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Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue.
Flexible Solutions International's Degree of Operating Leverage for the quarter that ended in Jun. 2026 was 28.12. The higher Degree of Operating Leverage, the higher operating risk the company will take.
Flexible Solutions International (AMEX:FSI) 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.
Flexible Solutions International Degree of Operating Leverage Related Terms
Flexible Solutions International 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.
Flexible Solutions International Degree of Operating Leverage Chart
FSI vs NTIC, FEAM, KBLB: Degree of Operating Leverage Comparison
For the Specialty Chemicals subindustry, Flexible Solutions International'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.
Flexible Solutions International Degree of Operating Leverage vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Flexible Solutions International's Degree of Operating Leverage distribution charts can be found below:
* The bar in red indicates where Flexible Solutions International'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 28.12 mean?
Flexible Solutions International (FSI) has a Degree of Operating Leverage of 28.12 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 Flexible Solutions International and its competitors. According to the industry distribution chart, Flexible Solutions International ranks #1440 out of 1569 companies in the Chemicals industry, placing it in the top 91.8%.
Is Flexible Solutions International's Degree of Operating Leverage too high?
Flexible Solutions International's current Degree of Operating Leverage is 28.12. The Chemicals industry median Degree of Operating Leverage is 1.28. Flexible Solutions International's value of 28.12 is 2096.9% above this industry median. Based on the distribution chart, Flexible Solutions International ranks #1440 out of 1569 companies in the Chemicals industry, which is in the bottom quartile relative to peers. Overall, Flexible Solutions International has a GF Score™ of 64/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Flexible Solutions International's Degree of Operating Leverage compare to NTIC and FEAM?
According to the Chemicals industry distribution chart, Flexible Solutions International ranks #1440 out of 1569 companies for Degree of Operating Leverage. This places Flexible Solutions International in the lower half of its industry. The industry median Degree of Operating Leverage is 1.28. Flexible Solutions International's value of 28.12 is 2096.9% 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 Chemicals company?
The median Degree of Operating Leverage among Chemicals companies is 1.28, based on 1,569 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. Flexible Solutions International's current Degree of Operating Leverage of 28.12 is 2096.9% 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 Flexible Solutions International and its competitors. For the Chemicals industry, the median Degree of Operating Leverage is 1.28 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Flexible Solutions International's current Degree of Operating Leverage is 28.12. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Flexible Solutions International stock overvalued right now?
Based on GuruFocus' analysis, Flexible Solutions International (FSI) is currently considered Significantly Overvalued. The stock's GF Value™ is $4.32, compared to a current price of $5.86 — trading 35.6% above its estimated fair value. The current Degree of Operating Leverage is 28.12 and 2096.9% above the Chemicals industry median of 1.28. Flexible Solutions International's overall GF Score™ is 64/100 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 Flexible Solutions International (FSI), the current Degree of Operating Leverage is 28.12 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 Flexible Solutions International (FSI) Overvalued in 2026?
Based on GuruFocus' analysis, Flexible Solutions International stock appears to be overvalued.
The current stock price of $5.86 is trading 35.6% above its estimated GF Value™ of $4.32.
GuruFocus considers Flexible Solutions International to be Significantly Overvalued.
Key valuation signals for FSI:
Degree of Operating Leverage: 28.12
GF Value™: $4.32 vs. price of $5.86 (35.6% above fair value)
Industry Position: 2096.9% above the Chemicals median (#1440 of 1569)
No single metric tells the full story. See the FSI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Flexible Solutions International Inc develops, manufactures, and markets specialty chemicals that slow the evaporation of water. Its business is organized into two segments: Energy and Water Conservation Products and Biodegradable Polymers. It offers a liquid swimming pool blanket under the WATERSAVR brand, which saves energy and water by inhibiting evaporation from the pool surface, and a chemical product called HEATSAV for use in swimming pools and spas to slow water evaporation. The company also manufactures and markets water-soluble chemicals utilizing thermal polyaspartate biopolymers. It generates the majority of its revenues from the export of its products to international markets.
64GF Score
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