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Cosmos HealthCOSM -0.58%29 Degree of Operating Leverage is 1.37 as of Jun. 2026. GuruFocus rates COSM with a GF Score™ of 29/100 and a GF Value™ of $0.31 (Possible Value Trap). The stock has 6 warning signs investors should review. Among 117 Medical Distribution companies, Cosmos Health ranks worse than 53.85% on this metric.
Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue.
Cosmos Health's Degree of Operating Leverage for the quarter that ended in Jun. 2026 was 1.37. The higher Degree of Operating Leverage, the higher operating risk the company will take.
The industry rank for Cosmos Health's Degree of Operating Leverage or its related term are showing as below:
COSM's Degree of Operating Leverage is ranked worse than 53.85% of 117
companies
in the Medical Distribution industry
Industry Median: 1.1
vs COSM: 1.37
Cosmos Health (NAS:COSM) 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.
Cosmos Health Degree of Operating Leverage Related Terms
Cosmos Health Degree of Operating Leverage Historical Data
* Premium members only.
The historical data trend for Cosmos Health'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.
COSM vs HKPD, MEDS, SNYR: Degree of Operating Leverage Comparison
For the Medical Distribution subindustry, Cosmos Health'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.
Cosmos Health Degree of Operating Leverage vs Medical Distribution Industry
For the Medical Distribution industry and Healthcare sector, Cosmos Health's Degree of Operating Leverage distribution charts can be found below:
* The bar in red indicates where Cosmos Health'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 1.37 mean?
Cosmos Health (COSM) has a Degree of Operating Leverage of 1.37 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 Cosmos Health and its competitors. According to the industry distribution chart, Cosmos Health ranks #63 out of 117 companies in the Medical Distribution industry, placing it in the top 53.8%.
Is Cosmos Health's Degree of Operating Leverage too high?
Cosmos Health's current Degree of Operating Leverage is 1.37. The Medical Distribution industry median Degree of Operating Leverage is 1.10. Cosmos Health's value of 1.37 is 24.5% above this industry median. Based on the distribution chart, Cosmos Health ranks #63 out of 117 companies in the Medical Distribution industry, which is below the industry midpoint. Overall, Cosmos Health has a GF Score™ of 29/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Cosmos Health's Degree of Operating Leverage compare to HKPD and MEDS?
According to the Medical Distribution industry distribution chart, Cosmos Health ranks #63 out of 117 companies for Degree of Operating Leverage. This places Cosmos Health in the lower half of its industry. The industry median Degree of Operating Leverage is 1.10. Cosmos Health's value of 1.37 is 24.5% 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 Medical Distribution company?
The median Degree of Operating Leverage among Medical Distribution companies is 1.10, based on 117 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. Cosmos Health's current Degree of Operating Leverage of 1.37 is 24.5% 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 Cosmos Health and its competitors. For the Medical Distribution 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. Cosmos Health's current Degree of Operating Leverage is 1.37. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cosmos Health stock overvalued right now?
Based on GuruFocus' analysis, Cosmos Health (COSM) is currently considered Possible Value Trap. The stock's GF Value™ is $0.31, compared to a current price of $0.20 — trading 34.2% below its estimated fair value. The current Degree of Operating Leverage is 1.37 and 24.5% above the Medical Distribution industry median of 1.10. Cosmos Health's overall GF Score™ is 29/100 with 6 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 Cosmos Health (COSM), the current Degree of Operating Leverage is 1.37 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 Cosmos Health (COSM) Overvalued in 2026?
Based on GuruFocus' analysis, Cosmos Health stock appears to be undervalued.
The current stock price of $0.20 is trading 34.2% below its estimated GF Value™ of $0.31.
GuruFocus considers Cosmos Health to be Possible Value Trap.
Key valuation signals for COSM:
Degree of Operating Leverage: 1.37
GF Value™: $0.31 vs. price of $0.20 (34.2% below fair value)
Industry Position: 24.5% above the Medical Distribution median (#63 of 117)
No single metric tells the full story. See the COSM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Cosmos Health Inc is a diversified, vertically integrated healthcare group, owner of proprietary pharmaceutical and nutraceutical brands, generics, manufacturer and distributor of healthcare products, engaged in research & development of medicines and repurposing drugs as well as operator of a telehealth platform. The company has developed its own proprietary branded nutraceutical products, named 'Sky Premium Life' and 'Mediterranation'. Its product portfolio includes generics and over-the-counter pharmaceutical products, medicines, as well as nutraceuticals and biocides. The company's Reportable segments are Wholesale, Pharma manufacturing, and Nutraceutical and pharmaceuticals, with the majority of revenue generated from the Wholesale segment.
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