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PPCJSE:PPC +1.93%67 Degree of Operating Leverage is 13.12 as of Mar. 2026. GuruFocus rates JSE:PPC with a GF Score™ of 67/100 and a GF Value™ of R4.63 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 401 Building Materials companies, PPC ranks worse than 84.79% on this metric.
Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue.
PPC's Degree of Operating Leverage for the quarter that ended in Mar. 2026 was 13.12. The higher Degree of Operating Leverage, the higher operating risk the company will take.
The industry rank for PPC's Degree of Operating Leverage or its related term are showing as below:
JSE:PPC's Degree of Operating Leverage is ranked worse than 84.79% of 401
companies
in the Building Materials industry
Industry Median: 1.09
vs JSE:PPC: 13.12
PPC (JSE:PPC) 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.
PPC Degree of Operating Leverage Related Terms
PPC Degree of Operating Leverage Historical Data
* Premium members only.
The historical data trend for PPC'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.
JSE:PPC vs CRH, MLM, VMC: Degree of Operating Leverage Comparison
For the Building Materials subindustry, PPC'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.
PPC Degree of Operating Leverage vs Building Materials Industry
For the Building Materials industry and Basic Materials sector, PPC's Degree of Operating Leverage distribution charts can be found below:
* The bar in red indicates where PPC'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 13.12 mean?
PPC (JSE:PPC) has a Degree of Operating Leverage of 13.12 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 PPC and its competitors. According to the industry distribution chart, PPC ranks #340 out of 401 companies in the Building Materials industry, placing it in the top 84.8%.
Is PPC's Degree of Operating Leverage too high?
PPC's current Degree of Operating Leverage is 13.12. The Building Materials industry median Degree of Operating Leverage is 1.09. PPC's value of 13.12 is 1103.7% above this industry median. Based on the distribution chart, PPC ranks #340 out of 401 companies in the Building Materials industry, which is in the bottom quartile relative to peers. Overall, PPC has a GF Score™ of 67/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does PPC's Degree of Operating Leverage compare to CRH and MLM?
According to the Building Materials industry distribution chart, PPC ranks #340 out of 401 companies for Degree of Operating Leverage. This places PPC in the lower half of its industry. The industry median Degree of Operating Leverage is 1.09. PPC's value of 13.12 is 1103.7% 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 Building Materials company?
The median Degree of Operating Leverage among Building Materials companies is 1.09, based on 401 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. PPC's current Degree of Operating Leverage of 13.12 is 1103.7% 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 PPC and its competitors. For the Building Materials industry, the median Degree of Operating Leverage is 1.09 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. PPC's current Degree of Operating Leverage is 13.12. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is PPC stock overvalued right now?
Based on GuruFocus' analysis, PPC (JSE:PPC) is currently considered Significantly Overvalued. The stock's GF Value™ is R4.63, compared to a current price of R7.39 — trading 59.6% above its estimated fair value. The current Degree of Operating Leverage is 13.12 and 1103.7% above the Building Materials industry median of 1.09. PPC's overall GF Score™ is 67/100 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 PPC (JSE:PPC), the current Degree of Operating Leverage is 13.12 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 PPC (JSE:PPC) Overvalued in 2026?
Based on GuruFocus' analysis, PPC stock appears to be overvalued.
The current stock price of R7.39 is trading 59.6% above its estimated GF Value™ of R4.63.
GuruFocus considers PPC to be Significantly Overvalued.
Key valuation signals for JSE:PPC:
Degree of Operating Leverage: 13.12
GF Value™: R4.63 vs. price of R7.39 (59.6% above fair value)
Industry Position: 1103.7% above the Building Materials median (#340 of 401)
No single metric tells the full story. See the JSE:PPC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
PPC Ltd is a South Africa-based company that supplies cement and other related products in South Africa and several other African countries. Its production facilities span South Africa, Botswana, Zimbabwe, and Rwanda. The operating segments are South Africa and Botswana Cement, Zimbabwe, Rwanda, Aggregates, ash and readymix, and Group services and others. The company generates the majority of its revenue from the South Africa and Botswana domestic markets, where it marketed its cement products under the brand names OPC, SureRoad, IDM Best Build, Castle, and Spar Build-It. It also distributes cement products in Botswana, Zimbabwe, Mozambique, the Democratic Republic of the Congo, Rwanda, and Ethiopia under the brands OPC, Unicem, Botcem, and Surebuild PMC.
67GF Score
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