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Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue.
Daito Trust Construction Co's Degree of Operating Leverage for the quarter that ended in Jun. 2026 was 1.53. The higher Degree of Operating Leverage, the higher operating risk the company will take.
The industry rank for Daito Trust Construction Co's Degree of Operating Leverage or its related term are showing as below:
DIFTY's Degree of Operating Leverage is ranked worse than 63.17% of 1705
companies
in the Real Estate industry
Industry Median: 0.81
vs DIFTY: 1.53
Daito Trust Construction Co (OTCPK:DIFTY) 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.
Daito Trust Construction Co Degree of Operating Leverage Related Terms
Daito Trust Construction 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.
Daito Trust Construction Co Degree of Operating Leverage Chart
Daito Trust Construction Co Degree of Operating Leverage Competitor Comparison
For the Real Estate - Diversified subindustry, Daito Trust Construction 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.
Daito Trust Construction Co Degree of Operating Leverage vs Real Estate Industry
For the Real Estate industry and Real Estate sector, Daito Trust Construction Co's Degree of Operating Leverage distribution charts can be found below:
* The bar in red indicates where Daito Trust Construction 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 1.53 mean?
Daito Trust Construction Co (DIFTY) has a Degree of Operating Leverage of 1.53 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 Daito Trust Construction Co and its competitors. According to the industry distribution chart, Daito Trust Construction Co ranks #1077 out of 1705 companies in the Real Estate industry, placing it in the top 63.2%.
Is Daito Trust Construction Co's Degree of Operating Leverage too high?
Daito Trust Construction Co's current Degree of Operating Leverage is 1.53. The Real Estate industry median Degree of Operating Leverage is 0.81. Daito Trust Construction Co's value of 1.53 is 88.9% above this industry median. Based on the distribution chart, Daito Trust Construction Co ranks #1077 out of 1705 companies in the Real Estate industry, which is below the industry midpoint. Overall, Daito Trust Construction Co has a GF Score™ of 77/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Daito Trust Construction Co's Degree of Operating Leverage compare to competitors?
According to the Real Estate industry distribution chart, Daito Trust Construction Co ranks #1077 out of 1705 companies for Degree of Operating Leverage. This places Daito Trust Construction Co in the lower half of its industry. The industry median Degree of Operating Leverage is 0.81. Daito Trust Construction Co's value of 1.53 is 88.9% 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 Real Estate company?
The median Degree of Operating Leverage among Real Estate companies is 0.81, based on 1,705 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. Daito Trust Construction Co's current Degree of Operating Leverage of 1.53 is 88.9% 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 Daito Trust Construction Co and its competitors. For the Real Estate industry, the median Degree of Operating Leverage is 0.81 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Daito Trust Construction Co's current Degree of Operating Leverage is 1.53. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Daito Trust Construction Co stock overvalued right now?
Based on GuruFocus' analysis, Daito Trust Construction Co (DIFTY) is currently considered Fairly Valued. The stock's GF Value™ is $4.95, compared to a current price of $5.03 — trading 1.6% above its estimated fair value. The current Degree of Operating Leverage is 1.53 and 88.9% above the Real Estate industry median of 0.81. Daito Trust Construction Co's overall GF Score™ is 77/100 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 Daito Trust Construction Co (DIFTY), the current Degree of Operating Leverage is 1.53 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 Daito Trust Construction Co (DIFTY) Overvalued in 2026?
Based on GuruFocus' analysis, Daito Trust Construction Co stock appears to be overvalued.
The current stock price of $5.03 is trading 1.6% above its estimated GF Value™ of $4.95.
GuruFocus considers Daito Trust Construction Co to be Fairly Valued.
Key valuation signals for DIFTY:
Degree of Operating Leverage: 1.53
GF Value™: $4.95 vs. price of $5.03 (1.6% above fair value)
Industry Position: 88.9% above the Real Estate median (#1077 of 1705)
No single metric tells the full story. See the DIFTY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Daito Trust Construction Co Ltd is a Japan-based company engaged in the construction and real estate businesses. The company operates through four reportable segments: Construction Business, Real Estate Leasing Business, Real Estate Development Business, and Financial Business segment. It proposes land use plans, undertakes construction and installation of rental housing, and engages in bulk leasing of properties, which are subleased to tenants under a rental management system. The company also acts as an intermediary for tenants, develops and sells income-generating real estate, and conducts investment condominium development. It generates the majority of its revenue from the Real estate rental business segment.
77GF 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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