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Grupul Industrial ElectrocontactBSE:ECT Degree of Operating Leverage is 0.22 as of Dec. 2025. The stock has 3 warning signs investors should review. Among 2,981 Industrial Products companies, Grupul Industrial Electrocontact ranks better than 59.61% on this metric.
Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue.
Grupul Industrial Electrocontact's Degree of Operating Leverage for the quarter that ended in Dec. 2025 was 0.22. The higher Degree of Operating Leverage, the higher operating risk the company will take.
BSE:ECT's Degree of Operating Leverage is ranked better than 59.61% of 2981
companies
in the Industrial Products industry
Industry Median: 0.97
vs BSE:ECT: 0.22
Grupul Industrial Electrocontact (BSE:ECT) 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.
Grupul Industrial Electrocontact Degree of Operating Leverage Related Terms
Grupul Industrial Electrocontact Degree of Operating Leverage Historical Data
* 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.
Grupul Industrial Electrocontact Degree of Operating Leverage Chart
BSE:ECT vs GEV, ETN, PH: Degree of Operating Leverage Comparison
For the Specialty Industrial Machinery subindustry, Grupul Industrial Electrocontact'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.
Grupul Industrial Electrocontact Degree of Operating Leverage vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Grupul Industrial Electrocontact's Degree of Operating Leverage distribution charts can be found below:
* The bar in red indicates where Grupul Industrial Electrocontact'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 0.22 mean?
Grupul Industrial Electrocontact (BSE:ECT) has a Degree of Operating Leverage of 0.22 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 Grupul Industrial Electrocontact and its competitors. According to the industry distribution chart, Grupul Industrial Electrocontact ranks #1204 out of 2981 companies in the Industrial Products industry, placing it in the top 40.4%.
Is Grupul Industrial Electrocontact's Degree of Operating Leverage too high?
Grupul Industrial Electrocontact's current Degree of Operating Leverage is 0.22. The Industrial Products industry median Degree of Operating Leverage is 0.97. Grupul Industrial Electrocontact's value of 0.22 is 77.3% below this industry median. Based on the distribution chart, Grupul Industrial Electrocontact ranks #1204 out of 2981 companies in the Industrial Products industry, which is above the industry midpoint.
How does Grupul Industrial Electrocontact's Degree of Operating Leverage compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Grupul Industrial Electrocontact ranks #1204 out of 2981 companies for Degree of Operating Leverage. This puts Grupul Industrial Electrocontact in the upper half of its industry. The industry median Degree of Operating Leverage is 0.97. Grupul Industrial Electrocontact's value of 0.22 is 77.3% 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 an Industrial Products company?
The median Degree of Operating Leverage among Industrial Products companies is 0.97, based on 2,981 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. Grupul Industrial Electrocontact's current Degree of Operating Leverage of 0.22 is 77.3% 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 Grupul Industrial Electrocontact and its competitors. For the Industrial Products industry, the median Degree of Operating Leverage is 0.97 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Grupul Industrial Electrocontact's current Degree of Operating Leverage is 0.22. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Grupul Industrial Electrocontact stock overvalued right now?
Based on GuruFocus' analysis, Grupul Industrial Electrocontact (BSE:ECT) is currently considered Modestly Undervalued. The stock's GF Value™ is lei0.08, compared to a current price of lei0.07 — trading 18.8% below its estimated fair value. The current Degree of Operating Leverage is 0.22 and 77.3% below the Industrial Products industry median of 0.97. 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 Grupul Industrial Electrocontact (BSE:ECT), the current Degree of Operating Leverage is 0.22 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.
Grupul Industrial Electrocontact SA provides solutions for equipment related to control and distribution for home and industrial use. Some of its products are electric explosion-proof equipment, proximity inductive & optoelectronic switches & junction.
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