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Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue.
Lianhua Supermarket Holdings Co's Degree of Operating Leverage for the quarter that ended in Dec. 2025 was 13.22. The higher Degree of Operating Leverage, the higher operating risk the company will take.
The industry rank for Lianhua Supermarket Holdings Co's Degree of Operating Leverage or its related term are showing as below:
FRA:LSJ's Degree of Operating Leverage is ranked worse than 85.58% of 1103
companies
in the Retail - Cyclical industry
Industry Median: 1.22
vs FRA:LSJ: 13.22
Lianhua Supermarket Holdings Co (FRA:LSJ) 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.
Lianhua Supermarket Holdings Co Degree of Operating Leverage Related Terms
Lianhua Supermarket Holdings 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.
Lianhua Supermarket Holdings Co Degree of Operating Leverage Chart
FRA:LSJ vs DDS: Degree of Operating Leverage Comparison
For the Department Stores subindustry, Lianhua Supermarket Holdings 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.
Lianhua Supermarket Holdings Co Degree of Operating Leverage vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Lianhua Supermarket Holdings Co's Degree of Operating Leverage distribution charts can be found below:
* The bar in red indicates where Lianhua Supermarket Holdings 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 13.22 mean?
Lianhua Supermarket Holdings Co (FRA:LSJ) has a Degree of Operating Leverage of 13.22 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 Lianhua Supermarket Holdings Co and its competitors. According to the industry distribution chart, Lianhua Supermarket Holdings Co ranks #944 out of 1103 companies in the Retail - Cyclical industry, placing it in the top 85.6%.
Is Lianhua Supermarket Holdings Co's Degree of Operating Leverage too high?
Lianhua Supermarket Holdings Co's current Degree of Operating Leverage is 13.22. The Retail - Cyclical industry median Degree of Operating Leverage is 1.22. Lianhua Supermarket Holdings Co's value of 13.22 is 983.6% above this industry median. Based on the distribution chart, Lianhua Supermarket Holdings Co ranks #944 out of 1103 companies in the Retail - Cyclical industry, which is in the bottom quartile relative to peers. Overall, Lianhua Supermarket Holdings Co has a GF Score™ of 33/100, reflecting its overall financial health beyond just this single metric.
How does Lianhua Supermarket Holdings Co's Degree of Operating Leverage compare to DDS?
According to the Retail - Cyclical industry distribution chart, Lianhua Supermarket Holdings Co ranks #944 out of 1103 companies for Degree of Operating Leverage. This places Lianhua Supermarket Holdings Co in the lower half of its industry. The industry median Degree of Operating Leverage is 1.22. Lianhua Supermarket Holdings Co's value of 13.22 is 983.6% 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 Retail - Cyclical company?
The median Degree of Operating Leverage among Retail - Cyclical companies is 1.22, based on 1,103 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. Lianhua Supermarket Holdings Co's current Degree of Operating Leverage of 13.22 is 983.6% 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 Lianhua Supermarket Holdings Co and its competitors. For the Retail - Cyclical industry, the median Degree of Operating Leverage is 1.22 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lianhua Supermarket Holdings Co's current Degree of Operating Leverage is 13.22. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lianhua Supermarket Holdings Co stock overvalued right now?
Lianhua Supermarket Holdings Co (FRA:LSJ) has a current Degree of Operating Leverage of 13.22. The stock's GF Value™ is €0.01, compared to a current price of €0.02 — trading 90% above its estimated fair value. The current Degree of Operating Leverage is 13.22 and 983.6% above the Retail - Cyclical industry median of 1.22. Lianhua Supermarket Holdings Co's overall GF Score™ is 33/100 with 7 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 Lianhua Supermarket Holdings Co (FRA:LSJ), the current Degree of Operating Leverage is 13.22 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 Lianhua Supermarket Holdings Co (FRA:LSJ) Overvalued in 2026?
Based on GuruFocus' analysis, Lianhua Supermarket Holdings Co stock appears to be overvalued.
The current stock price of €0.02 is trading 90% above its estimated GF Value™ of €0.01.
Key valuation signals for FRA:LSJ:
Degree of Operating Leverage: 13.22
GF Value™: €0.01 vs. price of €0.02 (90% above fair value)
Industry Position: 983.6% above the Retail - Cyclical median (#944 of 1103)
No single metric tells the full story. See the FRA:LSJ stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Lianhua Supermarket Holdings Co Ltd is engaged in operation of chain stores including supermarkets, hypermarkets and convenience stores in the eastern region of the PRC. The company's reportable segments include hypermarkets, supermarkets, convenience stores, and Other operations. These segments expand under the brand names of Century Mart, Lianhua Supermarket, Hualian Supermarket, and Lianhua Quik. The maximum of the revenue is derived from the Supermarket segment.
33GF Score
Get the complete analysis for FRA:LSJ
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