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Royal GoldFRA:RG3 85 Degree of Operating Leverage is 0.89 as of Jun. 2026. GuruFocus rates FRA:RG3 with a GF Score™ of 85/100 and a GF Value™ of €246.50 (Fairly Valued). The stock has 2 warning signs investors should review. Among 748 Metals & Mining companies, Royal Gold ranks better than 55.35% on this metric.
Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue.
Royal Gold's Degree of Operating Leverage for the quarter that ended in Jun. 2026 was 0.89. The higher Degree of Operating Leverage, the higher operating risk the company will take.
The industry rank for Royal Gold's Degree of Operating Leverage or its related term are showing as below:
FRA:RG3's Degree of Operating Leverage is ranked better than 55.35% of 748
companies
in the Metals & Mining industry
Industry Median: 1.255
vs FRA:RG3: 0.89
Royal Gold (FRA:RG3) 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.
Royal Gold Degree of Operating Leverage Related Terms
Royal Gold Degree of Operating Leverage Historical Data
* Premium members only.
The historical data trend for Royal Gold'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.
FRA:RG3 vs CDE, AUGO, HYMC: Degree of Operating Leverage Comparison
For the Gold subindustry, Royal Gold'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.
Royal Gold Degree of Operating Leverage vs Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Royal Gold's Degree of Operating Leverage distribution charts can be found below:
* The bar in red indicates where Royal Gold'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 0.89 mean?
Royal Gold (FRA:RG3) has a Degree of Operating Leverage of 0.89 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 Royal Gold and its competitors. According to the industry distribution chart, Royal Gold ranks #334 out of 748 companies in the Metals & Mining industry, placing it in the top 44.7%.
Is Royal Gold's Degree of Operating Leverage too high?
Royal Gold's current Degree of Operating Leverage is 0.89. The Metals & Mining industry median Degree of Operating Leverage is 1.26. Royal Gold's value of 0.89 is 29.1% below this industry median. Based on the distribution chart, Royal Gold ranks #334 out of 748 companies in the Metals & Mining industry, which is above the industry midpoint. Overall, Royal Gold has a GF Score™ of 85/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Royal Gold's Degree of Operating Leverage compare to CDE and AUGO?
According to the Metals & Mining industry distribution chart, Royal Gold ranks #334 out of 748 companies for Degree of Operating Leverage. This puts Royal Gold in the upper half of its industry. The industry median Degree of Operating Leverage is 1.26. Royal Gold's value of 0.89 is 29.1% 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 Metals & Mining company?
The median Degree of Operating Leverage among Metals & Mining companies is 1.26, based on 748 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. Royal Gold's current Degree of Operating Leverage of 0.89 is 29.1% 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 Royal Gold and its competitors. For the Metals & Mining industry, the median Degree of Operating Leverage is 1.26 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Royal Gold's current Degree of Operating Leverage is 0.89. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Royal Gold stock overvalued right now?
Based on GuruFocus' analysis, Royal Gold (FRA:RG3) is currently considered Fairly Valued. The stock's GF Value™ is €246.50, compared to a current price of €225.70 — trading 8.4% below its estimated fair value. The current Degree of Operating Leverage is 0.89 and 29.1% below the Metals & Mining industry median of 1.26. Royal Gold's overall GF Score™ is 85/100 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 Royal Gold (FRA:RG3), the current Degree of Operating Leverage is 0.89 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 Royal Gold (FRA:RG3) Overvalued in 2026?
Based on GuruFocus' analysis, Royal Gold stock appears to be undervalued.
The current stock price of €225.70 is trading 8.4% below its estimated GF Value™ of €246.50.
GuruFocus considers Royal Gold to be Fairly Valued.
Key valuation signals for FRA:RG3:
Degree of Operating Leverage: 0.89
GF Value™: €246.50 vs. price of €225.70 (8.4% below fair value)
Industry Position: 29.1% below the Metals & Mining median (#334 of 748)
No single metric tells the full story. See the FRA:RG3 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Royal Gold Inc enquires and manages precious metal royalties and streams with a focus on gold. The company purchases a percentage of the metal produced from a mineral property for an initial payment without assuming responsibility for mining operations. Similarly, precious metal streams are purchase agreements with mine operators providing the right to purchase all or a portion of one or more metals produced from a mine in exchange for an upfront deposit payment. Generally, Royal Gold does not work on the properties in which it holds royalty and streaming assets. The company owns a portfolio of producing, development, evaluation, and exploration royalties and streams, and the majority of group revenue is generated from Canada, Mexico, Chile, and the United States.
85GF 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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