Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
QinetiQ GroupCHIX:QQL -0.08%84 Degree of Operating Leverage is 664.49 as of Mar. 2026. GuruFocus rates CHIX:QQL with a GF Score™ of 84/100 and a GF Value™ of £4.69 (Fairly Valued). The stock has 2 warning signs investors should review. Among 336 Aerospace & Defense companies, QinetiQ Group ranks worse than 100% on this metric.
Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue.
QinetiQ Group's Degree of Operating Leverage for the quarter that ended in Mar. 2026 was 664.49. The higher Degree of Operating Leverage, the higher operating risk the company will take.
The industry rank for QinetiQ Group's Degree of Operating Leverage or its related term are showing as below:
CHIX:QQl's Degree of Operating Leverage is ranked worse than 100% of 336
companies
in the Aerospace & Defense industry
Industry Median: 1.23
vs CHIX:QQl: 664.49
QinetiQ Group (CHIX:QQl) 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.
QinetiQ Group Degree of Operating Leverage Related Terms
QinetiQ Group Degree of Operating Leverage Historical Data
* Premium members only.
The historical data trend for QinetiQ Group'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.
CHIX:QQL vs SPCX, GE, RTX: Degree of Operating Leverage Comparison
For the Aerospace & Defense subindustry, QinetiQ Group'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.
QinetiQ Group Degree of Operating Leverage vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, QinetiQ Group's Degree of Operating Leverage distribution charts can be found below:
* The bar in red indicates where QinetiQ Group'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 664.49 mean?
QinetiQ Group (CHIX:QQL) has a Degree of Operating Leverage of 664.49 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 QinetiQ Group and its competitors. According to the industry distribution chart, QinetiQ Group ranks #336 out of 336 companies in the Aerospace & Defense industry.
Is QinetiQ Group's Degree of Operating Leverage too high?
QinetiQ Group's current Degree of Operating Leverage is 664.49. The Aerospace & Defense industry median Degree of Operating Leverage is 1.23. QinetiQ Group's value of 664.49 is 53923.6% above this industry median. Based on the distribution chart, QinetiQ Group ranks #336 out of 336 companies in the Aerospace & Defense industry, which is in the bottom quartile relative to peers. Overall, QinetiQ Group has a GF Score™ of 84/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does QinetiQ Group's Degree of Operating Leverage compare to SPCX and GE?
According to the Aerospace & Defense industry distribution chart, QinetiQ Group ranks #336 out of 336 companies for Degree of Operating Leverage. This places QinetiQ Group in the lower half of its industry. The industry median Degree of Operating Leverage is 1.23. QinetiQ Group's value of 664.49 is 53923.6% 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 Aerospace & Defense company?
The median Degree of Operating Leverage among Aerospace & Defense companies is 1.23, based on 336 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. QinetiQ Group's current Degree of Operating Leverage of 664.49 is 53923.6% 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 QinetiQ Group and its competitors. For the Aerospace & Defense industry, the median Degree of Operating Leverage is 1.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. QinetiQ Group's current Degree of Operating Leverage is 664.49. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is QinetiQ Group stock overvalued right now?
Based on GuruFocus' analysis, QinetiQ Group (CHIX:QQL) is currently considered Fairly Valued. The stock's GF Value™ is £4.69, compared to a current price of £4.71 — trading 0.3% above its estimated fair value. The current Degree of Operating Leverage is 664.49 and 53923.6% above the Aerospace & Defense industry median of 1.23. QinetiQ Group's overall GF Score™ is 84/100 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 QinetiQ Group (CHIX:QQL), the current Degree of Operating Leverage is 664.49 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 QinetiQ Group (CHIX:QQL) Overvalued in 2026?
Based on GuruFocus' analysis, QinetiQ Group stock appears to be overvalued.
The current stock price of £4.71 is trading 0.3% above its estimated GF Value™ of £4.69.
GuruFocus considers QinetiQ Group to be Fairly Valued.
Key valuation signals for CHIX:QQL:
Degree of Operating Leverage: 664.49
GF Value™: £4.69 vs. price of £4.71 (0.3% above fair value)
Industry Position: 53923.6% above the Aerospace & Defense median (#336 of 336)
No single metric tells the full story. See the CHIX:QQL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
QinetiQ Group PLC is a company operating in the aerospace, defense, and security sectors. Its operating segments are EMEA Services, and Global Solutions. It generates majority of revenue from EMES Services. EMEA Services provides technical assurance, test and evaluation and training services, underpinned by long-term contracts. EMEA Services comprises business units which are not considered reportable segments as defined UK Defence, UK Intelligence and the Australia sector. Global Solutions combines all other business units not aggregated within EMEA Services. It has presence in United Kingdom (UK), United States of America (US), Australia, Home countries, Europe, and Rest of world of which majority of revenue comes from Home countries.
84GF Score
Get the complete analysis for CHIX:QQL
Degree of Operating Leverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
CHIX:QQL has been successfully added to your 
