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.
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.
Mercury NZMGHTF +8.44%85 Degree of Operating Leverage is -46.51 as of Jun. 2026. GuruFocus rates MGHTF with a GF Score™ of 85/100 and a GF Value™ of $4.04. The stock has 8 warning signs investors should review. Among 412 Utilities - Independent Power Producers companies, Mercury NZ ranks better than 96.6% on this metric.
Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue.
Mercury NZ's Degree of Operating Leverage for the quarter that ended in Jun. 2026 was -46.51. The higher Degree of Operating Leverage, the higher operating risk the company will take.
The industry rank for Mercury NZ's Degree of Operating Leverage or its related term are showing as below:
MGHTF's Degree of Operating Leverage is ranked better than 96.6% of 412
companies
in the Utilities - Independent Power Producers industry
Industry Median: 0.805
vs MGHTF: -46.51
Mercury NZ (OTCPK:MGHTF) 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.
Mercury NZ Degree of Operating Leverage Related Terms
Mercury NZ Degree of Operating Leverage Historical Data
* Premium members only.
The historical data trend for Mercury NZ'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.
Mercury NZ Degree of Operating Leverage Competitor Comparison
For the Utilities - Renewable subindustry, Mercury NZ'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.
Mercury NZ Degree of Operating Leverage vs Utilities - Independent Power Producers Industry
For the Utilities - Independent Power Producers industry and Utilities sector, Mercury NZ's Degree of Operating Leverage distribution charts can be found below:
* The bar in red indicates where Mercury NZ'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 -46.51 mean?
Mercury NZ (MGHTF) has a Degree of Operating Leverage of -46.51 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 Mercury NZ and its competitors. According to the industry distribution chart, Mercury NZ ranks #14 out of 412 companies in the Utilities - Independent Power Producers industry, placing it in the top 3.4%.
Is Mercury NZ's Degree of Operating Leverage too high?
Mercury NZ's current Degree of Operating Leverage is -46.51. Based on the distribution chart, Mercury NZ ranks #14 out of 412 companies in the Utilities - Independent Power Producers industry, which is in the top quartile — a strong position relative to peers. Overall, Mercury NZ has a GF Score™ of 85/100, reflecting its overall financial health beyond just this single metric.
How does Mercury NZ's Degree of Operating Leverage compare to competitors?
According to the Utilities - Independent Power Producers industry distribution chart, Mercury NZ ranks #14 out of 412 companies for Degree of Operating Leverage. This places Mercury NZ in the top 3% of its industry — outperforming the majority of peers. The industry median Degree of Operating Leverage is 0.81. 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 an Utilities - Independent Power Producers company?
The median Degree of Operating Leverage among Utilities - Independent Power Producers companies is 0.81, based on 412 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. 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 Mercury NZ and its competitors. For the Utilities - Independent Power Producers industry, the median Degree of Operating Leverage is 0.81 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Mercury NZ's current Degree of Operating Leverage is -46.51. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Mercury NZ stock overvalued right now?
Mercury NZ (MGHTF) has a current Degree of Operating Leverage of -46.51. The stock's GF Value™ is $4.04, compared to a current price of $4.37 — trading 8.2% above its estimated fair value. The current Degree of Operating Leverage is -46.51. Mercury NZ's overall GF Score™ is 85/100 with 8 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 Mercury NZ (MGHTF), the current Degree of Operating Leverage is -46.51 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 Mercury NZ (MGHTF) Overvalued in 2026?
Based on GuruFocus' analysis, Mercury NZ stock appears to be overvalued.
The current stock price of $4.37 is trading 8.2% above its estimated GF Value™ of $4.04.
Key valuation signals for MGHTF:
Degree of Operating Leverage: -46.51
GF Value™: $4.04 vs. price of $4.37 (8.2% above fair value)
No single metric tells the full story. See the MGHTF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Mercury NZ (formerly Mighty River Power) generates more than 15% of New Zealand's electricity and is one of the four major electricity generators and suppliers in the country. All electricity is generated from renewable sources, which makes it one of the lowest-cost providers of electricity. The company operates nine hydro stations and five geothermal power plants in the North Island and some wind farms. Mercury sells electricity to residential and commercial customers and has the largest share of the key Auckland market.
85GF Score
Get the complete analysis for MGHTF
Degree of Operating Leverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
MGHTF has been successfully added to your 
