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Regis HealthcareASX:REG -3.96%71 Degree of Operating Leverage is 3.39 as of Dec. 2025. GuruFocus rates ASX:REG with a GF Score™ of 71/100 and a GF Value™ of A$10.63 (Possible Value Trap). The stock has 4 warning signs investors should review. Among 647 Healthcare Providers & Services companies, Regis Healthcare ranks worse than 74.34% on this metric.
Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue.
Regis Healthcare's Degree of Operating Leverage for the quarter that ended in Dec. 2025 was 3.39. The higher Degree of Operating Leverage, the higher operating risk the company will take.
The industry rank for Regis Healthcare's Degree of Operating Leverage or its related term are showing as below:
ASX:REG's Degree of Operating Leverage is ranked worse than 74.34% of 647
companies
in the Healthcare Providers & Services industry
Industry Median: 0.89
vs ASX:REG: 3.39
Regis Healthcare (ASX:REG) 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.
Regis Healthcare Degree of Operating Leverage Related Terms
Regis Healthcare Degree of Operating Leverage Historical Data
* Premium members only.
The historical data trend for Regis Healthcare'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.
Regis Healthcare Degree of Operating Leverage Chart
ASX:REG vs HCA, THC, DVA: Degree of Operating Leverage Comparison
For the Medical Care Facilities subindustry, Regis Healthcare'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.
Regis Healthcare Degree of Operating Leverage vs Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, Regis Healthcare's Degree of Operating Leverage distribution charts can be found below:
* The bar in red indicates where Regis Healthcare'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 3.39 mean?
Regis Healthcare (ASX:REG) has a Degree of Operating Leverage of 3.39 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 Regis Healthcare and its competitors. According to the industry distribution chart, Regis Healthcare ranks #481 out of 647 companies in the Healthcare Providers & Services industry, placing it in the top 74.3%.
Is Regis Healthcare's Degree of Operating Leverage too high?
Regis Healthcare's current Degree of Operating Leverage is 3.39. The Healthcare Providers & Services industry median Degree of Operating Leverage is 0.89. Regis Healthcare's value of 3.39 is 280.9% above this industry median. Based on the distribution chart, Regis Healthcare ranks #481 out of 647 companies in the Healthcare Providers & Services industry, which is below the industry midpoint. Overall, Regis Healthcare has a GF Score™ of 71/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Regis Healthcare's Degree of Operating Leverage compare to HCA and THC?
According to the Healthcare Providers & Services industry distribution chart, Regis Healthcare ranks #481 out of 647 companies for Degree of Operating Leverage. This places Regis Healthcare in the lower half of its industry. The industry median Degree of Operating Leverage is 0.89. Regis Healthcare's value of 3.39 is 280.9% 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 a Healthcare Providers & Services company?
The median Degree of Operating Leverage among Healthcare Providers & Services companies is 0.89, based on 647 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. Regis Healthcare's current Degree of Operating Leverage of 3.39 is 280.9% 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 Regis Healthcare and its competitors. For the Healthcare Providers & Services industry, the median Degree of Operating Leverage is 0.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Regis Healthcare's current Degree of Operating Leverage is 3.39. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Regis Healthcare stock overvalued right now?
Based on GuruFocus' analysis, Regis Healthcare (ASX:REG) is currently considered Possible Value Trap. The stock's GF Value™ is A$10.63, compared to a current price of A$6.07 — trading 42.9% below its estimated fair value. The current Degree of Operating Leverage is 3.39 and 280.9% above the Healthcare Providers & Services industry median of 0.89. Regis Healthcare's overall GF Score™ is 71/100 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 Regis Healthcare (ASX:REG), the current Degree of Operating Leverage is 3.39 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.
Is Regis Healthcare (ASX:REG) Overvalued in 2026?
Based on GuruFocus' analysis, Regis Healthcare stock appears to be undervalued.
The current stock price of A$6.07 is trading 42.9% below its estimated GF Value™ of A$10.63.
GuruFocus considers Regis Healthcare to be Possible Value Trap.
Key valuation signals for ASX:REG:
Degree of Operating Leverage: 3.39
GF Value™: A$10.63 vs. price of A$6.07 (42.9% below fair value)
Industry Position: 280.9% above the Healthcare Providers & Services median (#481 of 647)
No single metric tells the full story. See the ASX:REG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Regis Healthcare is an Australian residential aged care operator providing accommodation and care for individuals who require high levels of support due to health or mobility issues. Residents are typically over 85 years old and are typified by dementia, palliative care, incontinence, and falls risk. Regis also operates smaller retirement village and home care businesses.
71GF Score
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