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Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue.
STI Education Systems Holdings's Degree of Operating Leverage for the quarter that ended in Mar. 2026 was 0.99. The higher Degree of Operating Leverage, the higher operating risk the company will take.
The industry rank for STI Education Systems Holdings's Degree of Operating Leverage or its related term are showing as below:
PHS:STI's Degree of Operating Leverage is ranked better than 50.41% of 244
companies
in the Education industry
Industry Median: 1.08
vs PHS:STI: 0.99
STI Education Systems Holdings (PHS:STI) 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.
STI Education Systems Holdings Degree of Operating Leverage Related Terms
STI Education Systems Holdings 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.
STI Education Systems Holdings Degree of Operating Leverage Chart
PHS:STI vs EDU, TAL, LAUR: Degree of Operating Leverage Comparison
For the Education & Training Services subindustry, STI Education Systems Holdings'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.
STI Education Systems Holdings Degree of Operating Leverage vs Education Industry
For the Education industry and Consumer Defensive sector, STI Education Systems Holdings's Degree of Operating Leverage distribution charts can be found below:
* The bar in red indicates where STI Education Systems Holdings'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 0.99 mean?
STI Education Systems Holdings (PHS:STI) has a Degree of Operating Leverage of 0.99 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 STI Education Systems Holdings and its competitors. According to the industry distribution chart, STI Education Systems Holdings ranks #121 out of 244 companies in the Education industry, placing it in the top 49.6%.
Is STI Education Systems Holdings' Degree of Operating Leverage too high?
STI Education Systems Holdings' current Degree of Operating Leverage is 0.99. The Education industry median Degree of Operating Leverage is 1.08. STI Education Systems Holdings' value of 0.99 is 8.3% below this industry median. Based on the distribution chart, STI Education Systems Holdings ranks #121 out of 244 companies in the Education industry, which is above the industry midpoint. Overall, STI Education Systems Holdings has a GF Score™ of 97/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does STI Education Systems Holdings' Degree of Operating Leverage compare to EDU and TAL?
According to the Education industry distribution chart, STI Education Systems Holdings ranks #121 out of 244 companies for Degree of Operating Leverage. This puts STI Education Systems Holdings in the upper half of its industry. The industry median Degree of Operating Leverage is 1.08. STI Education Systems Holdings' value of 0.99 is 8.3% below 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 Education company?
The median Degree of Operating Leverage among Education companies is 1.08, based on 244 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. STI Education Systems Holdings's current Degree of Operating Leverage of 0.99 is 8.3% below 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 STI Education Systems Holdings and its competitors. For the Education industry, the median Degree of Operating Leverage is 1.08 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. STI Education Systems Holdings's current Degree of Operating Leverage is 0.99. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is STI Education Systems Holdings stock overvalued right now?
Based on GuruFocus' analysis, STI Education Systems Holdings (PHS:STI) is currently considered Modestly Undervalued. The stock's GF Value™ is ₱1.39, compared to a current price of ₱1.22 — trading 12.2% below its estimated fair value. The current Degree of Operating Leverage is 0.99 and 8.3% below the Education industry median of 1.08. STI Education Systems Holdings' overall GF Score™ is 97/100 with 1 warning sign 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 STI Education Systems Holdings (PHS:STI), the current Degree of Operating Leverage is 0.99 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 STI Education Systems Holdings (PHS:STI) Overvalued in 2026?
Based on GuruFocus' analysis, STI Education Systems Holdings stock appears to be undervalued.
The current stock price of ₱1.22 is trading 12.2% below its estimated GF Value™ of ₱1.39.
GuruFocus considers STI Education Systems Holdings to be Modestly Undervalued.
Key valuation signals for PHS:STI:
Degree of Operating Leverage: 0.99
GF Value™: ₱1.39 vs. price of ₱1.22 (12.2% below fair value)
Industry Position: 8.3% below the Education median (#121 of 244)
No single metric tells the full story. See the PHS:STI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
STI Education Systems Holdings Inc is a Philippine investment holding company focused on education and education-related activities through subsidiaries that operate schools offering basic education, Senior High School, tertiary, post-graduate, and non-degree programs. The majority of its revenues come from educational services provided over time. It is organized into five geographical segments: Metro Manila, Northern Luzon, Southern Luzon, Visayas, and Mindanao, with the majority of revenue coming from Metro Manila.
97GF Score
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