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Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue.
Cogeco Communications's Degree of Operating Leverage for the quarter that ended in May. 2026 was 65.08. The higher Degree of Operating Leverage, the higher operating risk the company will take.
The industry rank for Cogeco Communications's Degree of Operating Leverage or its related term are showing as below:
CGEAF's Degree of Operating Leverage is ranked worse than 95.29% of 361
companies
in the Telecommunication Services industry
Industry Median: 1.15
vs CGEAF: 65.08
Cogeco Communications (OTCPK:CGEAF) 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.
Cogeco Communications Degree of Operating Leverage Related Terms
Cogeco Communications Degree of Operating Leverage Historical Data
* Premium members only.
The historical data trend for Cogeco Communications'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.
Cogeco Communications Degree of Operating Leverage Chart
CGEAF vs VZ, TMUS, T: Degree of Operating Leverage Comparison
For the Telecom Services subindustry, Cogeco Communications'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.
Cogeco Communications Degree of Operating Leverage vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Cogeco Communications's Degree of Operating Leverage distribution charts can be found below:
* The bar in red indicates where Cogeco Communications'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 65.08 mean?
Cogeco Communications (CGEAF) has a Degree of Operating Leverage of 65.08 as of May. 2026. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for Cogeco Communications and its competitors. According to the industry distribution chart, Cogeco Communications ranks #344 out of 361 companies in the Telecommunication Services industry, placing it in the top 95.3%.
Is Cogeco Communications' Degree of Operating Leverage too high?
Cogeco Communications' current Degree of Operating Leverage is 65.08. The Telecommunication Services industry median Degree of Operating Leverage is 1.15. Cogeco Communications' value of 65.08 is 5559.1% above this industry median. Based on the distribution chart, Cogeco Communications ranks #344 out of 361 companies in the Telecommunication Services industry, which is in the bottom quartile relative to peers. Overall, Cogeco Communications has a GF Score™ of 74/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Cogeco Communications' Degree of Operating Leverage compare to VZ and TMUS?
According to the Telecommunication Services industry distribution chart, Cogeco Communications ranks #344 out of 361 companies for Degree of Operating Leverage. This places Cogeco Communications in the lower half of its industry. The industry median Degree of Operating Leverage is 1.15. Cogeco Communications' value of 65.08 is 5559.1% 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 1.15, 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. Cogeco Communications's current Degree of Operating Leverage of 65.08 is 5559.1% 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 Cogeco Communications and its competitors. For the Telecommunication Services industry, the median Degree of Operating Leverage is 1.15 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cogeco Communications's current Degree of Operating Leverage is 65.08. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cogeco Communications stock overvalued right now?
Based on GuruFocus' analysis, Cogeco Communications (CGEAF) is currently considered Fairly Valued. The stock's GF Value™ is $44.27, compared to a current price of $42.44 — trading 4.1% below its estimated fair value. The current Degree of Operating Leverage is 65.08 and 5559.1% above the Telecommunication Services industry median of 1.15. Cogeco Communications' overall GF Score™ is 74/100 with 8 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 Cogeco Communications (CGEAF), the current Degree of Operating Leverage is 65.08 as of May. 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 Cogeco Communications (CGEAF) Overvalued in 2026?
Based on GuruFocus' analysis, Cogeco Communications stock appears to be undervalued.
The current stock price of $42.44 is trading 4.1% below its estimated GF Value™ of $44.27.
GuruFocus considers Cogeco Communications to be Fairly Valued.
Key valuation signals for CGEAF:
Degree of Operating Leverage: 65.08
GF Value™: $44.27 vs. price of $42.44 (4.1% below fair value)
Industry Position: 5559.1% above the Telecommunication Services median (#344 of 361)
No single metric tells the full story. See the CGEAF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Cogeco Communications is a telecom service provider in Canada and the US, specifically in rural and suburban geographies. It offers wireline services such as broadband internet, TV, and landline phone services. In Canada, the firm operates under its Cogeco Connexion and Oxio brands, reaching roughly 2.1 million homes and businesses throughout Ontario and Quebec. In the US, Cogeco operates under its Breezeline brand throughout the East Coast, Pennsylvania, and Ohio, reaching 1.8 million homes and businesses. Cogeco is expanding its offerings to include consumer wireless services, operating as a mobile virtual network operator.
74GF Score
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