MMTHF (Momentum Group) Degree of Operating Leverage : 0.61 (As of Dec. 2025)

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.

MMTHF Momentum Group Ltd MMTHF
77 GF Score
Price $2.15
GF Value $2.77
! 3 Warning Signs
View Full Analysis

What is Momentum Group Degree of Operating Leverage?

Momentum Group MMTHF +207.14% 77 Degree of Operating Leverage is 0.61 as of Dec. 2025. GuruFocus rates MMTHF with a GF Score™ of 77/100 and a GF Value™ of $2.77. The stock has 3 warning signs investors should review. Among 357 Insurance companies, Momentum Group ranks better than 56.86% on this metric.

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Momentum Group's Degree of Operating Leverage for the quarter that ended in Dec. 2025 was 0.61. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Momentum Group's Degree of Operating Leverage or its related term are showing as below:

MMTHF's Degree of Operating Leverage is ranked better than
56.86% of 357 companies
in the Insurance industry
Industry Median: 0.97 vs MMTHF: 0.61

Momentum Group  (OTCPK:MMTHF) 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.


Momentum Group Degree of Operating Leverage Related Terms


Momentum Group Degree of Operating Leverage Historical Data

* Premium members only.

The historical data trend for Momentum Group'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.

Momentum Group Degree of Operating Leverage Chart

Momentum Group Annual Data
Trend Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24 Jun25
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.19 -3.41 0.08 0.11 1.03

Momentum Group Semi-Annual Data
Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
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 -0.12 0.11 0.44 1.03 0.61

MMTHF vs BRK.A, AIG, HIG: Degree of Operating Leverage Comparison

For the Insurance - Diversified subindustry, Momentum Group'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.


Momentum Group Degree of Operating Leverage vs Insurance Industry

For the Insurance industry and Financial Services sector, Momentum Group's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Momentum Group's Degree of Operating Leverage falls into.


MMTHF
77GF Score
Momentum Group Ltd MMTHF
Degree of Operating Leverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Momentum Group Degree of Operating Leverage Calculation

Momentum Group's Degree of Operating Leverage for the quarter that ended in Dec. 2025 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 824.972 (Dec. 2025) / 657.022 (Dec. 2024) - 1 )/( 10212.528 (Dec. 2025) / 7370.002 (Dec. 2024) - 1 )
=0.2556/0.3857
=0.66***

* 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 0.61 mean?
Momentum Group (MMTHF) has a Degree of Operating Leverage of 0.61 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 Momentum Group and its competitors. According to the industry distribution chart, Momentum Group ranks #154 out of 357 companies in the Insurance industry, placing it in the top 43.1%.
Is Momentum Group's Degree of Operating Leverage too high?
Momentum Group's current Degree of Operating Leverage is 0.61. The Insurance industry median Degree of Operating Leverage is 0.97. Momentum Group's value of 0.61 is 37.1% below this industry median. Based on the distribution chart, Momentum Group ranks #154 out of 357 companies in the Insurance industry, which is above the industry midpoint. Overall, Momentum Group has a GF Score™ of 77/100, reflecting its overall financial health beyond just this single metric.
How does Momentum Group's Degree of Operating Leverage compare to BRK.A and AIG?
According to the Insurance industry distribution chart, Momentum Group ranks #154 out of 357 companies for Degree of Operating Leverage. This puts Momentum Group in the upper half of its industry. The industry median Degree of Operating Leverage is 0.97. Momentum Group's value of 0.61 is 37.1% below 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 Insurance company?
The median Degree of Operating Leverage among Insurance companies is 0.97, based on 357 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. Momentum Group's current Degree of Operating Leverage of 0.61 is 37.1% below 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 Momentum Group and its competitors. For the Insurance industry, the median Degree of Operating Leverage is 0.97 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Momentum Group's current Degree of Operating Leverage is 0.61. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Momentum Group stock overvalued right now?
Momentum Group (MMTHF) has a current Degree of Operating Leverage of 0.61. The stock's GF Value™ is $2.77, compared to a current price of $2.15 — trading 22.4% below its estimated fair value. The current Degree of Operating Leverage is 0.61 and 37.1% below the Insurance industry median of 0.97. Momentum Group's overall GF Score™ is 77/100 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 Momentum Group (MMTHF), the current Degree of Operating Leverage is 0.61 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 Momentum Group (MMTHF) Overvalued in 2026?

Based on GuruFocus' analysis, Momentum Group stock appears to be undervalued. The current stock price of $2.15 is trading 22.4% below its estimated GF Value™ of $2.77.

Key valuation signals for MMTHF:

  • Degree of Operating Leverage: 0.61
  • GF Value™: $2.77 vs. price of $2.15 (22.4% below fair value)
  • GF Score™: 77/100 with 3 warning signs
  • Industry Position: 37.1% below the Insurance median (#154 of 357)

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


Momentum Group Business Description

Address 268 West Avenue, Centurion, GT, ZAF, 0157
Momentum Group Ltd is engaged in life insurance and integrated financial services sectors. It operates in South Africa, the UK, Guernsey, India, Botswana, Ghana, Lesotho, Mozambique, and Namibia. The company operates through brands like Momentum, Metropolitan, Guardrisk, and Eris Properties.
77GF Score

Get the complete analysis for MMTHF

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

$2.15
Price
$2.77
GF Value