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Fast Retailing CoFRCOF +11.27%93 Degree of Operating Leverage is 2.10 as of May. 2026. GuruFocus rates FRCOF with a GF Score™ of 93/100 and a GF Value™ of $337.73 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 1,109 Retail - Cyclical companies, Fast Retailing Co ranks worse than 59.51% on this metric.
Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue.
Fast Retailing Co's Degree of Operating Leverage for the quarter that ended in May. 2026 was 2.10. The higher Degree of Operating Leverage, the higher operating risk the company will take.
The industry rank for Fast Retailing Co's Degree of Operating Leverage or its related term are showing as below:
FRCOF's Degree of Operating Leverage is ranked worse than 59.51% of 1109
companies
in the Retail - Cyclical industry
Industry Median: 1.19
vs FRCOF: 2.10
Fast Retailing Co (OTCPK:FRCOF) 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.
Fast Retailing Co Degree of Operating Leverage Related Terms
Fast Retailing Co Degree of Operating Leverage Historical Data
* Premium members only.
The historical data trend for Fast Retailing Co'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.
Fast Retailing Co Degree of Operating Leverage Chart
FRCOF vs TJX, ROST, BURL: Degree of Operating Leverage Comparison
For the Apparel Retail subindustry, Fast Retailing 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.
Fast Retailing Co Degree of Operating Leverage vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Fast Retailing Co's Degree of Operating Leverage distribution charts can be found below:
* The bar in red indicates where Fast Retailing 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 2.10 mean?
Fast Retailing Co (FRCOF) has a Degree of Operating Leverage of 2.10 as of May. 2026. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for Fast Retailing Co and its competitors. According to the industry distribution chart, Fast Retailing Co ranks #660 out of 1109 companies in the Retail - Cyclical industry, placing it in the top 59.5%.
Is Fast Retailing Co's Degree of Operating Leverage too high?
Fast Retailing Co's current Degree of Operating Leverage is 2.10. The Retail - Cyclical industry median Degree of Operating Leverage is 1.19. Fast Retailing Co's value of 2.10 is 76.5% above this industry median. Based on the distribution chart, Fast Retailing Co ranks #660 out of 1109 companies in the Retail - Cyclical industry, which is below the industry midpoint. Overall, Fast Retailing Co has a GF Score™ of 93/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Fast Retailing Co's Degree of Operating Leverage compare to TJX and ROST?
According to the Retail - Cyclical industry distribution chart, Fast Retailing Co ranks #660 out of 1109 companies for Degree of Operating Leverage. This places Fast Retailing Co in the lower half of its industry. The industry median Degree of Operating Leverage is 1.19. Fast Retailing Co's value of 2.10 is 76.5% 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 1.19, based on 1,109 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. Fast Retailing Co's current Degree of Operating Leverage of 2.10 is 76.5% 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 Fast Retailing Co and its competitors. For the Retail - Cyclical industry, the median Degree of Operating Leverage is 1.19 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Fast Retailing Co's current Degree of Operating Leverage is 2.10. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Fast Retailing Co stock overvalued right now?
Based on GuruFocus' analysis, Fast Retailing Co (FRCOF) is currently considered Significantly Overvalued. The stock's GF Value™ is $337.73, compared to a current price of $497.45 — trading 47.3% above its estimated fair value. The current Degree of Operating Leverage is 2.10 and 76.5% above the Retail - Cyclical industry median of 1.19. Fast Retailing Co's overall GF Score™ is 93/100 with 3 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 Fast Retailing Co (FRCOF), the current Degree of Operating Leverage is 2.10 as of May. 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 Fast Retailing Co (FRCOF) Overvalued in 2026?
Based on GuruFocus' analysis, Fast Retailing Co stock appears to be overvalued.
The current stock price of $497.45 is trading 47.3% above its estimated GF Value™ of $337.73.
GuruFocus considers Fast Retailing Co to be Significantly Overvalued.
Key valuation signals for FRCOF:
Degree of Operating Leverage: 2.10
GF Value™: $337.73 vs. price of $497.45 (47.3% above fair value)
Industry Position: 76.5% above the Retail - Cyclical median (#660 of 1109)
No single metric tells the full story. See the FRCOF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Fast Retailing is Japan's largest apparel company. It operates casualwear retail chain Uniqlo, known for its high-quality functional apparel at reasonable prices. Fast Retailing is in charge of product design and sales and outsources almost all of its production to factories in places including China, Vietnam, Bangladesh, Indonesia, and India. It is ranked the second-largest apparel company by sales globally in 2024 per Euromonitor, thanks to the expansion of Uniqlo International. As of February 2025, it ran 3,616 stores globally. Other brands in its portfolio include GU and acquired brands like Theory, Comptoir des Cotonniers, and Princesse tam.tam. The Yanai family owned a 40.86% stake in the firm as of July 2025.
93GF Score
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