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Makati FinancePHS:MFIN 54 Degree of Operating Leverage is 10.79 as of Mar. 2026. GuruFocus rates PHS:MFIN with a GF Score™ of 54/100 and a GF Value™ of ₱1.66 (Significantly Overvalued). The stock has 9 warning signs investors should review. Among 405 Credit Services companies, Makati Finance ranks worse than 89.14% on this metric.
Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue.
Makati Finance's Degree of Operating Leverage for the quarter that ended in Mar. 2026 was 10.79. The higher Degree of Operating Leverage, the higher operating risk the company will take.
The industry rank for Makati Finance's Degree of Operating Leverage or its related term are showing as below:
PHS:MFIN's Degree of Operating Leverage is ranked worse than 89.14% of 405
companies
in the Credit Services industry
Industry Median: 0.99
vs PHS:MFIN: 10.79
Makati Finance (PHS:MFIN) 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.
Makati Finance Degree of Operating Leverage Related Terms
Makati Finance Degree of Operating Leverage Historical Data
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The historical data trend for Makati Finance'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:MFIN vs V, MA, AXP: Degree of Operating Leverage Comparison
For the Credit Services subindustry, Makati Finance'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.
Makati Finance Degree of Operating Leverage vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Makati Finance's Degree of Operating Leverage distribution charts can be found below:
* The bar in red indicates where Makati Finance'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 10.79 mean?
Makati Finance (PHS:MFIN) has a Degree of Operating Leverage of 10.79 as of Mar. 2026. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for Makati Finance and its competitors. According to the industry distribution chart, Makati Finance ranks #361 out of 405 companies in the Credit Services industry, placing it in the top 89.1%.
Is Makati Finance's Degree of Operating Leverage too high?
Makati Finance's current Degree of Operating Leverage is 10.79. The Credit Services industry median Degree of Operating Leverage is 0.99. Makati Finance's value of 10.79 is 989.9% above this industry median. Based on the distribution chart, Makati Finance ranks #361 out of 405 companies in the Credit Services industry, which is in the bottom quartile relative to peers. Overall, Makati Finance has a GF Score™ of 54/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Makati Finance's Degree of Operating Leverage compare to V and MA?
According to the Credit Services industry distribution chart, Makati Finance ranks #361 out of 405 companies for Degree of Operating Leverage. This places Makati Finance in the lower half of its industry. The industry median Degree of Operating Leverage is 0.99. Makati Finance's value of 10.79 is 989.9% 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 Credit Services company?
The median Degree of Operating Leverage among Credit Services companies is 0.99, 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. Makati Finance's current Degree of Operating Leverage of 10.79 is 989.9% 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 Makati Finance and its competitors. For the Credit Services industry, the median Degree of Operating Leverage is 0.99 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Makati Finance's current Degree of Operating Leverage is 10.79. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Makati Finance stock overvalued right now?
Based on GuruFocus' analysis, Makati Finance (PHS:MFIN) is currently considered Significantly Overvalued. The stock's GF Value™ is ₱1.66, compared to a current price of ₱2.39 — trading 44% above its estimated fair value. The current Degree of Operating Leverage is 10.79 and 989.9% above the Credit Services industry median of 0.99. Makati Finance's overall GF Score™ is 54/100 with 9 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 Makati Finance (PHS:MFIN), the current Degree of Operating Leverage is 10.79 as of Mar. 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 Makati Finance (PHS:MFIN) Overvalued in 2026?
Based on GuruFocus' analysis, Makati Finance stock appears to be overvalued.
The current stock price of ₱2.39 is trading 44% above its estimated GF Value™ of ₱1.66.
GuruFocus considers Makati Finance to be Significantly Overvalued.
Key valuation signals for PHS:MFIN:
Degree of Operating Leverage: 10.79
GF Value™: ₱1.66 vs. price of ₱2.39 (44% above fair value)
Industry Position: 989.9% above the Credit Services median (#361 of 405)
No single metric tells the full story. See the PHS:MFIN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Makati Finance Corp provides financial services and advisory to its clients. It is engaged in stock dealership functions, credit line extensions, and acceptance of private placements. It has expanded its product lines from its traditional Rx Cashline, MFC Factors (receivables financing) Business Loans; Motorcycle Financing to include new financial products lines recently introduced by the company namely: corporate salary loans; personal loans; micro business loans; pension loans; car loans and leisure bikes financing. Its segments include Rx Cashline Group; Business Loans, Motor Vehicles Financing Group, Car Loans, and Other Segments. It derives revenue from Business Loans which grants loans to finance business owners who wish to expand its business or for the purpose of starting capital.
54GF Score
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