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Aboitiz PowerPHS:AP +0.45%86 Degree of Operating Leverage is -44.70 as of Dec. 2025. GuruFocus rates PHS:AP with a GF Score™ of 86/100 and a GF Value™ of ₱38.25 (Modestly Overvalued). The stock has 10 warning signs investors should review. Among 493 Utilities - Regulated companies, Aboitiz Power ranks better than 97.97% on this metric.
Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue.
Aboitiz Power's Degree of Operating Leverage for the quarter that ended in Dec. 2025 was -44.70. The higher Degree of Operating Leverage, the higher operating risk the company will take.
The industry rank for Aboitiz Power's Degree of Operating Leverage or its related term are showing as below:
PHS:AP's Degree of Operating Leverage is ranked better than 97.97% of 493
companies
in the Utilities - Regulated industry
Industry Median: 1.02
vs PHS:AP: -44.70
Aboitiz Power (PHS:AP) 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.
Aboitiz Power Degree of Operating Leverage Related Terms
Aboitiz Power Degree of Operating Leverage Historical Data
* Premium members only.
The historical data trend for Aboitiz Power'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.
PHS:AP vs NEE, SO, DUK: Degree of Operating Leverage Comparison
For the Utilities - Regulated Electric subindustry, Aboitiz Power'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.
Aboitiz Power Degree of Operating Leverage vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Aboitiz Power's Degree of Operating Leverage distribution charts can be found below:
* The bar in red indicates where Aboitiz Power'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 -44.70 mean?
Aboitiz Power (PHS:AP) has a Degree of Operating Leverage of -44.70 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 Aboitiz Power and its competitors. According to the industry distribution chart, Aboitiz Power ranks #10 out of 493 companies in the Utilities - Regulated industry, placing it in the top 2%.
Is Aboitiz Power's Degree of Operating Leverage too high?
Aboitiz Power's current Degree of Operating Leverage is -44.70. Based on the distribution chart, Aboitiz Power ranks #10 out of 493 companies in the Utilities - Regulated industry, which is in the top quartile — a strong position relative to peers. Overall, Aboitiz Power has a GF Score™ of 86/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Aboitiz Power's Degree of Operating Leverage compare to NEE and SO?
According to the Utilities - Regulated industry distribution chart, Aboitiz Power ranks #10 out of 493 companies for Degree of Operating Leverage. This places Aboitiz Power in the top 2% of its industry — outperforming the majority of peers. The industry median Degree of Operating Leverage is 1.02. 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 - Regulated company?
The median Degree of Operating Leverage among Utilities - Regulated companies is 1.02, based on 493 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 Aboitiz Power and its competitors. For the Utilities - Regulated industry, the median Degree of Operating Leverage is 1.02 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Aboitiz Power's current Degree of Operating Leverage is -44.70. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Aboitiz Power stock overvalued right now?
Based on GuruFocus' analysis, Aboitiz Power (PHS:AP) is currently considered Modestly Overvalued. The stock's GF Value™ is ₱38.25, compared to a current price of ₱43.90 — trading 14.8% above its estimated fair value. The current Degree of Operating Leverage is -44.70. Aboitiz Power's overall GF Score™ is 86/100 with 10 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 Aboitiz Power (PHS:AP), the current Degree of Operating Leverage is -44.70 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 Aboitiz Power (PHS:AP) Overvalued in 2026?
Based on GuruFocus' analysis, Aboitiz Power stock appears to be overvalued.
The current stock price of ₱43.90 is trading 14.8% above its estimated GF Value™ of ₱38.25.
GuruFocus considers Aboitiz Power to be Modestly Overvalued.
Key valuation signals for PHS:AP:
Degree of Operating Leverage: -44.70
GF Value™: ₱38.25 vs. price of ₱43.90 (14.8% above fair value)
No single metric tells the full story. See the PHS:AP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Aboitiz Power Corp is an electric utility company operating in the Philippines of which Aboitiz Equity Ventures is the majority shareholder. Through its subsidiaries, Aboitiz Power generates and distributes electricity. The company controls a portfolio of geothermal, hydroelectric, solar, wind, oil-fired, and coal-fired power plants. The company's sites, meanwhile, are mainly hydroelectric. The vast majority of the company's income is derived from its power generation business. Almost all sales are made through bilateral contracts with private utilities, the country's state-owned power provider, and industrial and commercial customers.
86GF Score
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