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Smurfit WestRockCHIX:SWRL 64 Degree of Operating Leverage is 8.51 as of Jun. 2026. GuruFocus rates CHIX:SWRL with a GF Score™ of 64/100 and a GF Value™ of £33.42 (Fairly Valued). The stock has 10 warning signs investors should review. Among 391 Packaging & Containers companies, Smurfit WestRock ranks worse than 82.1% on this metric.
Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue.
Smurfit WestRock's Degree of Operating Leverage for the quarter that ended in Jun. 2026 was 8.51. The higher Degree of Operating Leverage, the higher operating risk the company will take.
The industry rank for Smurfit WestRock's Degree of Operating Leverage or its related term are showing as below:
CHIX:SWRl's Degree of Operating Leverage is ranked worse than 82.1% of 391
companies
in the Packaging & Containers industry
Industry Median: 1.09
vs CHIX:SWRl: 8.51
Smurfit WestRock (CHIX:SWRl) 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.
Smurfit WestRock Degree of Operating Leverage Related Terms
Smurfit WestRock Degree of Operating Leverage Historical Data
* Premium members only.
The historical data trend for Smurfit WestRock'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.
Smurfit WestRock Degree of Operating Leverage Chart
CHIX:SWRL vs PKG, IP, AMCR: Degree of Operating Leverage Comparison
For the Packaging & Containers subindustry, Smurfit WestRock'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.
Smurfit WestRock Degree of Operating Leverage vs Packaging & Containers Industry
For the Packaging & Containers industry and Consumer Cyclical sector, Smurfit WestRock's Degree of Operating Leverage distribution charts can be found below:
* The bar in red indicates where Smurfit WestRock'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 8.51 mean?
Smurfit WestRock (CHIX:SWRL) has a Degree of Operating Leverage of 8.51 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 Smurfit WestRock and its competitors. According to the industry distribution chart, Smurfit WestRock ranks #321 out of 391 companies in the Packaging & Containers industry, placing it in the top 82.1%.
Is Smurfit WestRock's Degree of Operating Leverage too high?
Smurfit WestRock's current Degree of Operating Leverage is 8.51. The Packaging & Containers industry median Degree of Operating Leverage is 1.09. Smurfit WestRock's value of 8.51 is 680.7% above this industry median. Based on the distribution chart, Smurfit WestRock ranks #321 out of 391 companies in the Packaging & Containers industry, which is in the bottom quartile relative to peers. Overall, Smurfit WestRock has a GF Score™ of 64/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Smurfit WestRock's Degree of Operating Leverage compare to PKG and IP?
According to the Packaging & Containers industry distribution chart, Smurfit WestRock ranks #321 out of 391 companies for Degree of Operating Leverage. This places Smurfit WestRock in the lower half of its industry. The industry median Degree of Operating Leverage is 1.09. Smurfit WestRock's value of 8.51 is 680.7% 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 Packaging & Containers company?
The median Degree of Operating Leverage among Packaging & Containers companies is 1.09, based on 391 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. Smurfit WestRock's current Degree of Operating Leverage of 8.51 is 680.7% 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 Smurfit WestRock and its competitors. For the Packaging & Containers industry, the median Degree of Operating Leverage is 1.09 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Smurfit WestRock's current Degree of Operating Leverage is 8.51. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Smurfit WestRock stock overvalued right now?
Based on GuruFocus' analysis, Smurfit WestRock (CHIX:SWRL) is currently considered Fairly Valued. The stock's GF Value™ is £33.42, compared to a current price of £33.79 — trading 1.1% above its estimated fair value. The current Degree of Operating Leverage is 8.51 and 680.7% above the Packaging & Containers industry median of 1.09. Smurfit WestRock's overall GF Score™ is 64/100 with 10 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 Smurfit WestRock (CHIX:SWRL), the current Degree of Operating Leverage is 8.51 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 Smurfit WestRock (CHIX:SWRL) Overvalued in 2026?
Based on GuruFocus' analysis, Smurfit WestRock stock appears to be overvalued.
The current stock price of £33.79 is trading 1.1% above its estimated GF Value™ of £33.42.
GuruFocus considers Smurfit WestRock to be Fairly Valued.
Key valuation signals for CHIX:SWRL:
Degree of Operating Leverage: 8.51
GF Value™: £33.42 vs. price of £33.79 (1.1% above fair value)
Industry Position: 680.7% above the Packaging & Containers median (#321 of 391)
No single metric tells the full story. See the CHIX:SWRL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Smurfit WestRock PLC manufactures corrugated packaging and consumer packaging, such as folding cartons and paperboard. operates a vertically integrated system supplying wood and recovered fiber to produce various grades of board, which are then converted into packaging products. Its main packaging categories include corrugated containers and consumer packaging, with additional products such as solidboard, kraft paper, graphic board, paper sacks, and bag-in-box packaging. The company's geographical segments include North America (including the U.S., Canada and Mexico), Europe, the Middle East and Africa and Asia-Pacific, and Latin America. The majority of the company's revenue is derived from product sales in the North American region.
64GF Score
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