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Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue.
Manila Water Co's Degree of Operating Leverage for the quarter that ended in Jun. 2026 was 3.39. The higher Degree of Operating Leverage, the higher operating risk the company will take.
The industry rank for Manila Water Co's Degree of Operating Leverage or its related term are showing as below:
PHS:MWC's Degree of Operating Leverage is ranked worse than 77.44% of 492
companies
in the Utilities - Regulated industry
Industry Median: 0.705
vs PHS:MWC: 3.39
Manila Water Co (PHS:MWC) 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.
Manila Water Co Degree of Operating Leverage Related Terms
Manila Water Co Degree of Operating Leverage Historical Data
* Premium members only.
The historical data trend for Manila Water Co'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.
Manila Water Co Degree of Operating Leverage Chart
PHS:MWC vs AWK, WTRG, AWR: Degree of Operating Leverage Comparison
For the Utilities - Regulated Water subindustry, Manila Water Co'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.
Manila Water Co Degree of Operating Leverage vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Manila Water Co's Degree of Operating Leverage distribution charts can be found below:
* The bar in red indicates where Manila Water Co'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 3.39 mean?
Manila Water Co (PHS:MWC) has a Degree of Operating Leverage of 3.39 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 Manila Water Co and its competitors. According to the industry distribution chart, Manila Water Co ranks #381 out of 492 companies in the Utilities - Regulated industry, placing it in the top 77.4%.
Is Manila Water Co's Degree of Operating Leverage too high?
Manila Water Co's current Degree of Operating Leverage is 3.39. The Utilities - Regulated industry median Degree of Operating Leverage is 0.71. Manila Water Co's value of 3.39 is 380.9% above this industry median. Based on the distribution chart, Manila Water Co ranks #381 out of 492 companies in the Utilities - Regulated industry, which is in the bottom quartile relative to peers. Overall, Manila Water Co has a GF Score™ of 85/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Manila Water Co's Degree of Operating Leverage compare to AWK and WTRG?
According to the Utilities - Regulated industry distribution chart, Manila Water Co ranks #381 out of 492 companies for Degree of Operating Leverage. This places Manila Water Co in the lower half of its industry. The industry median Degree of Operating Leverage is 0.71. Manila Water Co's value of 3.39 is 380.9% 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 an Utilities - Regulated company?
The median Degree of Operating Leverage among Utilities - Regulated companies is 0.71, based on 492 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. Manila Water Co's current Degree of Operating Leverage of 3.39 is 380.9% 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 Manila Water Co and its competitors. For the Utilities - Regulated industry, the median Degree of Operating Leverage is 0.71 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Manila Water Co's current Degree of Operating Leverage is 3.39. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Manila Water Co stock overvalued right now?
Based on GuruFocus' analysis, Manila Water Co (PHS:MWC) is currently considered Fairly Valued. The stock's GF Value™ is ₱35.73, compared to a current price of ₱35.20 — trading 1.5% below its estimated fair value. The current Degree of Operating Leverage is 3.39 and 380.9% above the Utilities - Regulated industry median of 0.71. Manila Water Co's overall GF Score™ is 85/100 with 4 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 Manila Water Co (PHS:MWC), the current Degree of Operating Leverage is 3.39 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 Manila Water Co (PHS:MWC) Overvalued in 2026?
Based on GuruFocus' analysis, Manila Water Co stock appears to be undervalued.
The current stock price of ₱35.20 is trading 1.5% below its estimated GF Value™ of ₱35.73.
GuruFocus considers Manila Water Co to be Fairly Valued.
Key valuation signals for PHS:MWC:
Degree of Operating Leverage: 3.39
GF Value™: ₱35.73 vs. price of ₱35.20 (1.5% below fair value)
Industry Position: 380.9% above the Utilities - Regulated median (#381 of 492)
No single metric tells the full story. See the PHS:MWC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Manila Water Co Inc holds the exclusive right to provide water and used water services in the East Zone of Metro Manila under a concession agreement with the Metropolitan Waterworks and Sewerage System. The company delivers water treatment, distribution, sewerage, and sanitation services to a large population across residential, commercial, and industrial customers. Its service area covers several cities and municipalities in Metro Manila and nearby parts of Rizal, including urban centers such as Makati, Pasig, Quezon City, Taguig, and Marikina, along with surrounding towns.
85GF Score
Get the complete analysis for PHS:MWC
Degree of Operating Leverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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