CANRF (Canare Electric Co) Degree of Operating Leverage : 1.10 (As of Jun. 2026)

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CANRF Canare Electric Co Ltd CANRF
79 GF Score
Price $9.96
GF Value $9.69
! 2 Warning Signs
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What is Canare Electric Co Degree of Operating Leverage?

Canare Electric Co CANRF 79 Degree of Operating Leverage is 1.10 as of Jun. 2026. GuruFocus rates CANRF with a GF Score™ of 79/100 and a GF Value™ of $9.69. The stock has 2 warning signs investors should review. Among 2,980 Industrial Products companies, Canare Electric Co ranks worse than 50.87% on this metric.

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Canare Electric Co's Degree of Operating Leverage for the quarter that ended in Jun. 2026 was 1.10. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Canare Electric Co's Degree of Operating Leverage or its related term are showing as below:

CANRF's Degree of Operating Leverage is ranked worse than
50.87% of 2980 companies
in the Industrial Products industry
Industry Median: 1.05 vs CANRF: 1.10

Canare Electric Co  (OTCPK:CANRF) 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.


Canare Electric Co Degree of Operating Leverage Related Terms


Canare Electric Co Degree of Operating Leverage Historical Data

* Premium members only.

The historical data trend for Canare Electric Co'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.

Canare Electric Co Degree of Operating Leverage Chart

Canare Electric Co Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.45 1.59 2.54 3.36 1.30

Canare Electric Co Quarterly Data
Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26 Jun26
Degree of Operating Leverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 7.61 0.12 1.30 0.00 1.10

CANRF vs VRT, BE: Degree of Operating Leverage Comparison

For the Electrical Equipment & Parts subindustry, Canare Electric Co'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.


Canare Electric Co Degree of Operating Leverage vs Industrial Products Industry

For the Industrial Products industry and Industrials sector, Canare Electric Co's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Canare Electric Co's Degree of Operating Leverage falls into.


CANRF
79GF Score
Canare Electric Co Ltd CANRF
Degree of Operating Leverage is just one metric. See GF Score™, valuation, warning signs, and more.
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Canare Electric Co Degree of Operating Leverage Calculation

Canare Electric Co's Degree of Operating Leverage for the quarter that ended in Jun. 2026 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 10.824 (Jun. 2026) / 10.945 (Jun. 2025) - 1 )/( 85.46 (Jun. 2026) / 86.709 (Jun. 2025) - 1 )
=-0.0111/-0.0144
=0.77***

* 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 1.10 mean?
Canare Electric Co (CANRF) has a Degree of Operating Leverage of 1.10 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 Canare Electric Co and its competitors. According to the industry distribution chart, Canare Electric Co ranks #1516 out of 2980 companies in the Industrial Products industry, placing it in the top 50.9%.
Is Canare Electric Co's Degree of Operating Leverage too high?
Canare Electric Co's current Degree of Operating Leverage is 1.10. The Industrial Products industry median Degree of Operating Leverage is 1.05. Canare Electric Co's value of 1.10 is 4.8% above this industry median. Based on the distribution chart, Canare Electric Co ranks #1516 out of 2980 companies in the Industrial Products industry, which is below the industry midpoint. Overall, Canare Electric Co has a GF Score™ of 79/100, reflecting its overall financial health beyond just this single metric.
How does Canare Electric Co's Degree of Operating Leverage compare to VRT and BE?
According to the Industrial Products industry distribution chart, Canare Electric Co ranks #1516 out of 2980 companies for Degree of Operating Leverage. This places Canare Electric Co in the lower half of its industry. The industry median Degree of Operating Leverage is 1.05. Canare Electric Co's value of 1.10 is 4.8% 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 an Industrial Products company?
The median Degree of Operating Leverage among Industrial Products companies is 1.05, based on 2,980 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. Canare Electric Co's current Degree of Operating Leverage of 1.10 is 4.8% 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 Canare Electric Co and its competitors. For the Industrial Products industry, the median Degree of Operating Leverage is 1.05 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Canare Electric Co's current Degree of Operating Leverage is 1.10. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Canare Electric Co stock overvalued right now?
Canare Electric Co (CANRF) has a current Degree of Operating Leverage of 1.10. The stock's GF Value™ is $9.69, compared to a current price of $9.96 — trading 2.8% above its estimated fair value. The current Degree of Operating Leverage is 1.10 and 4.8% above the Industrial Products industry median of 1.05. Canare Electric Co's overall GF Score™ is 79/100 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 Canare Electric Co (CANRF), the current Degree of Operating Leverage is 1.10 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 Canare Electric Co (CANRF) Overvalued in 2026?

Based on GuruFocus' analysis, Canare Electric Co stock appears to be overvalued. The current stock price of $9.96 is trading 2.8% above its estimated GF Value™ of $9.69.

Key valuation signals for CANRF:

  • Degree of Operating Leverage: 1.10
  • GF Value™: $9.69 vs. price of $9.96 (2.8% above fair value)
  • GF Score™: 79/100 with 2 warning signs
  • Industry Position: 4.8% above the Industrial Products median (#1516 of 2980)

No single metric tells the full story. See the CANRF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Canare Electric Co Business Description

Other Exchanges 5819:Japan
Address 1201-10 Okumawari, Fujieda-cho, Aichi Prefecture, Nisshin, JPN, 105-0011
Canare Electric Co Ltd develops, manufactures, and sells audio and video cables, connectors, patchbays, assemblies, converters and related products, and fiber-optic products. Its products include video jacks, crimp plugs, coaxial cable strippers, receptacles, and adapters. It serves television broadcasting, and professional audio and video industries.
79GF Score

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Degree of Operating Leverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$9.96
Price
$9.69
GF Value