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Spark New ZealandASX:SPK +1.22%68 Degree of Operating Leverage is 127.36 as of Jun. 2026. GuruFocus rates ASX:SPK with a GF Score™ of 68/100 and a GF Value™ of A$2.17 (Modestly Undervalued). The stock has 7 warning signs investors should review. Among 361 Telecommunication Services companies, Spark New Zealand ranks worse than 97.78% on this metric.
Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue.
Spark New Zealand's Degree of Operating Leverage for the quarter that ended in Jun. 2026 was 127.36. The higher Degree of Operating Leverage, the higher operating risk the company will take.
The industry rank for Spark New Zealand's Degree of Operating Leverage or its related term are showing as below:
ASX:SPK's Degree of Operating Leverage is ranked worse than 97.78% of 361
companies
in the Telecommunication Services industry
Industry Median: 1.24
vs ASX:SPK: 127.36
Spark New Zealand (ASX:SPK) 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.
Spark New Zealand Degree of Operating Leverage Related Terms
Spark New Zealand Degree of Operating Leverage Historical Data
* Premium members only.
The historical data trend for Spark New Zealand'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.
Spark New Zealand Degree of Operating Leverage Chart
ASX:SPK vs VZ, TMUS, T: Degree of Operating Leverage Comparison
For the Telecom Services subindustry, Spark New Zealand'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.
Spark New Zealand Degree of Operating Leverage vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Spark New Zealand's Degree of Operating Leverage distribution charts can be found below:
* The bar in red indicates where Spark New Zealand'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 127.36 mean?
Spark New Zealand (ASX:SPK) has a Degree of Operating Leverage of 127.36 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 Spark New Zealand and its competitors. According to the industry distribution chart, Spark New Zealand ranks #353 out of 361 companies in the Telecommunication Services industry, placing it in the top 97.8%.
Is Spark New Zealand's Degree of Operating Leverage too high?
Spark New Zealand's current Degree of Operating Leverage is 127.36. The Telecommunication Services industry median Degree of Operating Leverage is 1.24. Spark New Zealand's value of 127.36 is 10171% above this industry median. Based on the distribution chart, Spark New Zealand ranks #353 out of 361 companies in the Telecommunication Services industry, which is in the bottom quartile relative to peers. Overall, Spark New Zealand has a GF Score™ of 68/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Spark New Zealand's Degree of Operating Leverage compare to VZ and TMUS?
According to the Telecommunication Services industry distribution chart, Spark New Zealand ranks #353 out of 361 companies for Degree of Operating Leverage. This places Spark New Zealand in the lower half of its industry. The industry median Degree of Operating Leverage is 1.24. Spark New Zealand's value of 127.36 is 10171% 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 Telecommunication Services company?
The median Degree of Operating Leverage among Telecommunication Services companies is 1.24, based on 361 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. Spark New Zealand's current Degree of Operating Leverage of 127.36 is 10171% 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 Spark New Zealand and its competitors. For the Telecommunication Services industry, the median Degree of Operating Leverage is 1.24 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Spark New Zealand's current Degree of Operating Leverage is 127.36. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Spark New Zealand stock overvalued right now?
Based on GuruFocus' analysis, Spark New Zealand (ASX:SPK) is currently considered Modestly Undervalued. The stock's GF Value™ is A$2.17, compared to a current price of A$1.67 — trading 23.3% below its estimated fair value. The current Degree of Operating Leverage is 127.36 and 10171% above the Telecommunication Services industry median of 1.24. Spark New Zealand's overall GF Score™ is 68/100 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 Spark New Zealand (ASX:SPK), the current Degree of Operating Leverage is 127.36 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 Spark New Zealand (ASX:SPK) Overvalued in 2026?
Based on GuruFocus' analysis, Spark New Zealand stock appears to be undervalued.
The current stock price of A$1.67 is trading 23.3% below its estimated GF Value™ of A$2.17.
GuruFocus considers Spark New Zealand to be Modestly Undervalued.
Key valuation signals for ASX:SPK:
Degree of Operating Leverage: 127.36
GF Value™: A$2.17 vs. price of A$1.67 (23.3% below fair value)
Industry Position: 10171% above the Telecommunication Services median (#353 of 361)
No single metric tells the full story. See the ASX:SPK stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Spark is one of only three integrated telecommunications companies in New Zealand. It is the leading mobile network operator with low- to mid-40% subscriber and revenue share, and the dominant provider of fixed-line broadband services with a mid-30% subscriber share. It has a big position in the New Zealand corporate and wholesale telecommunications services provision space. Spark supplements its core telecommunications operations and related infrastructure with IT products and services across cloud, managed data and networks, procurement, data centers, and Internet of Things. Its operations are all based in New Zealand, except for its 41% interest in Southern Cross Submarine Cables, which has zero book value and to which Spark has no funding obligations.
68GF Score
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