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Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue.
Hisense Home Appliances Group Co's Degree of Operating Leverage for the quarter that ended in Jun. 2026 was 1.55. The higher Degree of Operating Leverage, the higher operating risk the company will take.
HISEF's Degree of Operating Leverage is ranked better than 50.12% of 423
companies
in the Furnishings, Fixtures & Appliances industry
Industry Median: 1.58
vs HISEF: 1.55
Hisense Home Appliances Group Co (OTCPK:HISEF) 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.
Hisense Home Appliances Group Co Degree of Operating Leverage Related Terms
Hisense Home Appliances Group 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.
Hisense Home Appliances Group Co Degree of Operating Leverage Chart
HISEF vs SN, SGI, MHK: Degree of Operating Leverage Comparison
For the Furnishings, Fixtures & Appliances subindustry, Hisense Home Appliances Group 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.
Hisense Home Appliances Group Co Degree of Operating Leverage vs Furnishings, Fixtures & Appliances Industry
For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, Hisense Home Appliances Group Co's Degree of Operating Leverage distribution charts can be found below:
* The bar in red indicates where Hisense Home Appliances Group 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 1.55 mean?
Hisense Home Appliances Group Co (HISEF) has a Degree of Operating Leverage of 1.55 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 Hisense Home Appliances Group Co and its competitors. According to the industry distribution chart, Hisense Home Appliances Group Co ranks #211 out of 423 companies in the Furnishings, Fixtures & Appliances industry, placing it in the top 49.9%.
Is Hisense Home Appliances Group Co's Degree of Operating Leverage too high?
Hisense Home Appliances Group Co's current Degree of Operating Leverage is 1.55. The Furnishings, Fixtures & Appliances industry median Degree of Operating Leverage is 1.58. Hisense Home Appliances Group Co's value of 1.55 is 1.9% below this industry median. Based on the distribution chart, Hisense Home Appliances Group Co ranks #211 out of 423 companies in the Furnishings, Fixtures & Appliances industry, which is above the industry midpoint. Overall, Hisense Home Appliances Group Co has a GF Score™ of 93/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Hisense Home Appliances Group Co's Degree of Operating Leverage compare to SN and SGI?
According to the Furnishings, Fixtures & Appliances industry distribution chart, Hisense Home Appliances Group Co ranks #211 out of 423 companies for Degree of Operating Leverage. This puts Hisense Home Appliances Group Co in the upper half of its industry. The industry median Degree of Operating Leverage is 1.58. Hisense Home Appliances Group Co's value of 1.55 is 1.9% 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 Furnishings, Fixtures & Appliances company?
The median Degree of Operating Leverage among Furnishings, Fixtures & Appliances companies is 1.58, based on 423 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. Hisense Home Appliances Group Co's current Degree of Operating Leverage of 1.55 is 1.9% 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 Hisense Home Appliances Group Co and its competitors. For the Furnishings, Fixtures & Appliances industry, the median Degree of Operating Leverage is 1.58 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hisense Home Appliances Group Co's current Degree of Operating Leverage is 1.55. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hisense Home Appliances Group Co stock overvalued right now?
Based on GuruFocus' analysis, Hisense Home Appliances Group Co (HISEF) is currently considered Fairly Valued. The stock's GF Value™ is $2.95, compared to a current price of $2.80 — trading 5.1% below its estimated fair value. The current Degree of Operating Leverage is 1.55 and 1.9% below the Furnishings, Fixtures & Appliances industry median of 1.58. Hisense Home Appliances Group Co's overall GF Score™ is 93/100 with 9 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 Hisense Home Appliances Group Co (HISEF), the current Degree of Operating Leverage is 1.55 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 Hisense Home Appliances Group Co (HISEF) Overvalued in 2026?
Based on GuruFocus' analysis, Hisense Home Appliances Group Co stock appears to be undervalued.
The current stock price of $2.80 is trading 5.1% below its estimated GF Value™ of $2.95.
GuruFocus considers Hisense Home Appliances Group Co to be Fairly Valued.
Key valuation signals for HISEF:
Degree of Operating Leverage: 1.55
GF Value™: $2.95 vs. price of $2.80 (5.1% below fair value)
Industry Position: 1.9% below the Furnishings, Fixtures & Appliances median (#211 of 423)
No single metric tells the full story. See the HISEF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hisense Home Appliances Group Co Ltd is a manufacturer of white household electrical appliances in the People's Republic of China, with eight brand names, namely Hisense, Ronshen, KELON, HITACHI, YORK, Gorenje, ASKO, and SANDEN. The company produces refrigerators, air-conditioners, freezers, washing machines, and Kitchen electrical appliances. The businesses of the Company are set out as follows: HVAC Business Work; Refrigerator and Washing Machine Business Work; Automotive Air Conditioner Compressor and Integrated Thermal Management System Business Work; Smart Home Business Work; Overseas Markets for Home Appliances Business Work and Implementing the Manufacturing Work. The majority of the its revenue is generated from China.
93GF 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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