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Hertz Global HoldingsHTZ -16.25%63 Degree of Operating Leverage is -40.86 as of Jun. 2026. GuruFocus rates HTZ with a GF Score™ of 63/100 and a GF Value™ of $4.67 (Possible Value Trap). The stock has 8 warning signs investors should review. Among 1,039 Business Services companies, Hertz Global Holdings ranks better than 95.28% on this metric.
Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue.
Hertz Global Holdings's Degree of Operating Leverage for the quarter that ended in Jun. 2026 was -40.86. The higher Degree of Operating Leverage, the higher operating risk the company will take.
The industry rank for Hertz Global Holdings's Degree of Operating Leverage or its related term are showing as below:
HTZ's Degree of Operating Leverage is ranked better than 95.28% of 1039
companies
in the Business Services industry
Industry Median: 1.14
vs HTZ: -40.86
Hertz Global Holdings (NAS:HTZ) 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.
Hertz Global Holdings Degree of Operating Leverage Related Terms
Hertz Global Holdings Degree of Operating Leverage Historical Data
* Premium members only.
The historical data trend for Hertz Global Holdings'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.
Hertz Global Holdings Degree of Operating Leverage Chart
HTZ vs ALTG, AIHS, MWG: Degree of Operating Leverage Comparison
For the Rental & Leasing Services subindustry, Hertz Global Holdings'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.
Hertz Global Holdings Degree of Operating Leverage vs Business Services Industry
For the Business Services industry and Industrials sector, Hertz Global Holdings's Degree of Operating Leverage distribution charts can be found below:
* The bar in red indicates where Hertz Global Holdings'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 -40.86 mean?
Hertz Global Holdings (HTZ) has a Degree of Operating Leverage of -40.86 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 Hertz Global Holdings and its competitors. According to the industry distribution chart, Hertz Global Holdings ranks #49 out of 1039 companies in the Business Services industry, placing it in the top 4.7%.
Is Hertz Global Holdings' Degree of Operating Leverage too high?
Hertz Global Holdings' current Degree of Operating Leverage is -40.86. Based on the distribution chart, Hertz Global Holdings ranks #49 out of 1039 companies in the Business Services industry, which is in the top quartile — a strong position relative to peers. Overall, Hertz Global Holdings has a GF Score™ of 63/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Hertz Global Holdings' Degree of Operating Leverage compare to ALTG and AIHS?
According to the Business Services industry distribution chart, Hertz Global Holdings ranks #49 out of 1039 companies for Degree of Operating Leverage. This places Hertz Global Holdings in the top 5% of its industry — outperforming the majority of peers. The industry median Degree of Operating Leverage is 1.14. 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 Business Services company?
The median Degree of Operating Leverage among Business Services companies is 1.14, based on 1,039 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 Hertz Global Holdings and its competitors. For the Business Services industry, the median Degree of Operating Leverage is 1.14 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hertz Global Holdings's current Degree of Operating Leverage is -40.86. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hertz Global Holdings stock overvalued right now?
Based on GuruFocus' analysis, Hertz Global Holdings (HTZ) is currently considered Possible Value Trap. The stock's GF Value™ is $4.67, compared to a current price of $2.35 — trading 49.8% below its estimated fair value. The current Degree of Operating Leverage is -40.86. Hertz Global Holdings' overall GF Score™ is 63/100 with 8 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 Hertz Global Holdings (HTZ), the current Degree of Operating Leverage is -40.86 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 Hertz Global Holdings (HTZ) Overvalued in 2026?
Based on GuruFocus' analysis, Hertz Global Holdings stock appears to be undervalued.
The current stock price of $2.35 is trading 49.8% below its estimated GF Value™ of $4.67.
GuruFocus considers Hertz Global Holdings to be Possible Value Trap.
Key valuation signals for HTZ:
Degree of Operating Leverage: -40.86
GF Value™: $4.67 vs. price of $2.35 (49.8% below fair value)
No single metric tells the full story. See the HTZ stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hertz Global Holdings Inc is engaged principally in the business of renting vehicles through its Hertz, Dollar and Thrifty brands. The company has two reportable segments: i) Americas RAC: Rental of vehicles, as well as sales of vehicles and value-added services, in the U.S., Canada, Latin America and the Caribbean, ii) International RAC: Rental of vehicles, as well as sales of vehicles and value-added services, in locations other than the U.S., Canada, Latin America and the Caribbean. The company maintains a substantial network of company-operated rental locations, a majority of which are in Europe, and has franchisees and partners that operate rental locations under brands. Geographical markets include North America, Europe, Pacific Asia, Middle East and Africa, and Latin America.
63GF Score
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