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THGCHIX:THGL -0.18%34 Degree of Operating Leverage is 56.25 as of Dec. 2025. GuruFocus rates CHIX:THGL with a GF Score™ of 34/100 and a GF Value™ of £0.36 (Fairly Valued). The stock has 4 warning signs investors should review. Among 1,100 Retail - Cyclical companies, THG ranks worse than 94.27% on this metric.
Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue.
THG's Degree of Operating Leverage for the quarter that ended in Dec. 2025 was 56.25. The higher Degree of Operating Leverage, the higher operating risk the company will take.
The industry rank for THG's Degree of Operating Leverage or its related term are showing as below:
CHIX:THGl's Degree of Operating Leverage is ranked worse than 94.27% of 1100
companies
in the Retail - Cyclical industry
Industry Median: 1.185
vs CHIX:THGl: 56.25
THG (CHIX:THGl) 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.
THG Degree of Operating Leverage Related Terms
THG Degree of Operating Leverage Historical Data
* Premium members only.
The historical data trend for THG'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:THGL vs AMZN, BABA, PDD: Degree of Operating Leverage Comparison
For the Internet Retail subindustry, THG'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.
THG Degree of Operating Leverage vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, THG's Degree of Operating Leverage distribution charts can be found below:
* The bar in red indicates where THG'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 56.25 mean?
THG (CHIX:THGL) has a Degree of Operating Leverage of 56.25 as of Dec. 2025. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for THG and its competitors. According to the industry distribution chart, THG ranks #1037 out of 1100 companies in the Retail - Cyclical industry, placing it in the top 94.3%.
Is THG's Degree of Operating Leverage too high?
THG's current Degree of Operating Leverage is 56.25. The Retail - Cyclical industry median Degree of Operating Leverage is 1.19. THG's value of 56.25 is 4646.8% above this industry median. Based on the distribution chart, THG ranks #1037 out of 1100 companies in the Retail - Cyclical industry, which is in the bottom quartile relative to peers. Overall, THG has a GF Score™ of 34/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does THG's Degree of Operating Leverage compare to AMZN and BABA?
According to the Retail - Cyclical industry distribution chart, THG ranks #1037 out of 1100 companies for Degree of Operating Leverage. This places THG in the lower half of its industry. The industry median Degree of Operating Leverage is 1.19. THG's value of 56.25 is 4646.8% 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 a Retail - Cyclical company?
The median Degree of Operating Leverage among Retail - Cyclical companies is 1.19, based on 1,100 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. THG's current Degree of Operating Leverage of 56.25 is 4646.8% 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 THG and its competitors. For the Retail - Cyclical industry, the median Degree of Operating Leverage is 1.19 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. THG's current Degree of Operating Leverage is 56.25. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is THG stock overvalued right now?
Based on GuruFocus' analysis, THG (CHIX:THGL) is currently considered Fairly Valued. The stock's GF Value™ is £0.36, compared to a current price of £0.33 — trading 7.2% below its estimated fair value. The current Degree of Operating Leverage is 56.25 and 4646.8% above the Retail - Cyclical industry median of 1.19. THG's overall GF Score™ is 34/100 with 4 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 THG (CHIX:THGL), the current Degree of Operating Leverage is 56.25 as of Dec. 2025. 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 THG (CHIX:THGL) Overvalued in 2026?
Based on GuruFocus' analysis, THG stock appears to be undervalued.
The current stock price of £0.33 is trading 7.2% below its estimated GF Value™ of £0.36.
GuruFocus considers THG to be Fairly Valued.
Key valuation signals for CHIX:THGL:
Degree of Operating Leverage: 56.25
GF Value™: £0.36 vs. price of £0.33 (7.2% below fair value)
Industry Position: 4646.8% above the Retail - Cyclical median (#1037 of 1100)
No single metric tells the full story. See the CHIX:THGL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
THG PLC is a UK-based retailer and brand owner headquartered in Manchester, operating as a digital-first, vertically integrated consumer group across two core businesses. The Group follows a UK D2C model and is expanding into high-growth international markets and selective physical retail. Its operations comprise two segments: THG Beauty, the segment generating maximum revenue, is a digital-first brand owner, retailer and manufacturer in prestige beauty, with own brands in skincare, haircare and cosmetics and platforms such as Lookfantastic, Dermstore and Cult Beauty, and THG Nutrition, which includes the online sports nutrition brand Myprotein along with Myvegan, Myvitamins, MP Activewear and MPRO, supported by production facilities. The Group generates maximum revenue from the UK.
34GF 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.
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