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Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue.
PT PP London Sumatra Indonesia Tbk's Degree of Operating Leverage for the quarter that ended in Jun. 2026 was 1.98. The higher Degree of Operating Leverage, the higher operating risk the company will take.
ISX:LSIP's Degree of Operating Leverage is ranked worse than 60.43% of 1913
companies
in the Consumer Packaged Goods industry
Industry Median: 1.04
vs ISX:LSIP: 1.98
PT PP London Sumatra Indonesia Tbk (ISX:LSIP) 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.
PT PP London Sumatra Indonesia Tbk Degree of Operating Leverage Related Terms
PT PP London Sumatra Indonesia Tbk 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.
PT PP London Sumatra Indonesia Tbk Degree of Operating Leverage Chart
ISX:LSIP vs ADM, BG, TSN: Degree of Operating Leverage Comparison
For the Farm Products subindustry, PT PP London Sumatra Indonesia Tbk'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.
PT PP London Sumatra Indonesia Tbk Degree of Operating Leverage vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, PT PP London Sumatra Indonesia Tbk's Degree of Operating Leverage distribution charts can be found below:
* The bar in red indicates where PT PP London Sumatra Indonesia Tbk'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 1.98 mean?
PT PP London Sumatra Indonesia Tbk (ISX:LSIP) has a Degree of Operating Leverage of 1.98 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 PT PP London Sumatra Indonesia Tbk and its competitors. According to the industry distribution chart, PT PP London Sumatra Indonesia Tbk ranks #1156 out of 1913 companies in the Consumer Packaged Goods industry, placing it in the top 60.4%.
Is PT PP London Sumatra Indonesia Tbk's Degree of Operating Leverage too high?
PT PP London Sumatra Indonesia Tbk's current Degree of Operating Leverage is 1.98. The Consumer Packaged Goods industry median Degree of Operating Leverage is 1.04. PT PP London Sumatra Indonesia Tbk's value of 1.98 is 90.4% above this industry median. Based on the distribution chart, PT PP London Sumatra Indonesia Tbk ranks #1156 out of 1913 companies in the Consumer Packaged Goods industry, which is below the industry midpoint. Overall, PT PP London Sumatra Indonesia Tbk has a GF Score™ of 93/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does PT PP London Sumatra Indonesia Tbk's Degree of Operating Leverage compare to ADM and BG?
According to the Consumer Packaged Goods industry distribution chart, PT PP London Sumatra Indonesia Tbk ranks #1156 out of 1913 companies for Degree of Operating Leverage. This places PT PP London Sumatra Indonesia Tbk in the lower half of its industry. The industry median Degree of Operating Leverage is 1.04. PT PP London Sumatra Indonesia Tbk's value of 1.98 is 90.4% 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 Consumer Packaged Goods company?
The median Degree of Operating Leverage among Consumer Packaged Goods companies is 1.04, based on 1,913 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. PT PP London Sumatra Indonesia Tbk's current Degree of Operating Leverage of 1.98 is 90.4% 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 PT PP London Sumatra Indonesia Tbk and its competitors. For the Consumer Packaged Goods industry, the median Degree of Operating Leverage is 1.04 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. PT PP London Sumatra Indonesia Tbk's current Degree of Operating Leverage is 1.98. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is PT PP London Sumatra Indonesia Tbk stock overvalued right now?
Based on GuruFocus' analysis, PT PP London Sumatra Indonesia Tbk (ISX:LSIP) is currently considered Fairly Valued. The stock's GF Value™ is Rp1,372.75, compared to a current price of Rp1,415.00 — trading 3.1% above its estimated fair value. The current Degree of Operating Leverage is 1.98 and 90.4% above the Consumer Packaged Goods industry median of 1.04. PT PP London Sumatra Indonesia Tbk's overall GF Score™ is 93/100. 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 PT PP London Sumatra Indonesia Tbk (ISX:LSIP), the current Degree of Operating Leverage is 1.98 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 PT PP London Sumatra Indonesia Tbk (ISX:LSIP) Overvalued in 2026?
Based on GuruFocus' analysis, PT PP London Sumatra Indonesia Tbk stock appears to be overvalued.
The current stock price of Rp1,415.00 is trading 3.1% above its estimated GF Value™ of Rp1,372.75.
GuruFocus considers PT PP London Sumatra Indonesia Tbk to be Fairly Valued.
Key valuation signals for ISX:LSIP:
Degree of Operating Leverage: 1.98
GF Value™: Rp1,372.75 vs. price of Rp1,415.00 (3.1% above fair value)
Industry Position: 90.4% above the Consumer Packaged Goods median (#1156 of 1913)
No single metric tells the full story. See the ISX:LSIP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
PT PP London Sumatra Indonesia Tbk is involved in various stages of the agricultural process, including plant breeding, planting, harvesting, processing, and sales of palm products, rubber, oil palm seeds, cocoa, and tea. It is a producer and distributor of Crude Palm Oil (CPO), palm kernel, palm kernel oil, and related commodities. The company operates through distinct segments, such as Oil Palm Products, Seeds, and others, with a primary focus on the oil palm products segment, which contributes substantially to its revenue stream.
93GF Score
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