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Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue.
Prairie Provident Resources's Degree of Operating Leverage for the quarter that ended in Mar. 2026 was 3,082.13. The higher Degree of Operating Leverage, the higher operating risk the company will take.
The industry rank for Prairie Provident Resources's Degree of Operating Leverage or its related term are showing as below:
PRPRF's Degree of Operating Leverage is ranked worse than 99.78% of 902
companies
in the Oil & Gas industry
Industry Median: 0.85
vs PRPRF: 3082.13
Prairie Provident Resources (OTCPK:PRPRF) 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.
Prairie Provident Resources Degree of Operating Leverage Related Terms
Prairie Provident Resources 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.
Prairie Provident Resources Degree of Operating Leverage Chart
PRPRF vs COP, EOG, FANG: Degree of Operating Leverage Comparison
For the Oil & Gas E&P subindustry, Prairie Provident Resources'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.
Prairie Provident Resources Degree of Operating Leverage vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Prairie Provident Resources's Degree of Operating Leverage distribution charts can be found below:
* The bar in red indicates where Prairie Provident Resources'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 3,082.13 mean?
Prairie Provident Resources (PRPRF) has a Degree of Operating Leverage of 3,082.13 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 Prairie Provident Resources and its competitors. According to the industry distribution chart, Prairie Provident Resources ranks #900 out of 902 companies in the Oil & Gas industry, placing it in the top 99.8%.
Is Prairie Provident Resources' Degree of Operating Leverage too high?
Prairie Provident Resources' current Degree of Operating Leverage is 3,082.13. The Oil & Gas industry median Degree of Operating Leverage is 0.85. Prairie Provident Resources' value of 3,082.13 is 362503.5% above this industry median. Based on the distribution chart, Prairie Provident Resources ranks #900 out of 902 companies in the Oil & Gas industry, which is in the bottom quartile relative to peers. Overall, Prairie Provident Resources has a GF Score™ of 25/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Prairie Provident Resources' Degree of Operating Leverage compare to COP and EOG?
According to the Oil & Gas industry distribution chart, Prairie Provident Resources ranks #900 out of 902 companies for Degree of Operating Leverage. This places Prairie Provident Resources in the lower half of its industry. The industry median Degree of Operating Leverage is 0.85. Prairie Provident Resources' value of 3,082.13 is 362503.5% 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 Oil & Gas company?
The median Degree of Operating Leverage among Oil & Gas companies is 0.85, based on 902 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. Prairie Provident Resources's current Degree of Operating Leverage of 3,082.13 is 362503.5% 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 Prairie Provident Resources and its competitors. For the Oil & Gas industry, the median Degree of Operating Leverage is 0.85 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Prairie Provident Resources's current Degree of Operating Leverage is 3,082.13. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Prairie Provident Resources stock overvalued right now?
Based on GuruFocus' analysis, Prairie Provident Resources (PRPRF) is currently considered Modestly Undervalued. The stock's GF Value™ is $0.35, compared to a current price of $0.26 — trading 25.7% below its estimated fair value. The current Degree of Operating Leverage is 3,082.13 and 362503.5% above the Oil & Gas industry median of 0.85. Prairie Provident Resources' overall GF Score™ is 25/100 with 5 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 Prairie Provident Resources (PRPRF), the current Degree of Operating Leverage is 3,082.13 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 Prairie Provident Resources (PRPRF) Overvalued in 2026?
Based on GuruFocus' analysis, Prairie Provident Resources stock appears to be undervalued.
The current stock price of $0.26 is trading 25.7% below its estimated GF Value™ of $0.35.
GuruFocus considers Prairie Provident Resources to be Modestly Undervalued.
Key valuation signals for PRPRF:
Degree of Operating Leverage: 3,082.13
GF Value™: $0.35 vs. price of $0.26 (25.7% below fair value)
Industry Position: 362503.5% above the Oil & Gas median (#900 of 902)
No single metric tells the full story. See the PRPRF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Prairie Provident Resources Inc is an independent oil and natural gas exploration, development, and production company. Its reserves, producing properties, and exploration prospects are located predominantly in the Michichi, Princess, and Provost areas of Alberta. A majority of the company's revenue is generated through petroleum and natural gas sales.
25GF Score
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