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Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue.
SIM Technology Group's Degree of Operating Leverage for the quarter that ended in Dec. 2025 was 10.35. The higher Degree of Operating Leverage, the higher operating risk the company will take.
The industry rank for SIM Technology Group's Degree of Operating Leverage or its related term are showing as below:
SIMTF's Degree of Operating Leverage is ranked worse than 84.78% of 2437
companies
in the Hardware industry
Industry Median: 1.04
vs SIMTF: 10.35
SIM Technology Group (OTCPK:SIMTF) 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.
SIM Technology Group Degree of Operating Leverage Related Terms
SIM Technology Group Degree of Operating Leverage Historical Data
* Premium members only.
The historical data trend for SIM Technology Group'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.
SIM Technology Group Degree of Operating Leverage Chart
SIMTF vs CSCO, MSI, HPE: Degree of Operating Leverage Comparison
For the Communication Equipment subindustry, SIM Technology Group'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.
SIM Technology Group Degree of Operating Leverage vs Hardware Industry
For the Hardware industry and Technology sector, SIM Technology Group's Degree of Operating Leverage distribution charts can be found below:
* The bar in red indicates where SIM Technology Group'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 10.35 mean?
SIM Technology Group (SIMTF) has a Degree of Operating Leverage of 10.35 as of Dec. 2025. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for SIM Technology Group and its competitors. According to the industry distribution chart, SIM Technology Group ranks #2066 out of 2437 companies in the Hardware industry, placing it in the top 84.8%.
Is SIM Technology Group's Degree of Operating Leverage too high?
SIM Technology Group's current Degree of Operating Leverage is 10.35. The Hardware industry median Degree of Operating Leverage is 1.04. SIM Technology Group's value of 10.35 is 895.2% above this industry median. Based on the distribution chart, SIM Technology Group ranks #2066 out of 2437 companies in the Hardware industry, which is in the bottom quartile relative to peers. Overall, SIM Technology Group has a GF Score™ of 38/100, reflecting its overall financial health beyond just this single metric.
How does SIM Technology Group's Degree of Operating Leverage compare to CSCO and MSI?
According to the Hardware industry distribution chart, SIM Technology Group ranks #2066 out of 2437 companies for Degree of Operating Leverage. This places SIM Technology Group in the lower half of its industry. The industry median Degree of Operating Leverage is 1.04. SIM Technology Group's value of 10.35 is 895.2% 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 Hardware company?
The median Degree of Operating Leverage among Hardware companies is 1.04, based on 2,437 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. SIM Technology Group's current Degree of Operating Leverage of 10.35 is 895.2% 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 SIM Technology Group and its competitors. For the Hardware industry, the median Degree of Operating Leverage is 1.04 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. SIM Technology Group's current Degree of Operating Leverage is 10.35. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SIM Technology Group stock overvalued right now?
SIM Technology Group (SIMTF) has a current Degree of Operating Leverage of 10.35. The stock's GF Value™ is $0.05, compared to a current price of $0.05 — trading 8.2% below its estimated fair value. The current Degree of Operating Leverage is 10.35 and 895.2% above the Hardware industry median of 1.04. SIM Technology Group's overall GF Score™ is 38/100 with 2 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 SIM Technology Group (SIMTF), the current Degree of Operating Leverage is 10.35 as of Dec. 2025. 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 SIM Technology Group (SIMTF) Overvalued in 2026?
Based on GuruFocus' analysis, SIM Technology Group stock appears to be undervalued.
The current stock price of $0.05 is trading 8.2% below its estimated GF Value™ of $0.05.
Key valuation signals for SIMTF:
Degree of Operating Leverage: 10.35
GF Value™: $0.05 vs. price of $0.05 (8.2% below fair value)
Industry Position: 895.2% above the Hardware median (#2066 of 2437)
No single metric tells the full story. See the SIMTF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
SIM Technology Group Ltd is a mobile communication and Internet of Things solutions developer. The Group's product offerings include smartphones, tablets, smart wearable devices, IoT terminals (e.g., POS devices, tracking devices, smart systems), industrial IoT and intelligent manufacturing solutions, and vehicle electronics and smart automotive solutions, among others. Its reportable operating segments are: Intelligent terminal ODM business, Automotive intelligent products business, and Property management. The majority of its revenue is generated from the Intelligent terminal ODM business. Geographically, the Group generates maximum revenue from the People's Republic of China (PRC), and the rest from Europe, the United States, Hong Kong, and Other Asian countries.
38GF Score
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