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SodexoCHIX:SWP 75 Degree of Operating Leverage is 12.20 as of Feb. 2026. GuruFocus rates CHIX:SWP with a GF Score™ of 75/100 and a GF Value™ of €76.50 (Modestly Undervalued). The stock has 9 warning signs investors should review. Among 1,048 Business Services companies, Sodexo ranks worse than 89.03% on this metric.
Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue.
Sodexo's Degree of Operating Leverage for the quarter that ended in Feb. 2026 was 12.20. The higher Degree of Operating Leverage, the higher operating risk the company will take.
The industry rank for Sodexo's Degree of Operating Leverage or its related term are showing as below:
CHIX:SWp's Degree of Operating Leverage is ranked worse than 89.03% of 1048
companies
in the Business Services industry
Industry Median: 1.1
vs CHIX:SWp: 12.20
Sodexo (CHIX:SWp) 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.
Sodexo Degree of Operating Leverage Related Terms
Sodexo Degree of Operating Leverage Historical Data
* Premium members only.
The historical data trend for Sodexo'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:SWP vs CTAS, CPRT, GPN: Degree of Operating Leverage Comparison
For the Specialty Business Services subindustry, Sodexo'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.
Sodexo Degree of Operating Leverage vs Business Services Industry
For the Business Services industry and Industrials sector, Sodexo's Degree of Operating Leverage distribution charts can be found below:
* The bar in red indicates where Sodexo'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 12.20 mean?
Sodexo (CHIX:SWP) has a Degree of Operating Leverage of 12.20 as of Feb. 2026. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for Sodexo and its competitors. According to the industry distribution chart, Sodexo ranks #933 out of 1048 companies in the Business Services industry, placing it in the top 89%.
Is Sodexo's Degree of Operating Leverage too high?
Sodexo's current Degree of Operating Leverage is 12.20. The Business Services industry median Degree of Operating Leverage is 1.10. Sodexo's value of 12.20 is 1009.1% above this industry median. Based on the distribution chart, Sodexo ranks #933 out of 1048 companies in the Business Services industry, which is in the bottom quartile relative to peers. Overall, Sodexo has a GF Score™ of 75/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Sodexo's Degree of Operating Leverage compare to CTAS and CPRT?
According to the Business Services industry distribution chart, Sodexo ranks #933 out of 1048 companies for Degree of Operating Leverage. This places Sodexo in the lower half of its industry. The industry median Degree of Operating Leverage is 1.10. Sodexo's value of 12.20 is 1009.1% 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 Business Services company?
The median Degree of Operating Leverage among Business Services companies is 1.10, based on 1,048 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. Sodexo's current Degree of Operating Leverage of 12.20 is 1009.1% 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 Sodexo and its competitors. For the Business Services industry, the median Degree of Operating Leverage is 1.10 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sodexo's current Degree of Operating Leverage is 12.20. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sodexo stock overvalued right now?
Based on GuruFocus' analysis, Sodexo (CHIX:SWP) is currently considered Modestly Undervalued. The stock's GF Value™ is €76.50, compared to a current price of €57.75 — trading 24.5% below its estimated fair value. The current Degree of Operating Leverage is 12.20 and 1009.1% above the Business Services industry median of 1.10. Sodexo's overall GF Score™ is 75/100 with 9 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 Sodexo (CHIX:SWP), the current Degree of Operating Leverage is 12.20 as of Feb. 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 Sodexo (CHIX:SWP) Overvalued in 2026?
Based on GuruFocus' analysis, Sodexo stock appears to be undervalued.
The current stock price of €57.75 is trading 24.5% below its estimated GF Value™ of €76.50.
GuruFocus considers Sodexo to be Modestly Undervalued.
Key valuation signals for CHIX:SWP:
Degree of Operating Leverage: 12.20
GF Value™: €76.50 vs. price of €57.75 (24.5% below fair value)
Industry Position: 1009.1% above the Business Services median (#933 of 1048)
No single metric tells the full story. See the CHIX:SWP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sodexo is one of the largest foodservice companies globally, operating in 45 countries with annual sales exceeding EUR 24 billion. Sodexo's model rests on operating on-premises catering facilities, rather than centralized industrial kitchens. Foodservice remains the largest business segment, contributing 66% of revenue in 2024. Sodexo has its own group purchasing organization, Entegra, with annual purchasing of over EUR 37 billion. The company spun off its benefits and services business, Pluxee, and now focuses on foodservice and its second business, facilities management.
75GF Score
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