LABFF (Laboratorios Farmaceuticos Rovi) Degree of Operating Leverage : 1.38 (As of Mar. 2026)

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

LABFF Laboratorios Farmaceuticos Rovi SA LABFF
89 GF Score
Price $90.61
GF Value $86.21
! 1 Warning Sign
View Full Analysis

What is Laboratorios Farmaceuticos Rovi Degree of Operating Leverage?

Laboratorios Farmaceuticos Rovi LABFF 89 Degree of Operating Leverage is 1.38 as of Mar. 2026. GuruFocus rates LABFF with a GF Score™ of 89/100 and a GF Value™ of $86.21. The stock has 1 warning sign investors should review. Among 936 Drug Manufacturers companies, Laboratorios Farmaceuticos Rovi ranks worse than 55.34% on this metric.

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Laboratorios Farmaceuticos Rovi's Degree of Operating Leverage for the quarter that ended in Mar. 2026 was 1.38. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Laboratorios Farmaceuticos Rovi's Degree of Operating Leverage or its related term are showing as below:

LABFF's Degree of Operating Leverage is ranked worse than
55.34% of 936 companies
in the Drug Manufacturers industry
Industry Median: 1.07 vs LABFF: 1.38

Laboratorios Farmaceuticos Rovi  (OTCPK:LABFF) 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.


Laboratorios Farmaceuticos Rovi Degree of Operating Leverage Related Terms


Laboratorios Farmaceuticos Rovi Degree of Operating Leverage Historical Data

* Premium members only.

The historical data trend for Laboratorios Farmaceuticos Rovi'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.

Laboratorios Farmaceuticos Rovi Degree of Operating Leverage Chart

Laboratorios Farmaceuticos Rovi Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.75 1.58 0.45 1.63 1.22

Laboratorios Farmaceuticos Rovi Quarterly Data
Jun21 Sep21 Dec21 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 Premium Member Only Premium Member Only 10.70 -1.63 2.15 1.22 1.38

LABFF vs ZTS, UTHR, VTRS: Degree of Operating Leverage Comparison

For the Drug Manufacturers - Specialty & Generic subindustry, Laboratorios Farmaceuticos Rovi'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.


Laboratorios Farmaceuticos Rovi Degree of Operating Leverage vs Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Laboratorios Farmaceuticos Rovi's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Laboratorios Farmaceuticos Rovi's Degree of Operating Leverage falls into.


LABFF
89GF Score
Laboratorios Farmaceuticos Rovi SA LABFF
Degree of Operating Leverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Laboratorios Farmaceuticos Rovi Degree of Operating Leverage Calculation

Laboratorios Farmaceuticos Rovi'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
=( 204.943 (Mar. 2026) / 295.102 (Mar. 2025) - 1 )/( 863.285 (Mar. 2026) / 1075.239 (Mar. 2025) - 1 )
=-0.3055/-0.1971
=1.55***

* 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 1.38 mean?
Laboratorios Farmaceuticos Rovi (LABFF) has a Degree of Operating Leverage of 1.38 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 Laboratorios Farmaceuticos Rovi and its competitors. According to the industry distribution chart, Laboratorios Farmaceuticos Rovi ranks #518 out of 936 companies in the Drug Manufacturers industry, placing it in the top 55.3%.
Is Laboratorios Farmaceuticos Rovi's Degree of Operating Leverage too high?
Laboratorios Farmaceuticos Rovi's current Degree of Operating Leverage is 1.38. The Drug Manufacturers industry median Degree of Operating Leverage is 1.07. Laboratorios Farmaceuticos Rovi's value of 1.38 is 29% above this industry median. Based on the distribution chart, Laboratorios Farmaceuticos Rovi ranks #518 out of 936 companies in the Drug Manufacturers industry, which is below the industry midpoint. Overall, Laboratorios Farmaceuticos Rovi has a GF Score™ of 89/100, reflecting its overall financial health beyond just this single metric.
How does Laboratorios Farmaceuticos Rovi's Degree of Operating Leverage compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Laboratorios Farmaceuticos Rovi ranks #518 out of 936 companies for Degree of Operating Leverage. This places Laboratorios Farmaceuticos Rovi in the lower half of its industry. The industry median Degree of Operating Leverage is 1.07. Laboratorios Farmaceuticos Rovi's value of 1.38 is 29% 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 Drug Manufacturers company?
The median Degree of Operating Leverage among Drug Manufacturers companies is 1.07, based on 936 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. Laboratorios Farmaceuticos Rovi's current Degree of Operating Leverage of 1.38 is 29% 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 Laboratorios Farmaceuticos Rovi and its competitors. For the Drug Manufacturers industry, the median Degree of Operating Leverage is 1.07 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Laboratorios Farmaceuticos Rovi's current Degree of Operating Leverage is 1.38. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Laboratorios Farmaceuticos Rovi stock overvalued right now?
Laboratorios Farmaceuticos Rovi (LABFF) has a current Degree of Operating Leverage of 1.38. The stock's GF Value™ is $86.21, compared to a current price of $90.61 — trading 5.1% above its estimated fair value. The current Degree of Operating Leverage is 1.38 and 29% above the Drug Manufacturers industry median of 1.07. Laboratorios Farmaceuticos Rovi's overall GF Score™ is 89/100 with 1 warning sign 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 Laboratorios Farmaceuticos Rovi (LABFF), the current Degree of Operating Leverage is 1.38 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 Laboratorios Farmaceuticos Rovi (LABFF) Overvalued in 2026?

Based on GuruFocus' analysis, Laboratorios Farmaceuticos Rovi stock appears to be overvalued. The current stock price of $90.61 is trading 5.1% above its estimated GF Value™ of $86.21.

Key valuation signals for LABFF:

  • Degree of Operating Leverage: 1.38
  • GF Value™: $86.21 vs. price of $90.61 (5.1% above fair value)
  • GF Score™: 89/100 with 1 warning sign
  • Industry Position: 29% above the Drug Manufacturers median (#518 of 936)

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


Laboratorios Farmaceuticos Rovi Business Description

Address Julian Camarillo, 35, Madrid, ESP, 28037
Laboratorios Farmaceuticos Rovi SA is a biotechnology company engaged in the research, development, manufacturing, and marketing of small molecule and specialty biologic drugs. The company has a diversified portfolio of products that it markets in Spain through its specialized sales force of specialist physicians, hospitals and pharmacies. Laboratorios' research and development pipeline is focused on the expansion of applications, indications, and alternative mechanisms of action for heparin-derived products. The company aims to obtain new pharmaceutical products that enable the regular administration of formulations that are administered daily in chronic and prolonged treatments. Its two segments are Manufacturing and Marketing.
89GF Score

Get the complete analysis for LABFF

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

$90.61
Price
$86.21
GF Value