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Epiroc ABEPIPF 96 Degree of Operating Leverage is 1.86 as of Jun. 2026. GuruFocus rates EPIPF with a GF Score™ of 96/100 and a GF Value™ of $16.42. The stock has 3 warning signs investors should review. Among 205 Farm & Heavy Construction Machinery companies, Epiroc AB ranks worse than 62.44% on this metric.
Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue.
Epiroc AB's Degree of Operating Leverage for the quarter that ended in Jun. 2026 was 1.86. The higher Degree of Operating Leverage, the higher operating risk the company will take.
The industry rank for Epiroc AB's Degree of Operating Leverage or its related term are showing as below:
EPIPF's Degree of Operating Leverage is ranked worse than 62.44% of 205
companies
in the Farm & Heavy Construction Machinery industry
Industry Median: 1.02
vs EPIPF: 1.86
Epiroc AB (OTCPK:EPIPF) 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.
Epiroc AB Degree of Operating Leverage Related Terms
Epiroc AB Degree of Operating Leverage Historical Data
* Premium members only.
The historical data trend for Epiroc AB'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.
EPIPF vs CAT, DE, PCAR: Degree of Operating Leverage Comparison
For the Farm & Heavy Construction Machinery subindustry, Epiroc AB'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.
Epiroc AB Degree of Operating Leverage vs Farm & Heavy Construction Machinery Industry
For the Farm & Heavy Construction Machinery industry and Industrials sector, Epiroc AB's Degree of Operating Leverage distribution charts can be found below:
* The bar in red indicates where Epiroc AB'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 1.86 mean?
Epiroc AB (EPIPF) has a Degree of Operating Leverage of 1.86 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 Epiroc AB and its competitors. According to the industry distribution chart, Epiroc AB ranks #128 out of 205 companies in the Farm & Heavy Construction Machinery industry, placing it in the top 62.4%.
Is Epiroc AB's Degree of Operating Leverage too high?
Epiroc AB's current Degree of Operating Leverage is 1.86. The Farm & Heavy Construction Machinery industry median Degree of Operating Leverage is 1.02. Epiroc AB's value of 1.86 is 82.4% above this industry median. Based on the distribution chart, Epiroc AB ranks #128 out of 205 companies in the Farm & Heavy Construction Machinery industry, which is below the industry midpoint. Overall, Epiroc AB has a GF Score™ of 96/100, reflecting its overall financial health beyond just this single metric.
How does Epiroc AB's Degree of Operating Leverage compare to CAT and DE?
According to the Farm & Heavy Construction Machinery industry distribution chart, Epiroc AB ranks #128 out of 205 companies for Degree of Operating Leverage. This places Epiroc AB in the lower half of its industry. The industry median Degree of Operating Leverage is 1.02. Epiroc AB's value of 1.86 is 82.4% 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 Farm & Heavy Construction Machinery company?
The median Degree of Operating Leverage among Farm & Heavy Construction Machinery companies is 1.02, based on 205 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. Epiroc AB's current Degree of Operating Leverage of 1.86 is 82.4% 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 Epiroc AB and its competitors. For the Farm & Heavy Construction Machinery industry, the median Degree of Operating Leverage is 1.02 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Epiroc AB's current Degree of Operating Leverage is 1.86. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Epiroc AB stock overvalued right now?
Epiroc AB (EPIPF) has a current Degree of Operating Leverage of 1.86. The stock's GF Value™ is $16.42, compared to a current price of $19.15 — trading 16.6% above its estimated fair value. The current Degree of Operating Leverage is 1.86 and 82.4% above the Farm & Heavy Construction Machinery industry median of 1.02. Epiroc AB's overall GF Score™ is 96/100 with 3 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 Epiroc AB (EPIPF), the current Degree of Operating Leverage is 1.86 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 Epiroc AB (EPIPF) Overvalued in 2026?
Based on GuruFocus' analysis, Epiroc AB stock appears to be overvalued.
The current stock price of $19.15 is trading 16.6% above its estimated GF Value™ of $16.42.
Key valuation signals for EPIPF:
Degree of Operating Leverage: 1.86
GF Value™: $16.42 vs. price of $19.15 (16.6% above fair value)
Industry Position: 82.4% above the Farm & Heavy Construction Machinery median (#128 of 205)
No single metric tells the full story. See the EPIPF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Epiroc is a global manufacturer of niche equipment and services used by mining and infrastructure customers. The company's products include hard rock drilling equipment and excavation technologies for underground and surface mining, as well as servicing and spare parts. Approximately 69% of group sales are from the aftermarket, which includes services and the sale of spare parts and consumables. Epiroc was spun out of Atlas Copco and listed as a stand-alone company on Nasdaq Stockholm in 2018.
96GF 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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