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Titan MachineryFRA:3TY +0.97%61 Degree of Operating Leverage is 8.03 as of Jul. 2026. GuruFocus rates FRA:3TY with a GF Score™ of 61/100 and a GF Value™ of €14.34 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 158 Industrial Distribution companies, Titan Machinery ranks worse than 84.81% on this metric.
Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue.
Titan Machinery's Degree of Operating Leverage for the quarter that ended in Jul. 2026 was 8.03. The higher Degree of Operating Leverage, the higher operating risk the company will take.
The industry rank for Titan Machinery's Degree of Operating Leverage or its related term are showing as below:
FRA:3TY's Degree of Operating Leverage is ranked worse than 84.81% of 158
companies
in the Industrial Distribution industry
Industry Median: 0.99
vs FRA:3TY: 8.03
Titan Machinery (FRA:3TY) 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.
Titan Machinery Degree of Operating Leverage Related Terms
Titan Machinery Degree of Operating Leverage Historical Data
* Premium members only.
The historical data trend for Titan Machinery'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.
Titan Machinery Degree of Operating Leverage Chart
FRA:3TY vs BXC, EVI, WATR: Degree of Operating Leverage Comparison
For the Industrial Distribution subindustry, Titan Machinery'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.
Titan Machinery Degree of Operating Leverage vs Industrial Distribution Industry
For the Industrial Distribution industry and Industrials sector, Titan Machinery's Degree of Operating Leverage distribution charts can be found below:
* The bar in red indicates where Titan Machinery'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 8.03 mean?
Titan Machinery (FRA:3TY) has a Degree of Operating Leverage of 8.03 as of Jul. 2026. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for Titan Machinery and its competitors. According to the industry distribution chart, Titan Machinery ranks #134 out of 158 companies in the Industrial Distribution industry, placing it in the top 84.8%.
Is Titan Machinery's Degree of Operating Leverage too high?
Titan Machinery's current Degree of Operating Leverage is 8.03. The Industrial Distribution industry median Degree of Operating Leverage is 0.99. Titan Machinery's value of 8.03 is 711.1% above this industry median. Based on the distribution chart, Titan Machinery ranks #134 out of 158 companies in the Industrial Distribution industry, which is in the bottom quartile relative to peers. Overall, Titan Machinery has a GF Score™ of 61/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Titan Machinery's Degree of Operating Leverage compare to BXC and EVI?
According to the Industrial Distribution industry distribution chart, Titan Machinery ranks #134 out of 158 companies for Degree of Operating Leverage. This places Titan Machinery in the lower half of its industry. The industry median Degree of Operating Leverage is 0.99. Titan Machinery's value of 8.03 is 711.1% 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 an Industrial Distribution company?
The median Degree of Operating Leverage among Industrial Distribution companies is 0.99, based on 158 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. Titan Machinery's current Degree of Operating Leverage of 8.03 is 711.1% 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 Titan Machinery and its competitors. For the Industrial Distribution industry, the median Degree of Operating Leverage is 0.99 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Titan Machinery's current Degree of Operating Leverage is 8.03. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Titan Machinery stock overvalued right now?
Based on GuruFocus' analysis, Titan Machinery (FRA:3TY) is currently considered Significantly Overvalued. The stock's GF Value™ is €14.34, compared to a current price of €20.80 — trading 45% above its estimated fair value. The current Degree of Operating Leverage is 8.03 and 711.1% above the Industrial Distribution industry median of 0.99. Titan Machinery's overall GF Score™ is 61/100 with 5 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 Titan Machinery (FRA:3TY), the current Degree of Operating Leverage is 8.03 as of Jul. 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 Titan Machinery (FRA:3TY) Overvalued in 2026?
Based on GuruFocus' analysis, Titan Machinery stock appears to be overvalued.
The current stock price of €20.80 is trading 45% above its estimated GF Value™ of €14.34.
GuruFocus considers Titan Machinery to be Significantly Overvalued.
Key valuation signals for FRA:3TY:
Degree of Operating Leverage: 8.03
GF Value™: €14.34 vs. price of €20.80 (45% above fair value)
Industry Position: 711.1% above the Industrial Distribution median (#134 of 158)
No single metric tells the full story. See the FRA:3TY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Titan Machinery Inc owns and operates a network of full-service agricultural and construction equipment stores. The company sells and repairs agricultural equipment, including machinery and attachments for large-scale farming and home and gardening purposes, as well as construction equipment. It operates through following segments: The Agriculture segment sells, services, and rents machinery and related parts and attachments, for uses ranging from large-scale farming to home and garden use, The construction segment sells, services, and rents machinery, and related parts and attachments, for uses ranging from heavy construction to light industrial machinery use, and the Europe and Australia segments.
61GF Score
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