Leverage is ranked better than 53.47% of 1038
companies
in the Business Services industry
Industry Median: 1.12
vs ASX:MAD: 0.89
Mader Group (ASX:MAD) 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.
Mader Group Degree of Operating Leverage Related Terms
Mader Group Degree of Operating Leverage Historical Data
* Premium members only.
The historical data trend for Mader 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.
ASX:MAD vs CTAS, CPRT, GPN: Degree of Operating Leverage Comparison
For the Specialty Business Services subindustry, Mader 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.
Mader Group Degree of Operating Leverage vs Business Services Industry
For the Business Services industry and Industrials sector, Mader Group's Degree of Operating Leverage distribution charts can be found below:
* The bar in red indicates where Mader Group'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 0.89 mean?
Mader Group (ASX:MAD) has a Degree of Operating Leverage of 0.89 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 Mader Group and its competitors. According to the industry distribution chart, Mader Group ranks #483 out of 1038 companies in the Business Services industry, placing it in the top 46.5%.
Is Mader Group's Degree of Operating Leverage too high?
Mader Group's current Degree of Operating Leverage is 0.89. The Business Services industry median Degree of Operating Leverage is 1.12. Mader Group's value of 0.89 is 20.5% below this industry median. Based on the distribution chart, Mader Group ranks #483 out of 1038 companies in the Business Services industry, which is above the industry midpoint. Overall, Mader Group has a GF Score™ of 89/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Mader Group's Degree of Operating Leverage compare to CTAS and CPRT?
According to the Business Services industry distribution chart, Mader Group ranks #483 out of 1038 companies for Degree of Operating Leverage. This puts Mader Group in the upper half of its industry. The industry median Degree of Operating Leverage is 1.12. Mader Group's value of 0.89 is 20.5% 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 Business Services company?
The median Degree of Operating Leverage among Business Services companies is 1.12, based on 1,038 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. Mader Group's current Degree of Operating Leverage of 0.89 is 20.5% 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 Mader Group and its competitors. For the Business Services 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. Mader Group's current Degree of Operating Leverage is 0.89. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Mader Group stock overvalued right now?
Based on GuruFocus' analysis, Mader Group (ASX:MAD) is currently considered Significantly Undervalued. The stock's GF Value™ is A$9.07, compared to a current price of A$6.06 — trading 33.2% below its estimated fair value. The current Degree of Operating Leverage is 0.89 and 20.5% below the Business Services industry median of 1.12. Mader Group's overall GF Score™ is 89/100. 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 Mader Group (ASX:MAD), the current Degree of Operating Leverage is 0.89 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 Mader Group (ASX:MAD) Overvalued in 2026?
Based on GuruFocus' analysis, Mader Group stock appears to be undervalued.
The current stock price of A$6.06 is trading 33.2% below its estimated GF Value™ of A$9.07.
GuruFocus considers Mader Group to be Significantly Undervalued.
Key valuation signals for ASX:MAD:
Degree of Operating Leverage: 0.89
GF Value™: A$9.07 vs. price of A$6.06 (33.2% below fair value)
Industry Position: 20.5% below the Business Services median (#483 of 1038)
No single metric tells the full story. See the ASX:MAD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Mader Group Ltd is a maintenance services company that supplies tradespeople to resource industry customers. It provides specialized contract labour for the maintenance of heavy mobile equipment in the resources industry. The services provided include maintenance labour, field support, shutdown teams for overhauls, maintenance workshops, training of maintenance teams, and a range of other ancillary services. Its geographical segments include Australia, North America, Rest of World and Corporate, of which the majority of the revenue comes from Australia.
89GF Score
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