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Profound MedicalPROF -2.83%69 Degree of Operating Leverage is 0.05 as of Mar. 2026. GuruFocus rates PROF with a GF Score™ of 69/100 and a GF Value™ of $14.61 (Possible Value Trap). The stock has 1 warning sign investors should review. Among 784 Medical Devices & Instruments companies, Profound Medical ranks better than 52.81% on this metric.
Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue.
Profound Medical's Degree of Operating Leverage for the quarter that ended in Mar. 2026 was 0.05. The higher Degree of Operating Leverage, the higher operating risk the company will take.
The industry rank for Profound Medical's Degree of Operating Leverage or its related term are showing as below:
PROF's Degree of Operating Leverage is ranked better than 52.81% of 784
companies
in the Medical Devices & Instruments industry
Industry Median: 0.235
vs PROF: 0.05
Profound Medical (NAS:PROF) 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.
Profound Medical Degree of Operating Leverage Related Terms
Profound Medical Degree of Operating Leverage Historical Data
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The historical data trend for Profound Medical'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.
Profound Medical Degree of Operating Leverage Chart
PROF vs ABT, SYK, MDT: Degree of Operating Leverage Comparison
For the Medical Devices subindustry, Profound Medical'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.
Profound Medical Degree of Operating Leverage vs Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, Profound Medical's Degree of Operating Leverage distribution charts can be found below:
* The bar in red indicates where Profound Medical'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 0.05 mean?
Profound Medical (PROF) has a Degree of Operating Leverage of 0.05 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 Profound Medical and its competitors. According to the industry distribution chart, Profound Medical ranks #370 out of 784 companies in the Medical Devices & Instruments industry, placing it in the top 47.2%.
Is Profound Medical's Degree of Operating Leverage too high?
Profound Medical's current Degree of Operating Leverage is 0.05. The Medical Devices & Instruments industry median Degree of Operating Leverage is 0.24. Profound Medical's value of 0.05 is 78.7% below this industry median. Based on the distribution chart, Profound Medical ranks #370 out of 784 companies in the Medical Devices & Instruments industry, which is above the industry midpoint. Overall, Profound Medical has a GF Score™ of 69/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Profound Medical's Degree of Operating Leverage compare to ABT and SYK?
According to the Medical Devices & Instruments industry distribution chart, Profound Medical ranks #370 out of 784 companies for Degree of Operating Leverage. This puts Profound Medical in the upper half of its industry. The industry median Degree of Operating Leverage is 0.24. Profound Medical's value of 0.05 is 78.7% 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 a Medical Devices & Instruments company?
The median Degree of Operating Leverage among Medical Devices & Instruments companies is 0.24, based on 784 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. Profound Medical's current Degree of Operating Leverage of 0.05 is 78.7% 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 Profound Medical and its competitors. For the Medical Devices & Instruments industry, the median Degree of Operating Leverage is 0.24 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Profound Medical's current Degree of Operating Leverage is 0.05. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Profound Medical stock overvalued right now?
Based on GuruFocus' analysis, Profound Medical (PROF) is currently considered Possible Value Trap. The stock's GF Value™ is $14.61, compared to a current price of $7.04 — trading 51.8% below its estimated fair value. The current Degree of Operating Leverage is 0.05 and 78.7% below the Medical Devices & Instruments industry median of 0.24. Profound Medical's overall GF Score™ is 69/100 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 Profound Medical (PROF), the current Degree of Operating Leverage is 0.05 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 Profound Medical (PROF) Overvalued in 2026?
Based on GuruFocus' analysis, Profound Medical stock appears to be undervalued.
The current stock price of $7.04 is trading 51.8% below its estimated GF Value™ of $14.61.
GuruFocus considers Profound Medical to be Possible Value Trap.
Key valuation signals for PROF:
Degree of Operating Leverage: 0.05
GF Value™: $14.61 vs. price of $7.04 (51.8% below fair value)
Industry Position: 78.7% below the Medical Devices & Instruments median (#370 of 784)
No single metric tells the full story. See the PROF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Profound Medical Corp is a commercial-stage medical device company focused on the development and marketing of AI-powered, MRI-guided, incision-free therapies for the ablation of diseased tissue. The company's flagship product, the TULSA-PRO system, combines real-time MRI, robotically-driven transurethral sweeping action/thermal ultrasound and closed-loop temperature feedback control to ablate whole gland or physician defined region of malignant or benign prostate tissue. Its platform technologies combine imaging, robotic control, and ultrasound-based thermal ablation for the treatment of prostate conditions. The company generates revenue through the sale of capital equipment and recurring sales of single-use devices and related services used in patient treatments.
69GF Score
Get the complete analysis for PROF
Degree of Operating Leverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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