Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
CSW IndustrialsCSW +0.65%94 Degree of Operating Leverage is 0.58 as of Jun. 2026. GuruFocus rates CSW with a GF Score™ of 94/100 and a GF Value™ of $354.31 (Fairly Valued). The stock has 6 warning signs investors should review. Among 2,978 Industrial Products companies, CSW Industrials ranks better than 55.94% on this metric.
Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue.
CSW Industrials's Degree of Operating Leverage for the quarter that ended in Jun. 2026 was 0.58. The higher Degree of Operating Leverage, the higher operating risk the company will take.
The industry rank for CSW Industrials's Degree of Operating Leverage or its related term are showing as below:
CSW's Degree of Operating Leverage is ranked better than 55.94% of 2978
companies
in the Industrial Products industry
Industry Median: 1.04
vs CSW: 0.58
CSW Industrials (NYSE:CSW) 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.
CSW Industrials Degree of Operating Leverage Related Terms
CSW Industrials Degree of Operating Leverage Historical Data
* Premium members only.
The historical data trend for CSW Industrials'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.
CSW Industrials Degree of Operating Leverage Chart
CSW vs FELE, SYM, XE: Degree of Operating Leverage Comparison
For the Specialty Industrial Machinery subindustry, CSW Industrials'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.
CSW Industrials Degree of Operating Leverage vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, CSW Industrials's Degree of Operating Leverage distribution charts can be found below:
* The bar in red indicates where CSW Industrials'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 0.58 mean?
CSW Industrials (CSW) has a Degree of Operating Leverage of 0.58 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 CSW Industrials and its competitors. According to the industry distribution chart, CSW Industrials ranks #1312 out of 2978 companies in the Industrial Products industry, placing it in the top 44.1%.
Is CSW Industrials' Degree of Operating Leverage too high?
CSW Industrials' current Degree of Operating Leverage is 0.58. The Industrial Products industry median Degree of Operating Leverage is 1.04. CSW Industrials' value of 0.58 is 44.2% below this industry median. Based on the distribution chart, CSW Industrials ranks #1312 out of 2978 companies in the Industrial Products industry, which is above the industry midpoint. Overall, CSW Industrials has a GF Score™ of 94/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does CSW Industrials' Degree of Operating Leverage compare to FELE and SYM?
According to the Industrial Products industry distribution chart, CSW Industrials ranks #1312 out of 2978 companies for Degree of Operating Leverage. This puts CSW Industrials in the upper half of its industry. The industry median Degree of Operating Leverage is 1.04. CSW Industrials' value of 0.58 is 44.2% below 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 an Industrial Products company?
The median Degree of Operating Leverage among Industrial Products companies is 1.04, based on 2,978 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. CSW Industrials's current Degree of Operating Leverage of 0.58 is 44.2% below 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 CSW Industrials and its competitors. For the Industrial Products industry, the median Degree of Operating Leverage is 1.04 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. CSW Industrials's current Degree of Operating Leverage is 0.58. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is CSW Industrials stock overvalued right now?
Based on GuruFocus' analysis, CSW Industrials (CSW) is currently considered Fairly Valued. The stock's GF Value™ is $354.31, compared to a current price of $345.15 — trading 2.6% below its estimated fair value. The current Degree of Operating Leverage is 0.58 and 44.2% below the Industrial Products industry median of 1.04. CSW Industrials' overall GF Score™ is 94/100 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 CSW Industrials (CSW), the current Degree of Operating Leverage is 0.58 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 CSW Industrials (CSW) Overvalued in 2026?
Based on GuruFocus' analysis, CSW Industrials stock appears to be undervalued.
The current stock price of $345.15 is trading 2.6% below its estimated GF Value™ of $354.31.
GuruFocus considers CSW Industrials to be Fairly Valued.
Key valuation signals for CSW:
Degree of Operating Leverage: 0.58
GF Value™: $354.31 vs. price of $345.15 (2.6% below fair value)
Industry Position: 44.2% below the Industrial Products median (#1312 of 2978)
No single metric tells the full story. See the CSW stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
CSW Industrials Inc is a diversified industrial growth company with well-established, scalable platforms & domain expertise across three segments: Contractor Solutions, Engineered Building Solutions, & Specialized Reliability Solutions. The company's Contractor Solutions segment involves manufacturing efficient & performance-enhancing products for residential & commercial HVAC/R & plumbing applications, which are designed for professional end-use customers. The majority of the company's revenue is generated from the Contractor Solutions segment in the U.S. markets. products include mechanical products for heating, ventilation, air conditioning, & refrigeration, plumbing products, grilles, registers, & diffusers, building safety solutions, & high-performance specialty lubricants & sealants.
94GF Score
Get the complete analysis for CSW
Degree of Operating Leverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
CSW has been successfully added to your 
