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Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue.
Lee & Man Paper Manufacturing's Degree of Operating Leverage for the quarter that ended in Jun. 2026 was 4.24. The higher Degree of Operating Leverage, the higher operating risk the company will take.
The industry rank for Lee & Man Paper Manufacturing's Degree of Operating Leverage or its related term are showing as below:
LMPMF's Degree of Operating Leverage is ranked worse than 66.06% of 277
companies
in the Forest Products industry
Industry Median: 1.07
vs LMPMF: 4.24
Lee & Man Paper Manufacturing (OTCPK:LMPMF) 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.
Lee & Man Paper Manufacturing Degree of Operating Leverage Related Terms
Lee & Man Paper Manufacturing 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.
Lee & Man Paper Manufacturing Degree of Operating Leverage Chart
Lee & Man Paper Manufacturing Degree of Operating Leverage Competitor Comparison
For the Paper & Paper Products subindustry, Lee & Man Paper Manufacturing'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.
Lee & Man Paper Manufacturing Degree of Operating Leverage vs Forest Products Industry
For the Forest Products industry and Basic Materials sector, Lee & Man Paper Manufacturing's Degree of Operating Leverage distribution charts can be found below:
* The bar in red indicates where Lee & Man Paper Manufacturing'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 4.24 mean?
Lee & Man Paper Manufacturing (LMPMF) has a Degree of Operating Leverage of 4.24 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 Lee & Man Paper Manufacturing and its competitors. According to the industry distribution chart, Lee & Man Paper Manufacturing ranks #183 out of 277 companies in the Forest Products industry, placing it in the top 66.1%.
Is Lee & Man Paper Manufacturing's Degree of Operating Leverage too high?
Lee & Man Paper Manufacturing's current Degree of Operating Leverage is 4.24. The Forest Products industry median Degree of Operating Leverage is 1.07. Lee & Man Paper Manufacturing's value of 4.24 is 296.3% above this industry median. Based on the distribution chart, Lee & Man Paper Manufacturing ranks #183 out of 277 companies in the Forest Products industry, which is below the industry midpoint. Overall, Lee & Man Paper Manufacturing has a GF Score™ of 55/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Lee & Man Paper Manufacturing's Degree of Operating Leverage compare to competitors?
According to the Forest Products industry distribution chart, Lee & Man Paper Manufacturing ranks #183 out of 277 companies for Degree of Operating Leverage. This places Lee & Man Paper Manufacturing in the lower half of its industry. The industry median Degree of Operating Leverage is 1.07. Lee & Man Paper Manufacturing's value of 4.24 is 296.3% 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 Forest Products company?
The median Degree of Operating Leverage among Forest Products companies is 1.07, based on 277 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. Lee & Man Paper Manufacturing's current Degree of Operating Leverage of 4.24 is 296.3% 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 Lee & Man Paper Manufacturing and its competitors. For the Forest Products 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. Lee & Man Paper Manufacturing's current Degree of Operating Leverage is 4.24. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lee & Man Paper Manufacturing stock overvalued right now?
Based on GuruFocus' analysis, Lee & Man Paper Manufacturing (LMPMF) is currently considered Significantly Overvalued. The stock's GF Value™ is $0.41, compared to a current price of $0.54 — trading 31.1% above its estimated fair value. The current Degree of Operating Leverage is 4.24 and 296.3% above the Forest Products industry median of 1.07. Lee & Man Paper Manufacturing's overall GF Score™ is 55/100 with 6 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 Lee & Man Paper Manufacturing (LMPMF), the current Degree of Operating Leverage is 4.24 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 Lee & Man Paper Manufacturing (LMPMF) Overvalued in 2026?
Based on GuruFocus' analysis, Lee & Man Paper Manufacturing stock appears to be overvalued.
The current stock price of $0.54 is trading 31.1% above its estimated GF Value™ of $0.41.
GuruFocus considers Lee & Man Paper Manufacturing to be Significantly Overvalued.
Key valuation signals for LMPMF:
Degree of Operating Leverage: 4.24
GF Value™: $0.41 vs. price of $0.54 (31.1% above fair value)
Industry Position: 296.3% above the Forest Products median (#183 of 277)
No single metric tells the full story. See the LMPMF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Lee & Man Paper Manufacturing Ltd is an investment holding company engaged in the manufacturing and trading of paper and pulp. Its segments are Packaging Paper, Pulp, and Tissue paper. The majority of the revenue is generated from the packaging paper segment that covers the production of kraft liner board, test liner board, coated duplex board, white top liner board, and strength corrugating medium. Its products include Wood pulp products, Boxboard paper products, Pink Gray Card Products, and Toilet Paper Products. The company generates maximum revenue from PRC, and also has its presence in Malaysia; Vietnam; and Hong Kong, Macau and others.
55GF Score
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