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Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue.
Petronas Chemicals Group Bhd's Degree of Operating Leverage for the quarter that ended in Jun. 2026 was 43.87. The higher Degree of Operating Leverage, the higher operating risk the company will take.
The industry rank for Petronas Chemicals Group Bhd's Degree of Operating Leverage or its related term are showing as below:
PECGF's Degree of Operating Leverage is ranked worse than 93.83% of 1573
companies
in the Chemicals industry
Industry Median: 1.29
vs PECGF: 43.87
Petronas Chemicals Group Bhd (OTCPK:PECGF) 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.
Petronas Chemicals Group Bhd Degree of Operating Leverage Related Terms
Petronas Chemicals Group Bhd 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.
Petronas Chemicals Group Bhd Degree of Operating Leverage Chart
PECGF vs DOW: Degree of Operating Leverage Comparison
For the Chemicals subindustry, Petronas Chemicals Group Bhd'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.
Petronas Chemicals Group Bhd Degree of Operating Leverage vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Petronas Chemicals Group Bhd's Degree of Operating Leverage distribution charts can be found below:
* The bar in red indicates where Petronas Chemicals Group Bhd'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 43.87 mean?
Petronas Chemicals Group Bhd (PECGF) has a Degree of Operating Leverage of 43.87 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 Petronas Chemicals Group Bhd and its competitors. According to the industry distribution chart, Petronas Chemicals Group Bhd ranks #1476 out of 1573 companies in the Chemicals industry, placing it in the top 93.8%.
Is Petronas Chemicals Group Bhd's Degree of Operating Leverage too high?
Petronas Chemicals Group Bhd's current Degree of Operating Leverage is 43.87. The Chemicals industry median Degree of Operating Leverage is 1.29. Petronas Chemicals Group Bhd's value of 43.87 is 3300.8% above this industry median. Based on the distribution chart, Petronas Chemicals Group Bhd ranks #1476 out of 1573 companies in the Chemicals industry, which is in the bottom quartile relative to peers. Overall, Petronas Chemicals Group Bhd has a GF Score™ of 80/100, reflecting its overall financial health beyond just this single metric.
How does Petronas Chemicals Group Bhd's Degree of Operating Leverage compare to DOW?
According to the Chemicals industry distribution chart, Petronas Chemicals Group Bhd ranks #1476 out of 1573 companies for Degree of Operating Leverage. This places Petronas Chemicals Group Bhd in the lower half of its industry. The industry median Degree of Operating Leverage is 1.29. Petronas Chemicals Group Bhd's value of 43.87 is 3300.8% 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 Chemicals company?
The median Degree of Operating Leverage among Chemicals companies is 1.29, based on 1,573 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. Petronas Chemicals Group Bhd's current Degree of Operating Leverage of 43.87 is 3300.8% 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 Petronas Chemicals Group Bhd and its competitors. For the Chemicals industry, the median Degree of Operating Leverage is 1.29 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Petronas Chemicals Group Bhd's current Degree of Operating Leverage is 43.87. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Petronas Chemicals Group Bhd stock overvalued right now?
Petronas Chemicals Group Bhd (PECGF) has a current Degree of Operating Leverage of 43.87. The stock's GF Value™ is $0.90, compared to a current price of $0.86 — trading 4.9% below its estimated fair value. The current Degree of Operating Leverage is 43.87 and 3300.8% above the Chemicals industry median of 1.29. Petronas Chemicals Group Bhd's overall GF Score™ is 80/100 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 Petronas Chemicals Group Bhd (PECGF), the current Degree of Operating Leverage is 43.87 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 Petronas Chemicals Group Bhd (PECGF) Overvalued in 2026?
Based on GuruFocus' analysis, Petronas Chemicals Group Bhd stock appears to be undervalued.
The current stock price of $0.86 is trading 4.9% below its estimated GF Value™ of $0.90.
Key valuation signals for PECGF:
Degree of Operating Leverage: 43.87
GF Value™: $0.90 vs. price of $0.86 (4.9% below fair value)
Industry Position: 3300.8% above the Chemicals median (#1476 of 1573)
No single metric tells the full story. See the PECGF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Petronas Chemicals Group Bhd manufactures and sells a variety of petrochemicals. The firm organizes itself into three segments based on product type: Olefins and Derivatives; Fertilizers and Methanol, Specialty Chemicals and others. The Olefins and Derivatives segment, which generates the majority of revenue, is engaged in manufacturing and marketing of a wide range of olefin and polymer products, such as Ethylene, Propylene, and Butyl Acetate among others, which are used as a basic feedstock for other products, to intermediate products including basic and high performance chemicals. The majority of the revenue comes from Malaysia and the rest from China, Thailand, Indonesia, Sweden and other regions.
80GF Score
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