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FIT Hon TengFITGF 61 Degree of Operating Leverage is 0.42 as of Dec. 2025. GuruFocus rates FITGF with a GF Score™ of 61/100 and a GF Value™ of $0.35 (Significantly Overvalued). The stock has 2 warning signs investors should review. Among 2,430 Hardware companies, FIT Hon Teng ranks better than 57.57% on this metric.
Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue.
FIT Hon Teng's Degree of Operating Leverage for the quarter that ended in Dec. 2025 was 0.42. The higher Degree of Operating Leverage, the higher operating risk the company will take.
The industry rank for FIT Hon Teng's Degree of Operating Leverage or its related term are showing as below:
FITGF's Degree of Operating Leverage is ranked better than 57.57% of 2430
companies
in the Hardware industry
Industry Median: 1.14
vs FITGF: 0.42
FIT Hon Teng (OTCPK:FITGF) 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.
FIT Hon Teng Degree of Operating Leverage Related Terms
FIT Hon Teng Degree of Operating Leverage Historical Data
* Premium members only.
The historical data trend for FIT Hon Teng'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.
FITGF vs APH, GLW, TEL: Degree of Operating Leverage Comparison
For the Electronic Components subindustry, FIT Hon Teng'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.
FIT Hon Teng Degree of Operating Leverage vs Hardware Industry
For the Hardware industry and Technology sector, FIT Hon Teng's Degree of Operating Leverage distribution charts can be found below:
* The bar in red indicates where FIT Hon Teng'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 0.42 mean?
FIT Hon Teng (FITGF) has a Degree of Operating Leverage of 0.42 as of Dec. 2025. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for FIT Hon Teng and its competitors. According to the industry distribution chart, FIT Hon Teng ranks #1031 out of 2430 companies in the Hardware industry, placing it in the top 42.4%.
Is FIT Hon Teng's Degree of Operating Leverage too high?
FIT Hon Teng's current Degree of Operating Leverage is 0.42. The Hardware industry median Degree of Operating Leverage is 1.14. FIT Hon Teng's value of 0.42 is 63.2% below this industry median. Based on the distribution chart, FIT Hon Teng ranks #1031 out of 2430 companies in the Hardware industry, which is above the industry midpoint. Overall, FIT Hon Teng has a GF Score™ of 61/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does FIT Hon Teng's Degree of Operating Leverage compare to APH and GLW?
According to the Hardware industry distribution chart, FIT Hon Teng ranks #1031 out of 2430 companies for Degree of Operating Leverage. This puts FIT Hon Teng in the upper half of its industry. The industry median Degree of Operating Leverage is 1.14. FIT Hon Teng's value of 0.42 is 63.2% 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 a Hardware company?
The median Degree of Operating Leverage among Hardware companies is 1.14, based on 2,430 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. FIT Hon Teng's current Degree of Operating Leverage of 0.42 is 63.2% 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 FIT Hon Teng and its competitors. For the Hardware industry, the median Degree of Operating Leverage is 1.14 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. FIT Hon Teng's current Degree of Operating Leverage is 0.42. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is FIT Hon Teng stock overvalued right now?
Based on GuruFocus' analysis, FIT Hon Teng (FITGF) is currently considered Significantly Overvalued. The stock's GF Value™ is $0.35, compared to a current price of $0.67 — trading 91.4% above its estimated fair value. The current Degree of Operating Leverage is 0.42 and 63.2% below the Hardware industry median of 1.14. FIT Hon Teng's overall GF Score™ is 61/100 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 FIT Hon Teng (FITGF), the current Degree of Operating Leverage is 0.42 as of Dec. 2025. 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 FIT Hon Teng (FITGF) Overvalued in 2026?
Based on GuruFocus' analysis, FIT Hon Teng stock appears to be overvalued.
The current stock price of $0.67 is trading 91.4% above its estimated GF Value™ of $0.35.
GuruFocus considers FIT Hon Teng to be Significantly Overvalued.
Key valuation signals for FITGF:
Degree of Operating Leverage: 0.42
GF Value™: $0.35 vs. price of $0.67 (91.4% above fair value)
Industry Position: 63.2% below the Hardware median (#1031 of 2430)
No single metric tells the full story. See the FITGF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
FIT Hon Teng Ltd is a manufacturer of electronic components. The company focuses on the development, manufacturing, and marketing of electronic and optoelectronic connectors, acoustic components, cables, and modules for applications in computers, communication equipment, consumer electronics, automobiles, and industrial and green energy field products. Geographically, the group has a business presence in the U.S., the PRC, Taiwan, Hong Kong, the United Kingdom, Singapore, Germany, and other countries, of which a majority of revenue is derived from the U.S. Its business id further segmented as Intermediate products and Consumer products.
61GF 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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