Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
H2O RetailingHTOCF 60 Degree of Operating Leverage is 133.65 as of Mar. 2026. GuruFocus rates HTOCF with a GF Score™ of 60/100 and a GF Value™ of $6.92. The stock has 5 warning signs investors should review. Among 307 Retail - Defensive companies, H2O Retailing ranks worse than 99.02% on this metric.
Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue.
H2O Retailing's Degree of Operating Leverage for the quarter that ended in Mar. 2026 was 133.65. The higher Degree of Operating Leverage, the higher operating risk the company will take.
The industry rank for H2O Retailing's Degree of Operating Leverage or its related term are showing as below:
HTOCF's Degree of Operating Leverage is ranked worse than 99.02% of 307
companies
in the Retail - Defensive industry
Industry Median: 0.75
vs HTOCF: 133.65
H2O Retailing (OTCPK:HTOCF) 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.
H2O Retailing Degree of Operating Leverage Related Terms
H2O Retailing Degree of Operating Leverage Historical Data
* Premium members only.
The historical data trend for H2O Retailing'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.
HTOCF vs KR: Degree of Operating Leverage Comparison
For the Grocery Stores subindustry, H2O Retailing'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.
H2O Retailing Degree of Operating Leverage vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, H2O Retailing's Degree of Operating Leverage distribution charts can be found below:
* The bar in red indicates where H2O Retailing'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 133.65 mean?
H2O Retailing (HTOCF) has a Degree of Operating Leverage of 133.65 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 H2O Retailing and its competitors. According to the industry distribution chart, H2O Retailing ranks #304 out of 307 companies in the Retail - Defensive industry, placing it in the top 99%.
Is H2O Retailing's Degree of Operating Leverage too high?
H2O Retailing's current Degree of Operating Leverage is 133.65. The Retail - Defensive industry median Degree of Operating Leverage is 0.75. H2O Retailing's value of 133.65 is 17720% above this industry median. Based on the distribution chart, H2O Retailing ranks #304 out of 307 companies in the Retail - Defensive industry, which is in the bottom quartile relative to peers. Overall, H2O Retailing has a GF Score™ of 60/100, reflecting its overall financial health beyond just this single metric.
How does H2O Retailing's Degree of Operating Leverage compare to KR?
According to the Retail - Defensive industry distribution chart, H2O Retailing ranks #304 out of 307 companies for Degree of Operating Leverage. This places H2O Retailing in the lower half of its industry. The industry median Degree of Operating Leverage is 0.75. H2O Retailing's value of 133.65 is 17720% 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 - Defensive company?
The median Degree of Operating Leverage among Retail - Defensive companies is 0.75, based on 307 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. H2O Retailing's current Degree of Operating Leverage of 133.65 is 17720% 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 H2O Retailing and its competitors. For the Retail - Defensive industry, the median Degree of Operating Leverage is 0.75 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. H2O Retailing's current Degree of Operating Leverage is 133.65. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is H2O Retailing stock overvalued right now?
H2O Retailing (HTOCF) has a current Degree of Operating Leverage of 133.65. The stock's GF Value™ is $6.92, compared to a current price of $10.00 — trading 44.5% above its estimated fair value. The current Degree of Operating Leverage is 133.65 and 17720% above the Retail - Defensive industry median of 0.75. H2O Retailing's overall GF Score™ is 60/100 with 5 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 H2O Retailing (HTOCF), the current Degree of Operating Leverage is 133.65 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 H2O Retailing (HTOCF) Overvalued in 2026?
Based on GuruFocus' analysis, H2O Retailing stock appears to be overvalued.
The current stock price of $10.00 is trading 44.5% above its estimated GF Value™ of $6.92.
Key valuation signals for HTOCF:
Degree of Operating Leverage: 133.65
GF Value™: $6.92 vs. price of $10.00 (44.5% above fair value)
Industry Position: 17720% above the Retail - Defensive median (#304 of 307)
No single metric tells the full story. See the HTOCF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
H2O Retailing Corp is a Japan-based retailer that provides a broad range of merchandise to meet consumers' needs, from daily needs to special products. The company's core business is the department store business, which includes both the Hankyu and Hanshin department store chains. Superstore business is the company's another major business arm, including the Izumiya and Hankyu Oasis store chains. H2O Retailing also runs a specialty store business, engaged in providing cosmetics, ladies' footwear, and other products and services. In addition to retail businesses, the company operates other businesses as well, such as hotels and restaurants.
60GF Score
Get the complete analysis for HTOCF
Degree of Operating Leverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
HTOCF has been successfully added to your 
