ISPR (Ispire Technology) Degree of Operating Leverage : -0.60 (As of Mar. 2026)

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ISPR Ispire Technology Inc ISPR
43 GF Score
Price $1.43
GF Value $3.54
Valuation Possible Value Trap
! 3 Warning Signs
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What is Ispire Technology Degree of Operating Leverage?

Ispire Technology ISPR -3.38% 43 Degree of Operating Leverage is -0.60 as of Mar. 2026. GuruFocus rates ISPR with a GF Score™ of 43/100 and a GF Value™ of $3.54 (Possible Value Trap). The stock has 3 warning signs investors should review. Among 45 Tobacco Products companies, Ispire Technology ranks better than 71.11% on this metric.

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Ispire Technology's Degree of Operating Leverage for the quarter that ended in Mar. 2026 was -0.60. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

ISPR's Degree of Operating Leverage is ranked better than
71.11% of 45 companies
in the Tobacco Products industry
Industry Median: 0.26 vs ISPR: -0.60

Ispire Technology  (NAS:ISPR) 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.


Ispire Technology Degree of Operating Leverage Related Terms


Ispire Technology Degree of Operating Leverage Historical Data

* Premium members only.

The historical data trend for Ispire Technology'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.

Ispire Technology Degree of Operating Leverage Chart

Ispire Technology Annual Data
Trend Jun21 Jun22 Jun23 Jun24 Jun25
Degree of Operating Leverage
0.00 -3.27 11.28 6.70 -10.73

Ispire Technology Quarterly Data
Jun21 Mar22 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 -80.19 -10.73 -4.72 -1.66 -0.60

ISPR vs PYYX, CHUC, HCMC: Degree of Operating Leverage Comparison

For the Tobacco subindustry, Ispire Technology'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.


Ispire Technology Degree of Operating Leverage vs Tobacco Products Industry

For the Tobacco Products industry and Consumer Defensive sector, Ispire Technology's Degree of Operating Leverage distribution charts can be found below:

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


ISPR
43GF Score
Ispire Technology Inc ISPR
Degree of Operating Leverage is just one metric. See GF Score™, valuation, warning signs, and more.
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Ispire Technology Degree of Operating Leverage Calculation

Ispire Technology'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
=( -32.869 (Mar. 2026) / -26.737 (Mar. 2025) - 1 )/( 89.461 (Mar. 2026) / 144.7 (Mar. 2025) - 1 )
=0.2293/-0.3817
=-0.60***

* 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 -0.60 mean?
Ispire Technology (ISPR) has a Degree of Operating Leverage of -0.60 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 Ispire Technology and its competitors. According to the industry distribution chart, Ispire Technology ranks #13 out of 45 companies in the Tobacco Products industry, placing it in the top 28.9%.
Is Ispire Technology's Degree of Operating Leverage too high?
Ispire Technology's current Degree of Operating Leverage is -0.60. Based on the distribution chart, Ispire Technology ranks #13 out of 45 companies in the Tobacco Products industry, which is above the industry midpoint. Overall, Ispire Technology has a GF Score™ of 43/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Ispire Technology's Degree of Operating Leverage compare to PYYX and CHUC?
According to the Tobacco Products industry distribution chart, Ispire Technology ranks #13 out of 45 companies for Degree of Operating Leverage. This puts Ispire Technology in the upper half of its industry. The industry median Degree of Operating Leverage is 0.26. 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 Tobacco Products company?
The median Degree of Operating Leverage among Tobacco Products companies is 0.26, based on 45 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 Ispire Technology and its competitors. For the Tobacco Products industry, the median Degree of Operating Leverage is 0.26 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ispire Technology's current Degree of Operating Leverage is -0.60. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ispire Technology stock overvalued right now?
Based on GuruFocus' analysis, Ispire Technology (ISPR) is currently considered Possible Value Trap. The stock's GF Value™ is $3.54, compared to a current price of $1.43 — trading 59.6% below its estimated fair value. The current Degree of Operating Leverage is -0.60. Ispire Technology's overall GF Score™ is 43/100 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 Ispire Technology (ISPR), the current Degree of Operating Leverage is -0.60 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 Ispire Technology (ISPR) Overvalued in 2026?

Based on GuruFocus' analysis, Ispire Technology stock appears to be undervalued. The current stock price of $1.43 is trading 59.6% below its estimated GF Value™ of $3.54. GuruFocus considers Ispire Technology to be Possible Value Trap.

Key valuation signals for ISPR:

  • Degree of Operating Leverage: -0.60
  • GF Value™: $3.54 vs. price of $1.43 (59.6% below fair value)
  • GF Score™: 43/100 with 3 warning signs

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


Ispire Technology Business Description

Address 19700 Magellan Drive, Los Angeles, CA, USA, 90502
Ispire Technology Inc is engaged in the research and development, design, commercialization, sales, marketing, and distribution of branded e-cigarettes and cannabis vaping products. The company sells its cannabis vaping products in the United States, Europe, Canada, and South Africa. Geographically, the company generates the majority of its revenue from Europe.
43GF Score

Get the complete analysis for ISPR

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

$1.43
Price
$3.54
GF Value