Universal DisplayBSP:O2LE34 57 Degree of Operating Leverage is 2.85 as of Mar. 2026. GuruFocus rates BSP:O2LE34 with a GF Score™ of 57/100 and a GF Value™ of R$44.96 (Significantly Undervalued). The stock has 2 warning signs investors should review. Among 2,433 Hardware companies, Universal Display ranks worse than 69.54% on this metric.
Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue.
Universal Display's Degree of Operating Leverage for the quarter that ended in Mar. 2026 was 2.85. The higher Degree of Operating Leverage, the higher operating risk the company will take.
The industry rank for Universal Display's Degree of Operating Leverage or its related term are showing as below:
BSP:O2LE34's Degree of Operating Leverage is ranked worse than 69.54% of 2433
companies
in the Hardware industry
Industry Median: 0.86
vs BSP:O2LE34: 2.85
Universal Display (BSP:O2LE34) 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.
Universal Display Degree of Operating Leverage Related Terms
Universal Display Degree of Operating Leverage Historical Data
* Premium members only.
The historical data trend for Universal Display'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.
Universal Display Degree of Operating Leverage Chart
BSP:O2LE34 vs BELFB, OSIS, KN: Degree of Operating Leverage Comparison
For the Electronic Components subindustry, Universal Display'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.
Universal Display Degree of Operating Leverage vs Hardware Industry
For the Hardware industry and Technology sector, Universal Display's Degree of Operating Leverage distribution charts can be found below:
* The bar in red indicates where Universal Display'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 2.85 mean?
Universal Display (BSP:O2LE34) has a Degree of Operating Leverage of 2.85 as of Mar. 2026. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for Universal Display and its competitors. According to the industry distribution chart, Universal Display ranks #1692 out of 2433 companies in the Hardware industry, placing it in the top 69.5%.
Is Universal Display's Degree of Operating Leverage too high?
Universal Display's current Degree of Operating Leverage is 2.85. The Hardware industry median Degree of Operating Leverage is 0.86. Universal Display's value of 2.85 is 231.4% above this industry median. Based on the distribution chart, Universal Display ranks #1692 out of 2433 companies in the Hardware industry, which is below the industry midpoint. Overall, Universal Display has a GF Score™ of 57/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Universal Display's Degree of Operating Leverage compare to BELFB and OSIS?
According to the Hardware industry distribution chart, Universal Display ranks #1692 out of 2433 companies for Degree of Operating Leverage. This places Universal Display in the lower half of its industry. The industry median Degree of Operating Leverage is 0.86. Universal Display's value of 2.85 is 231.4% 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 Hardware company?
The median Degree of Operating Leverage among Hardware companies is 0.86, based on 2,433 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. Universal Display's current Degree of Operating Leverage of 2.85 is 231.4% 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 Universal Display and its competitors. For the Hardware industry, the median Degree of Operating Leverage is 0.86 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Universal Display's current Degree of Operating Leverage is 2.85. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Universal Display stock overvalued right now?
Based on GuruFocus' analysis, Universal Display (BSP:O2LE34) is currently considered Significantly Undervalued. The stock's GF Value™ is R$44.96, compared to a current price of R$25.07 — trading 44.2% below its estimated fair value. The current Degree of Operating Leverage is 2.85 and 231.4% above the Hardware industry median of 0.86. Universal Display's overall GF Score™ is 57/100 with 2 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 Universal Display (BSP:O2LE34), the current Degree of Operating Leverage is 2.85 as of Mar. 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 Universal Display (BSP:O2LE34) Overvalued in 2026?
Based on GuruFocus' analysis, Universal Display stock appears to be undervalued.
The current stock price of R$25.07 is trading 44.2% below its estimated GF Value™ of R$44.96.
GuruFocus considers Universal Display to be Significantly Undervalued.
Key valuation signals for BSP:O2LE34:
Degree of Operating Leverage: 2.85
GF Value™: R$44.96 vs. price of R$25.07 (44.2% below fair value)
Industry Position: 231.4% above the Hardware median (#1692 of 2433)
No single metric tells the full story. See the BSP:O2LE34 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Universal Display Corp researches, develops, and manufactures organic light-emitting diode, or OLED, technologies for use in displays for mobile phones, tablets, televisions, wearables, personal computers, automotive interiors, and the solid-state lighting market. OLED technologies are an alternative to light-emitting diode, or LED, technologies, in the solid-state lighting market, and liquid crystal displays in the flat-panel-display market. The Company has one reportable business segment being OLED technologies and materials. The large majority of the firm's revenue is generated in South Korea, with the rest coming from Japan, China, the United States, and other countries across the world.
57GF Score
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