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Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue.
China Tobacco International (HK) Co's Degree of Operating Leverage for the quarter that ended in Jun. 2026 was -0.23. The higher Degree of Operating Leverage, the higher operating risk the company will take.
China Tobacco International (HK) Co (OTCPK:CTOBF) 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.
China Tobacco International (HK) Co Degree of Operating Leverage Related Terms
China Tobacco International (HK) Co Degree of Operating Leverage Historical Data
* 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.
China Tobacco International (HK) Co Degree of Operating Leverage Chart
CTOBF vs PM, MO, TPB: Degree of Operating Leverage Comparison
For the Tobacco subindustry, China Tobacco International (HK) Co'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.
China Tobacco International (HK) Co Degree of Operating Leverage vs Tobacco Products Industry
For the Tobacco Products industry and Consumer Defensive sector, China Tobacco International (HK) Co's Degree of Operating Leverage distribution charts can be found below:
* The bar in red indicates where China Tobacco International (HK) Co'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 -0.23 mean?
China Tobacco International (HK) Co (CTOBF) has a Degree of Operating Leverage of -0.23 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 China Tobacco International (HK) Co and its competitors. According to the industry distribution chart, China Tobacco International (HK) Co ranks #18 out of 45 companies in the Tobacco Products industry, placing it in the top 40%.
Is China Tobacco International (HK) Co's Degree of Operating Leverage too high?
China Tobacco International (HK) Co's current Degree of Operating Leverage is -0.23. Based on the distribution chart, China Tobacco International (HK) Co ranks #18 out of 45 companies in the Tobacco Products industry, which is above the industry midpoint. Overall, China Tobacco International (HK) Co has a GF Score™ of 88/100, reflecting its overall financial health beyond just this single metric.
How does China Tobacco International (HK) Co's Degree of Operating Leverage compare to PM and MO?
According to the Tobacco Products industry distribution chart, China Tobacco International (HK) Co ranks #18 out of 45 companies for Degree of Operating Leverage. This puts China Tobacco International (HK) Co in the upper half of its industry. The industry median Degree of Operating Leverage is 0.22. 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 Tobacco Products company?
The median Degree of Operating Leverage among Tobacco Products companies is 0.22, based on 45 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. 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 China Tobacco International (HK) Co and its competitors. For the Tobacco Products industry, the median Degree of Operating Leverage is 0.22 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Tobacco International (HK) Co's current Degree of Operating Leverage is -0.23. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Tobacco International (HK) Co stock overvalued right now?
China Tobacco International (HK) Co (CTOBF) has a current Degree of Operating Leverage of -0.23. The stock's GF Value™ is $1.93, compared to a current price of $2.05 — trading 6.2% above its estimated fair value. The current Degree of Operating Leverage is -0.23. China Tobacco International (HK) Co's overall GF Score™ is 88/100 with 2 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 China Tobacco International (HK) Co (CTOBF), the current Degree of Operating Leverage is -0.23 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 China Tobacco International (HK) Co (CTOBF) Overvalued in 2026?
Based on GuruFocus' analysis, China Tobacco International (HK) Co stock appears to be overvalued.
The current stock price of $2.05 is trading 6.2% above its estimated GF Value™ of $1.93.
Key valuation signals for CTOBF:
Degree of Operating Leverage: -0.23
GF Value™: $1.93 vs. price of $2.05 (6.2% above fair value)
No single metric tells the full story. See the CTOBF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Tobacco International (HK) Co Ltd is engaged in the tobacco business. It operates through various segments namely the Tobacco Leaf Products Export Business, the Tobacco Leaf Product Import Business, the Cigarettes Export Business, the New Tobacco Product Export Business, and the Brazil Operation Business. The company's geographical segments are China (excluding the SARs), Indonesia, Korea, Hong Kong, Philippines, Vietnam, Brazil, Belgium, Poland, Paraguay, Egypt, and others, of which it derives maximum revenue from the PRC. It earns maximum revenue from the Tobacco Leaf Product Import Business.
88GF Score
Get the complete analysis for CTOBF
Degree of Operating Leverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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