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Frendy Energy SpAMIL:FRE 31 Degree of Operating Leverage is 4.41 as of Dec. 2025. GuruFocus rates MIL:FRE with a GF Score™ of 31/100 and a GF Value™ of €0.22 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 405 Utilities - Independent Power Producers companies, Frendy Energy SpA ranks worse than 78.77% on this metric.
Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue.
Frendy Energy SpA's Degree of Operating Leverage for the quarter that ended in Dec. 2025 was 4.41. The higher Degree of Operating Leverage, the higher operating risk the company will take.
The industry rank for Frendy Energy SpA's Degree of Operating Leverage or its related term are showing as below:
MIL:FRE's Degree of Operating Leverage is ranked worse than 78.77% of 405
companies
in the Utilities - Independent Power Producers industry
Industry Median: 0.96
vs MIL:FRE: 4.41
Frendy Energy SpA (MIL:FRE) 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.
Frendy Energy SpA Degree of Operating Leverage Related Terms
Frendy Energy SpA Degree of Operating Leverage Historical Data
* Premium members only.
The historical data trend for Frendy Energy SpA'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.
Frendy Energy SpA Degree of Operating Leverage Chart
Frendy Energy SpA Degree of Operating Leverage Competitor Comparison
For the Utilities - Renewable subindustry, Frendy Energy SpA'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.
Frendy Energy SpA Degree of Operating Leverage vs Utilities - Independent Power Producers Industry
For the Utilities - Independent Power Producers industry and Utilities sector, Frendy Energy SpA's Degree of Operating Leverage distribution charts can be found below:
* The bar in red indicates where Frendy Energy SpA'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 4.41 mean?
Frendy Energy SpA (MIL:FRE) has a Degree of Operating Leverage of 4.41 as of Dec. 2025. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for Frendy Energy SpA and its competitors. According to the industry distribution chart, Frendy Energy SpA ranks #319 out of 405 companies in the Utilities - Independent Power Producers industry, placing it in the top 78.8%.
Is Frendy Energy SpA's Degree of Operating Leverage too high?
Frendy Energy SpA's current Degree of Operating Leverage is 4.41. The Utilities - Independent Power Producers industry median Degree of Operating Leverage is 0.96. Frendy Energy SpA's value of 4.41 is 359.4% above this industry median. Based on the distribution chart, Frendy Energy SpA ranks #319 out of 405 companies in the Utilities - Independent Power Producers industry, which is in the bottom quartile relative to peers. Overall, Frendy Energy SpA has a GF Score™ of 31/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Frendy Energy SpA's Degree of Operating Leverage compare to competitors?
According to the Utilities - Independent Power Producers industry distribution chart, Frendy Energy SpA ranks #319 out of 405 companies for Degree of Operating Leverage. This places Frendy Energy SpA in the lower half of its industry. The industry median Degree of Operating Leverage is 0.96. Frendy Energy SpA's value of 4.41 is 359.4% 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 an Utilities - Independent Power Producers company?
The median Degree of Operating Leverage among Utilities - Independent Power Producers companies is 0.96, based on 405 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. Frendy Energy SpA's current Degree of Operating Leverage of 4.41 is 359.4% 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 Frendy Energy SpA and its competitors. For the Utilities - Independent Power Producers industry, the median Degree of Operating Leverage is 0.96 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Frendy Energy SpA's current Degree of Operating Leverage is 4.41. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Frendy Energy SpA stock overvalued right now?
Based on GuruFocus' analysis, Frendy Energy SpA (MIL:FRE) is currently considered Modestly Undervalued. The stock's GF Value™ is €0.22, compared to a current price of €0.19 — trading 13.6% below its estimated fair value. The current Degree of Operating Leverage is 4.41 and 359.4% above the Utilities - Independent Power Producers industry median of 0.96. Frendy Energy SpA's overall GF Score™ is 31/100 with 2 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 Frendy Energy SpA (MIL:FRE), the current Degree of Operating Leverage is 4.41 as of Dec. 2025. 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 Frendy Energy SpA (MIL:FRE) Overvalued in 2026?
Based on GuruFocus' analysis, Frendy Energy SpA stock appears to be undervalued.
The current stock price of €0.19 is trading 13.6% below its estimated GF Value™ of €0.22.
GuruFocus considers Frendy Energy SpA to be Modestly Undervalued.
Key valuation signals for MIL:FRE:
Degree of Operating Leverage: 4.41
GF Value™: €0.22 vs. price of €0.19 (13.6% below fair value)
Industry Position: 359.4% above the Utilities - Independent Power Producers median (#319 of 405)
No single metric tells the full story. See the MIL:FRE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Frendy Energy SpA is an Italian company. It is engaged in building and operating mini hydropower plants towards the production and sale of electricity.
31GF Score
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