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Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue.
Universal Insurance Holdings's Degree of Operating Leverage for the quarter that ended in Jun. 2026 was 52.51. The higher Degree of Operating Leverage, the higher operating risk the company will take.
The industry rank for Universal Insurance Holdings's Degree of Operating Leverage or its related term are showing as below:
FRA:5UI's Degree of Operating Leverage is ranked worse than 97.73% of 353
companies
in the Insurance industry
Industry Median: 0.97
vs FRA:5UI: 52.51
Universal Insurance Holdings (FRA:5UI) 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.
Universal Insurance Holdings Degree of Operating Leverage Related Terms
Universal Insurance Holdings 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.
Universal Insurance Holdings Degree of Operating Leverage Chart
FRA:5UI vs ASIC, TRUP, BOW: Degree of Operating Leverage Comparison
For the Insurance - Property & Casualty subindustry, Universal Insurance Holdings'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.
Universal Insurance Holdings Degree of Operating Leverage vs Insurance Industry
For the Insurance industry and Financial Services sector, Universal Insurance Holdings's Degree of Operating Leverage distribution charts can be found below:
* The bar in red indicates where Universal Insurance Holdings'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 52.51 mean?
Universal Insurance Holdings (FRA:5UI) has a Degree of Operating Leverage of 52.51 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 Universal Insurance Holdings and its competitors. According to the industry distribution chart, Universal Insurance Holdings ranks #345 out of 353 companies in the Insurance industry, placing it in the top 97.7%.
Is Universal Insurance Holdings' Degree of Operating Leverage too high?
Universal Insurance Holdings' current Degree of Operating Leverage is 52.51. The Insurance industry median Degree of Operating Leverage is 0.97. Universal Insurance Holdings' value of 52.51 is 5313.4% above this industry median. Based on the distribution chart, Universal Insurance Holdings ranks #345 out of 353 companies in the Insurance industry, which is in the bottom quartile relative to peers. Overall, Universal Insurance Holdings has a GF Score™ of 64/100, reflecting its overall financial health beyond just this single metric.
How does Universal Insurance Holdings' Degree of Operating Leverage compare to ASIC and TRUP?
According to the Insurance industry distribution chart, Universal Insurance Holdings ranks #345 out of 353 companies for Degree of Operating Leverage. This places Universal Insurance Holdings in the lower half of its industry. The industry median Degree of Operating Leverage is 0.97. Universal Insurance Holdings' value of 52.51 is 5313.4% 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 an Insurance company?
The median Degree of Operating Leverage among Insurance companies is 0.97, based on 353 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. Universal Insurance Holdings's current Degree of Operating Leverage of 52.51 is 5313.4% 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 Universal Insurance Holdings and its competitors. For the Insurance industry, the median Degree of Operating Leverage is 0.97 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Universal Insurance Holdings's current Degree of Operating Leverage is 52.51. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Universal Insurance Holdings stock overvalued right now?
Universal Insurance Holdings (FRA:5UI) has a current Degree of Operating Leverage of 52.51. The stock's GF Value™ is €32.16, compared to a current price of €38.40 — trading 19.4% above its estimated fair value. The current Degree of Operating Leverage is 52.51 and 5313.4% above the Insurance industry median of 0.97. Universal Insurance Holdings' overall GF Score™ is 64/100 with 8 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 Universal Insurance Holdings (FRA:5UI), the current Degree of Operating Leverage is 52.51 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 Universal Insurance Holdings (FRA:5UI) Overvalued in 2026?
Based on GuruFocus' analysis, Universal Insurance Holdings stock appears to be overvalued.
The current stock price of €38.40 is trading 19.4% above its estimated GF Value™ of €32.16.
Key valuation signals for FRA:5UI:
Degree of Operating Leverage: 52.51
GF Value™: €32.16 vs. price of €38.40 (19.4% above fair value)
Industry Position: 5313.4% above the Insurance median (#345 of 353)
No single metric tells the full story. See the FRA:5UI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Universal Insurance Holdings Inc is an insurance holding company. Through its subsidiaries, the company mainly offers property and casualty insurance and value-added insurance services. It develops, markets, and underwrites insurance products for consumers predominantly in the personal residential homeowners lines of business and performs all other insurance-related services for its primary insurance entities, including risk management, claims management, and distribution. The group offers the following types of personal residential insurance: homeowners, renters/tenants, condo unit owners, and dwelling/fire, through an independent agent network and online distribution channels across multiple states in the United States of America.
64GF 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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