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Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue.
PSG Financial Services's Degree of Operating Leverage for the quarter that ended in Feb. 2026 was 2.58. The higher Degree of Operating Leverage, the higher operating risk the company will take.
The industry rank for PSG Financial Services's Degree of Operating Leverage or its related term are showing as below:
NAM:KFS's Degree of Operating Leverage is ranked worse than 77.24% of 637
companies
in the Asset Management industry
Industry Median: 0.6
vs NAM:KFS: 2.58
PSG Financial Services (NAM:KFS) 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.
PSG Financial Services Degree of Operating Leverage Related Terms
PSG Financial Services Degree of Operating Leverage Historical Data
* Premium members only.
The historical data trend for PSG Financial Services'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.
PSG Financial Services Degree of Operating Leverage Chart
NAM:KFS vs BLK, BX, KKR: Degree of Operating Leverage Comparison
For the Asset Management subindustry, PSG Financial Services'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.
PSG Financial Services Degree of Operating Leverage vs Asset Management Industry
For the Asset Management industry and Financial Services sector, PSG Financial Services's Degree of Operating Leverage distribution charts can be found below:
* The bar in red indicates where PSG Financial Services'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 2.58 mean?
PSG Financial Services (NAM:KFS) has a Degree of Operating Leverage of 2.58 as of Feb. 2026. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for PSG Financial Services and its competitors. According to the industry distribution chart, PSG Financial Services ranks #492 out of 637 companies in the Asset Management industry, placing it in the top 77.2%.
Is PSG Financial Services' Degree of Operating Leverage too high?
PSG Financial Services' current Degree of Operating Leverage is 2.58. The Asset Management industry median Degree of Operating Leverage is 0.60. PSG Financial Services' value of 2.58 is 330% above this industry median. Based on the distribution chart, PSG Financial Services ranks #492 out of 637 companies in the Asset Management industry, which is in the bottom quartile relative to peers. Overall, PSG Financial Services has a GF Score™ of 81/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does PSG Financial Services' Degree of Operating Leverage compare to BLK and BX?
According to the Asset Management industry distribution chart, PSG Financial Services ranks #492 out of 637 companies for Degree of Operating Leverage. This places PSG Financial Services in the lower half of its industry. The industry median Degree of Operating Leverage is 0.60. PSG Financial Services' value of 2.58 is 330% 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 Asset Management company?
The median Degree of Operating Leverage among Asset Management companies is 0.60, based on 637 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. PSG Financial Services's current Degree of Operating Leverage of 2.58 is 330% 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 PSG Financial Services and its competitors. For the Asset Management industry, the median Degree of Operating Leverage is 0.60 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. PSG Financial Services's current Degree of Operating Leverage is 2.58. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is PSG Financial Services stock overvalued right now?
Based on GuruFocus' analysis, PSG Financial Services (NAM:KFS) is currently considered Significantly Overvalued. The stock's GF Value™ is R21.12, compared to a current price of R30.73 — trading 45.5% above its estimated fair value. The current Degree of Operating Leverage is 2.58 and 330% above the Asset Management industry median of 0.60. PSG Financial Services' overall GF Score™ is 81/100 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 PSG Financial Services (NAM:KFS), the current Degree of Operating Leverage is 2.58 as of Feb. 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 PSG Financial Services (NAM:KFS) Overvalued in 2026?
Based on GuruFocus' analysis, PSG Financial Services stock appears to be overvalued.
The current stock price of R30.73 is trading 45.5% above its estimated GF Value™ of R21.12.
GuruFocus considers PSG Financial Services to be Significantly Overvalued.
Key valuation signals for NAM:KFS:
Degree of Operating Leverage: 2.58
GF Value™: R21.12 vs. price of R30.73 (45.5% above fair value)
Industry Position: 330% above the Asset Management median (#492 of 637)
No single metric tells the full story. See the NAM:KFS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
PSG Financial Services Ltd is an independent financial services company. Business is executed through three operating divisions: PSG Wealth, PSG Asset Management, and PSG Insure. PSG Wealth provides the group with nearly half of its income, with PSG Insure outweighing PSG Asset Management. Through the Wealth unit, PSG delivers a comprehensive suite of products to individuals, families, and businesses. Some of the PSG Wealth offerings include investment products, stockbroking, estate and trust services, and many other related products. PSG is structured into three segments which are PSG Wealth, generating income from managed and platform assets; PSG Asset Management, deriving income from assets under management; PSG Insure, earning income from premiums and underwriting.
81GF Score
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