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Afrocentric InvestmentJSE:ACT 51 Degree of Operating Leverage is 17.45 as of Jun. 2026. GuruFocus rates JSE:ACT with a GF Score™ of 51/100 and a GF Value™ of R1.79 (Possible Value Trap). The stock has 5 warning signs investors should review. Among 646 Healthcare Providers & Services companies, Afrocentric Investment ranks worse than 90.71% on this metric.
Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue.
Afrocentric Investment's Degree of Operating Leverage for the quarter that ended in Jun. 2026 was 17.45. The higher Degree of Operating Leverage, the higher operating risk the company will take.
The industry rank for Afrocentric Investment's Degree of Operating Leverage or its related term are showing as below:
JSE:ACT's Degree of Operating Leverage is ranked worse than 90.71% of 646
companies
in the Healthcare Providers & Services industry
Industry Median: 0.92
vs JSE:ACT: 17.45
Afrocentric Investment (JSE:ACT) 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.
Afrocentric Investment Degree of Operating Leverage Related Terms
Afrocentric Investment Degree of Operating Leverage Historical Data
* Premium members only.
The historical data trend for Afrocentric Investment'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.
Afrocentric Investment Degree of Operating Leverage Chart
JSE:ACT vs HCA, THC, EHC: Degree of Operating Leverage Comparison
For the Medical Care Facilities subindustry, Afrocentric Investment'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.
Afrocentric Investment Degree of Operating Leverage vs Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, Afrocentric Investment's Degree of Operating Leverage distribution charts can be found below:
* The bar in red indicates where Afrocentric Investment'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 17.45 mean?
Afrocentric Investment (JSE:ACT) has a Degree of Operating Leverage of 17.45 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 Afrocentric Investment and its competitors. According to the industry distribution chart, Afrocentric Investment ranks #586 out of 646 companies in the Healthcare Providers & Services industry, placing it in the top 90.7%.
Is Afrocentric Investment's Degree of Operating Leverage too high?
Afrocentric Investment's current Degree of Operating Leverage is 17.45. The Healthcare Providers & Services industry median Degree of Operating Leverage is 0.92. Afrocentric Investment's value of 17.45 is 1796.7% above this industry median. Based on the distribution chart, Afrocentric Investment ranks #586 out of 646 companies in the Healthcare Providers & Services industry, which is in the bottom quartile relative to peers. Overall, Afrocentric Investment has a GF Score™ of 51/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Afrocentric Investment's Degree of Operating Leverage compare to HCA and THC?
According to the Healthcare Providers & Services industry distribution chart, Afrocentric Investment ranks #586 out of 646 companies for Degree of Operating Leverage. This places Afrocentric Investment in the lower half of its industry. The industry median Degree of Operating Leverage is 0.92. Afrocentric Investment's value of 17.45 is 1796.7% 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 Healthcare Providers & Services company?
The median Degree of Operating Leverage among Healthcare Providers & Services companies is 0.92, based on 646 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. Afrocentric Investment's current Degree of Operating Leverage of 17.45 is 1796.7% 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 Afrocentric Investment and its competitors. For the Healthcare Providers & Services industry, the median Degree of Operating Leverage is 0.92 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Afrocentric Investment's current Degree of Operating Leverage is 17.45. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Afrocentric Investment stock overvalued right now?
Based on GuruFocus' analysis, Afrocentric Investment (JSE:ACT) is currently considered Possible Value Trap. The stock's GF Value™ is R1.79, compared to a current price of R0.63 — trading 64.8% below its estimated fair value. The current Degree of Operating Leverage is 17.45 and 1796.7% above the Healthcare Providers & Services industry median of 0.92. Afrocentric Investment's overall GF Score™ is 51/100 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 Afrocentric Investment (JSE:ACT), the current Degree of Operating Leverage is 17.45 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 Afrocentric Investment (JSE:ACT) Overvalued in 2026?
Based on GuruFocus' analysis, Afrocentric Investment stock appears to be undervalued.
The current stock price of R0.63 is trading 64.8% below its estimated GF Value™ of R1.79.
GuruFocus considers Afrocentric Investment to be Possible Value Trap.
Key valuation signals for JSE:ACT:
Degree of Operating Leverage: 17.45
GF Value™: R1.79 vs. price of R0.63 (64.8% below fair value)
Industry Position: 1796.7% above the Healthcare Providers & Services median (#586 of 646)
No single metric tells the full story. See the JSE:ACT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Afrocentric Investment Corp Ltd is an investment holding company providing specialised services and products to the public and private healthcare sectors. It focuses on making quality healthcare accessible and affordable to members and beneficiaries, with the principal objective of ensuring the delivery of efficient health management services and the distribution of quality products. Its business segments include Healthcare SA, comprising medical scheme administration and health risk management services; Healthcare Retail, comprising pharmaceutical sales and services; Healthcare Africa, comprising healthcare services outside South Africa in Namibia and Mauritius; and IT-related services predominantly within South Africa. It operates across South Africa, Botswana, Mauritius, and Namibia.
51GF Score
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