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Mission ProduceAVO +3.53%79 Degree of Operating Leverage is 10.40 as of Jul. 2026. GuruFocus rates AVO with a GF Score™ of 79/100 and a GF Value™ of $12.53 (Fairly Valued). The stock has 10 warning signs investors should review. Among 309 Retail - Defensive companies, Mission Produce ranks worse than 88.35% on this metric.
Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue.
Mission Produce's Degree of Operating Leverage for the quarter that ended in Jul. 2026 was 10.40. The higher Degree of Operating Leverage, the higher operating risk the company will take.
The industry rank for Mission Produce's Degree of Operating Leverage or its related term are showing as below:
AVO's Degree of Operating Leverage is ranked worse than 88.35% of 309
companies
in the Retail - Defensive industry
Industry Median: 0.7
vs AVO: 10.40
Mission Produce (NAS:AVO) 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.
Mission Produce Degree of Operating Leverage Related Terms
Mission Produce Degree of Operating Leverage Historical Data
* Premium members only.
The historical data trend for Mission Produce'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.
Mission Produce Degree of Operating Leverage Chart
AVO vs WILCF, HFFG, DIT: Degree of Operating Leverage Comparison
For the Food Distribution subindustry, Mission Produce'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.
Mission Produce Degree of Operating Leverage vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Mission Produce's Degree of Operating Leverage distribution charts can be found below:
* The bar in red indicates where Mission Produce'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 10.40 mean?
Mission Produce (AVO) has a Degree of Operating Leverage of 10.40 as of Jul. 2026. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for Mission Produce and its competitors. According to the industry distribution chart, Mission Produce ranks #273 out of 309 companies in the Retail - Defensive industry, placing it in the top 88.3%.
Is Mission Produce's Degree of Operating Leverage too high?
Mission Produce's current Degree of Operating Leverage is 10.40. The Retail - Defensive industry median Degree of Operating Leverage is 0.70. Mission Produce's value of 10.40 is 1385.7% above this industry median. Based on the distribution chart, Mission Produce ranks #273 out of 309 companies in the Retail - Defensive industry, which is in the bottom quartile relative to peers. Overall, Mission Produce has a GF Score™ of 79/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Mission Produce's Degree of Operating Leverage compare to WILCF and HFFG?
According to the Retail - Defensive industry distribution chart, Mission Produce ranks #273 out of 309 companies for Degree of Operating Leverage. This places Mission Produce in the lower half of its industry. The industry median Degree of Operating Leverage is 0.70. Mission Produce's value of 10.40 is 1385.7% 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 Retail - Defensive company?
The median Degree of Operating Leverage among Retail - Defensive companies is 0.70, based on 309 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. Mission Produce's current Degree of Operating Leverage of 10.40 is 1385.7% 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 Mission Produce and its competitors. For the Retail - Defensive industry, the median Degree of Operating Leverage is 0.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Mission Produce's current Degree of Operating Leverage is 10.40. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Mission Produce stock overvalued right now?
Based on GuruFocus' analysis, Mission Produce (AVO) is currently considered Fairly Valued. The stock's GF Value™ is $12.53, compared to a current price of $12.92 — trading 3.1% above its estimated fair value. The current Degree of Operating Leverage is 10.40 and 1385.7% above the Retail - Defensive industry median of 0.70. Mission Produce's overall GF Score™ is 79/100 with 10 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 Mission Produce (AVO), the current Degree of Operating Leverage is 10.40 as of Jul. 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 Mission Produce (AVO) Overvalued in 2026?
Based on GuruFocus' analysis, Mission Produce stock appears to be overvalued.
The current stock price of $12.92 is trading 3.1% above its estimated GF Value™ of $12.53.
GuruFocus considers Mission Produce to be Fairly Valued.
Key valuation signals for AVO:
Degree of Operating Leverage: 10.40
GF Value™: $12.53 vs. price of $12.92 (3.1% above fair value)
Industry Position: 1385.7% above the Retail - Defensive median (#273 of 309)
No single metric tells the full story. See the AVO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Mission Produce Inc produces, packs, and distributes mainly Hass avocados to retail, wholesale, and food service customers, offering pre-ripe and ripened fruit tailored to customer specifications through its network of ripening facilities. The Company operates through three segments: Marketing & Distribution, which sources and distributes fruit globally and generates the majority of revenue; International Farming, which owns and operates avocado orchards and supplies fruit mainly to Marketing & Distribution, with operations principally in Peru and Guatemala; and Blueberries, which farms blueberries sold under an exclusive marketing agreement. The Company's operations span Peru, the United States, Guatemala, Mexico, Europe, and Canada.
79GF Score
Get the complete analysis for AVO
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