CVOSF (Coveo Solutions) Degree of Operating Leverage : 3.01 (As of Jun. 2026)

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CVOSF Coveo Solutions Inc CVOSF
68 GF Score
Price $3.12
GF Value $5.76
Valuation Possible Value Trap
! 1 Warning Sign
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What is Coveo Solutions Degree of Operating Leverage?

Coveo Solutions CVOSF 68 Degree of Operating Leverage is 3.01 as of Jun. 2026. GuruFocus rates CVOSF with a GF Score™ of 68/100 and a GF Value™ of $5.76 (Possible Value Trap). The stock has 1 warning sign investors should review. Among 2,710 Software companies, Coveo Solutions ranks worse than 73.47% on this metric.

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Coveo Solutions's Degree of Operating Leverage for the quarter that ended in Jun. 2026 was 3.01. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Coveo Solutions's Degree of Operating Leverage or its related term are showing as below:

CVOSF's Degree of Operating Leverage is ranked worse than
73.47% of 2710 companies
in the Software industry
Industry Median: 0.64 vs CVOSF: 3.01

Coveo Solutions  (OTCPK:CVOSF) 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.


Coveo Solutions Degree of Operating Leverage Related Terms


Coveo Solutions Degree of Operating Leverage Historical Data

* Premium members only.

The historical data trend for Coveo Solutions'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.

Coveo Solutions Degree of Operating Leverage Chart

Coveo Solutions Annual Data
Trend Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
Degree of Operating Leverage
Get a 7-Day Free Trial -2.20 -3.13 -3.07 -3.38 8.16

Coveo Solutions Quarterly Data
Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26 Jun26
Degree of Operating Leverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.39 0.76 1.60 8.16 3.01

CVOSF vs MSFT, ORCL, PLTR: Degree of Operating Leverage Comparison

For the Software - Infrastructure subindustry, Coveo Solutions'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.


Coveo Solutions Degree of Operating Leverage vs Software Industry

For the Software industry and Technology sector, Coveo Solutions's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Coveo Solutions's Degree of Operating Leverage falls into.


CVOSF
68GF Score
Coveo Solutions Inc CVOSF
Degree of Operating Leverage is just one metric. See GF Score™, valuation, warning signs, and more.
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Coveo Solutions Degree of Operating Leverage Calculation

Coveo Solutions's Degree of Operating Leverage for the quarter that ended in Jun. 2026 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( -22.536 (Jun. 2026) / -17.599 (Jun. 2025) - 1 )/( 151.342 (Jun. 2026) / 136.6 (Jun. 2025) - 1 )
=0.2805/0.1079
=2.60***

* 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 3.01 mean?
Coveo Solutions (CVOSF) has a Degree of Operating Leverage of 3.01 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 Coveo Solutions and its competitors. According to the industry distribution chart, Coveo Solutions ranks #1991 out of 2710 companies in the Software industry, placing it in the top 73.5%.
Is Coveo Solutions' Degree of Operating Leverage too high?
Coveo Solutions' current Degree of Operating Leverage is 3.01. The Software industry median Degree of Operating Leverage is 0.64. Coveo Solutions' value of 3.01 is 370.3% above this industry median. Based on the distribution chart, Coveo Solutions ranks #1991 out of 2710 companies in the Software industry, which is below the industry midpoint. Overall, Coveo Solutions has a GF Score™ of 68/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Coveo Solutions' Degree of Operating Leverage compare to MSFT and ORCL?
According to the Software industry distribution chart, Coveo Solutions ranks #1991 out of 2710 companies for Degree of Operating Leverage. This places Coveo Solutions in the lower half of its industry. The industry median Degree of Operating Leverage is 0.64. Coveo Solutions' value of 3.01 is 370.3% 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 Software company?
The median Degree of Operating Leverage among Software companies is 0.64, based on 2,710 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. Coveo Solutions's current Degree of Operating Leverage of 3.01 is 370.3% 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 Coveo Solutions and its competitors. For the Software industry, the median Degree of Operating Leverage is 0.64 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Coveo Solutions's current Degree of Operating Leverage is 3.01. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Coveo Solutions stock overvalued right now?
Based on GuruFocus' analysis, Coveo Solutions (CVOSF) is currently considered Possible Value Trap. The stock's GF Value™ is $5.76, compared to a current price of $3.12 — trading 45.8% below its estimated fair value. The current Degree of Operating Leverage is 3.01 and 370.3% above the Software industry median of 0.64. Coveo Solutions' overall GF Score™ is 68/100 with 1 warning sign 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 Coveo Solutions (CVOSF), the current Degree of Operating Leverage is 3.01 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 Coveo Solutions (CVOSF) Overvalued in 2026?

Based on GuruFocus' analysis, Coveo Solutions stock appears to be undervalued. The current stock price of $3.12 is trading 45.8% below its estimated GF Value™ of $5.76. GuruFocus considers Coveo Solutions to be Possible Value Trap.

Key valuation signals for CVOSF:

  • Degree of Operating Leverage: 3.01
  • GF Value™: $5.76 vs. price of $3.12 (45.8% below fair value)
  • GF Score™: 68/100 with 1 warning sign
  • Industry Position: 370.3% above the Software median (#1991 of 2710)

No single metric tells the full story. See the CVOSF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Coveo Solutions Business Description

Other Exchanges I94:GermanyCVO:Canada
Address 1100 avenue des Canadiens-de-Montreal, Suite 401, Montreal, QC, CAN, H3B 2S2
Coveo Solutions Inc is an AI-powered platform. It provides applied AI solutions enabling enterprises to deliver relevant digital experiences at scale. The Company's Software as a Service ("SaaS") AI platform and suite of AI models and products are designed to bring AI-Relevance across commerce, service, website, and workplace applications. Geographically, the company generates maximum revenue from the United States, followed by Canada, and other regions.
68GF Score

Get the complete analysis for CVOSF

Degree of Operating Leverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$3.12
Price
$5.76
GF Value