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Cannae HoldingsCNNE -0.06%58 Degree of Operating Leverage is 12.68 as of Jun. 2026. GuruFocus rates CNNE with a GF Score™ of 58/100 and a GF Value™ of $22.08 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 359 Restaurants companies, Cannae Holdings ranks worse than 85.24% on this metric.
Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue.
Cannae Holdings's Degree of Operating Leverage for the quarter that ended in Jun. 2026 was 12.68. The higher Degree of Operating Leverage, the higher operating risk the company will take.
The industry rank for Cannae Holdings's Degree of Operating Leverage or its related term are showing as below:
CNNE's Degree of Operating Leverage is ranked worse than 85.24% of 359
companies
in the Restaurants industry
Industry Median: 1.09
vs CNNE: 12.68
Cannae Holdings (NYSE:CNNE) 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.
Cannae Holdings Degree of Operating Leverage Related Terms
Cannae Holdings Degree of Operating Leverage Historical Data
* Premium members only.
The historical data trend for Cannae Holdings'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.
Cannae Holdings Degree of Operating Leverage Chart
CNNE vs FWRG, KRUS, PZZA: Degree of Operating Leverage Comparison
For the Restaurants subindustry, Cannae Holdings'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.
Cannae Holdings Degree of Operating Leverage vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Cannae Holdings's Degree of Operating Leverage distribution charts can be found below:
* The bar in red indicates where Cannae Holdings'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 12.68 mean?
Cannae Holdings (CNNE) has a Degree of Operating Leverage of 12.68 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 Cannae Holdings and its competitors. According to the industry distribution chart, Cannae Holdings ranks #306 out of 359 companies in the Restaurants industry, placing it in the top 85.2%.
Is Cannae Holdings' Degree of Operating Leverage too high?
Cannae Holdings' current Degree of Operating Leverage is 12.68. The Restaurants industry median Degree of Operating Leverage is 1.09. Cannae Holdings' value of 12.68 is 1063.3% above this industry median. Based on the distribution chart, Cannae Holdings ranks #306 out of 359 companies in the Restaurants industry, which is in the bottom quartile relative to peers. Overall, Cannae Holdings has a GF Score™ of 58/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Cannae Holdings' Degree of Operating Leverage compare to FWRG and KRUS?
According to the Restaurants industry distribution chart, Cannae Holdings ranks #306 out of 359 companies for Degree of Operating Leverage. This places Cannae Holdings in the lower half of its industry. The industry median Degree of Operating Leverage is 1.09. Cannae Holdings' value of 12.68 is 1063.3% 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 Restaurants company?
The median Degree of Operating Leverage among Restaurants companies is 1.09, based on 359 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. Cannae Holdings's current Degree of Operating Leverage of 12.68 is 1063.3% 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 Cannae Holdings and its competitors. For the Restaurants 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. Cannae Holdings's current Degree of Operating Leverage is 12.68. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cannae Holdings stock overvalued right now?
Based on GuruFocus' analysis, Cannae Holdings (CNNE) is currently considered Modestly Undervalued. The stock's GF Value™ is $22.08, compared to a current price of $15.83 — trading 28.3% below its estimated fair value. The current Degree of Operating Leverage is 12.68 and 1063.3% above the Restaurants industry median of 1.09. Cannae Holdings' overall GF Score™ is 58/100 with 5 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 Cannae Holdings (CNNE), the current Degree of Operating Leverage is 12.68 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 Cannae Holdings (CNNE) Overvalued in 2026?
Based on GuruFocus' analysis, Cannae Holdings stock appears to be undervalued.
The current stock price of $15.83 is trading 28.3% below its estimated GF Value™ of $22.08.
GuruFocus considers Cannae Holdings to be Modestly Undervalued.
Key valuation signals for CNNE:
Degree of Operating Leverage: 12.68
GF Value™: $22.08 vs. price of $15.83 (28.3% below fair value)
Industry Position: 1063.3% above the Restaurants median (#306 of 359)
No single metric tells the full story. See the CNNE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Cannae Holdings Inc is an investment holding company that acquires and actively manages equity interests in operating businesses across various industries. The Company focuses on long-term ownership and seeks to create value by supporting the growth and operations of its portfolio companies through management expertise and strategic oversight. The Company operates through four reportable segments: Restaurant Group, which includes the operations of O'Charleys and 99 Restaurants; Alight, which represents its ownership interest in a technology-enabled human capital and employee benefits solutions provider; Black Knight Football Club (BKFC), which holds interests in professional football clubs; and JANA, which represents its investment in an investment management firm.
58GF 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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