FRECF (Frequency Exchange) Degree of Operating Leverage : -3.36 (As of Mar. 2026)

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Director of Data and Quant Analytics at GuruFocus
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FRECF Frequency Exchange Corp FRECF
8 GF Score
Price $0.16
GF Value $0.08
Valuation Significantly Overvalued
! 4 Warning Signs
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What is Frequency Exchange Degree of Operating Leverage?

Frequency Exchange FRECF -18.82% 8 Degree of Operating Leverage is -3.36 as of Mar. 2026. GuruFocus rates FRECF with a GF Score™ of 8/100 and a GF Value™ of $0.08 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 786 Medical Devices & Instruments companies, Frequency Exchange ranks better than 75.45% on this metric.

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Frequency Exchange's Degree of Operating Leverage for the quarter that ended in Mar. 2026 was -3.36. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Frequency Exchange's Degree of Operating Leverage or its related term are showing as below:

FRECF's Degree of Operating Leverage is ranked better than
75.45% of 786 companies
in the Medical Devices & Instruments industry
Industry Median: 0.23 vs FRECF: -3.36

Frequency Exchange  (OTCPK:FRECF) 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.


Frequency Exchange Degree of Operating Leverage Related Terms


Frequency Exchange Degree of Operating Leverage Historical Data

* Premium members only.

The historical data trend for Frequency Exchange'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.

Frequency Exchange Degree of Operating Leverage Chart

Frequency Exchange Annual Data
Trend Oct20 Oct21 Dec22 Dec23 Dec24 Dec25
Degree of Operating Leverage
Get a 7-Day Free Trial 0.00 0.00 -0.16 -0.67 -2.91

Frequency Exchange Quarterly Data
Oct20 Jan21 Oct21 Jan22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Degree of Operating Leverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -0.75 -1.10 0.04 -2.91 -3.36

FRECF vs ABT, SYK, MDT: Degree of Operating Leverage Comparison

For the Medical Devices subindustry, Frequency Exchange'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.


Frequency Exchange Degree of Operating Leverage vs Medical Devices & Instruments Industry

For the Medical Devices & Instruments industry and Healthcare sector, Frequency Exchange's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Frequency Exchange's Degree of Operating Leverage falls into.


FRECF
8GF Score
Frequency Exchange Corp FRECF
Degree of Operating Leverage is just one metric. See GF Score™, valuation, warning signs, and more.
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Frequency Exchange Degree of Operating Leverage Calculation

Frequency Exchange's Degree of Operating Leverage for the quarter that ended in Mar. 2026 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( -1.349 (Mar. 2026) / -0.591 (Mar. 2025) - 1 )/( 0.542 (Mar. 2026) / 0.849 (Mar. 2025) - 1 )
=1.2826/-0.3616
=-3.55***

* 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 -3.36 mean?
Frequency Exchange (FRECF) has a Degree of Operating Leverage of -3.36 as of Mar. 2026. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for Frequency Exchange and its competitors. According to the industry distribution chart, Frequency Exchange ranks #193 out of 786 companies in the Medical Devices & Instruments industry, placing it in the top 24.6%.
Is Frequency Exchange's Degree of Operating Leverage too high?
Frequency Exchange's current Degree of Operating Leverage is -3.36. Based on the distribution chart, Frequency Exchange ranks #193 out of 786 companies in the Medical Devices & Instruments industry, which is in the top quartile — a strong position relative to peers. Overall, Frequency Exchange has a GF Score™ of 8/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Frequency Exchange's Degree of Operating Leverage compare to ABT and SYK?
According to the Medical Devices & Instruments industry distribution chart, Frequency Exchange ranks #193 out of 786 companies for Degree of Operating Leverage. This places Frequency Exchange in the top 25% of its industry — outperforming the majority of peers. The industry median Degree of Operating Leverage is 0.23. 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 Medical Devices & Instruments company?
The median Degree of Operating Leverage among Medical Devices & Instruments companies is 0.23, based on 786 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. 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 Frequency Exchange and its competitors. For the Medical Devices & Instruments industry, the median Degree of Operating Leverage is 0.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Frequency Exchange's current Degree of Operating Leverage is -3.36. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Frequency Exchange stock overvalued right now?
Based on GuruFocus' analysis, Frequency Exchange (FRECF) is currently considered Significantly Overvalued. The stock's GF Value™ is $0.08, compared to a current price of $0.16 — trading 100% above its estimated fair value. The current Degree of Operating Leverage is -3.36. Frequency Exchange's overall GF Score™ is 8/100 with 4 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 Frequency Exchange (FRECF), the current Degree of Operating Leverage is -3.36 as of Mar. 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 Frequency Exchange (FRECF) Overvalued in 2026?

Based on GuruFocus' analysis, Frequency Exchange stock appears to be overvalued. The current stock price of $0.16 is trading 100% above its estimated GF Value™ of $0.08. GuruFocus considers Frequency Exchange to be Significantly Overvalued.

Key valuation signals for FRECF:

  • Degree of Operating Leverage: -3.36
  • GF Value™: $0.08 vs. price of $0.16 (100% above fair value)
  • GF Score™: 8/100 with 4 warning signs

No single metric tells the full story. See the FRECF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Frequency Exchange Business Description

Other Exchanges FREQ:Canada
Address 1498 West 5th Avenue, Vancouver, BC, CAN, V6H 4G3
Frequency Exchange Corp is focused on the development and world-wide commercialization of a wearable Frequency Delivery System providing specialized programs designed for health and wellness as well as performance enhancement. The company has one operating and reportable segment which the sale of wearable devices. Geographically, it operates in Canada; United States; and International.
8GF Score

Get the complete analysis for FRECF

Degree of Operating Leverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$0.16
Price
$0.08
GF Value