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Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue.
Stanley Electric Co's Degree of Operating Leverage for the quarter that ended in Mar. 2026 was 3.92. The higher Degree of Operating Leverage, the higher operating risk the company will take.
The industry rank for Stanley Electric Co's Degree of Operating Leverage or its related term are showing as below:
STAEF's Degree of Operating Leverage is ranked worse than 71.14% of 1303
companies
in the Vehicles & Parts industry
Industry Median: 1.01
vs STAEF: 3.92
Stanley Electric Co (OTCPK:STAEF) 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.
Stanley Electric Co Degree of Operating Leverage Related Terms
Stanley Electric Co Degree of Operating Leverage Historical Data
* Premium members only.
The historical data trend for Stanley Electric 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.
Stanley Electric Co Degree of Operating Leverage Chart
STAEF vs ORLY, AZO, GPC: Degree of Operating Leverage Comparison
For the Auto Parts subindustry, Stanley Electric 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.
Stanley Electric Co Degree of Operating Leverage vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Stanley Electric Co's Degree of Operating Leverage distribution charts can be found below:
* The bar in red indicates where Stanley Electric 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 3.92 mean?
Stanley Electric Co (STAEF) has a Degree of Operating Leverage of 3.92 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 Stanley Electric Co and its competitors. According to the industry distribution chart, Stanley Electric Co ranks #927 out of 1303 companies in the Vehicles & Parts industry, placing it in the top 71.1%.
Is Stanley Electric Co's Degree of Operating Leverage too high?
Stanley Electric Co's current Degree of Operating Leverage is 3.92. The Vehicles & Parts industry median Degree of Operating Leverage is 1.01. Stanley Electric Co's value of 3.92 is 288.1% above this industry median. Based on the distribution chart, Stanley Electric Co ranks #927 out of 1303 companies in the Vehicles & Parts industry, which is below the industry midpoint. Overall, Stanley Electric Co has a GF Score™ of 88/100, reflecting its overall financial health beyond just this single metric.
How does Stanley Electric Co's Degree of Operating Leverage compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, Stanley Electric Co ranks #927 out of 1303 companies for Degree of Operating Leverage. This places Stanley Electric Co in the lower half of its industry. The industry median Degree of Operating Leverage is 1.01. Stanley Electric Co's value of 3.92 is 288.1% 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 Vehicles & Parts company?
The median Degree of Operating Leverage among Vehicles & Parts companies is 1.01, based on 1,303 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. Stanley Electric Co's current Degree of Operating Leverage of 3.92 is 288.1% 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 Stanley Electric Co and its competitors. For the Vehicles & Parts industry, the median Degree of Operating Leverage is 1.01 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Stanley Electric Co's current Degree of Operating Leverage is 3.92. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Stanley Electric Co stock overvalued right now?
Stanley Electric Co (STAEF) has a current Degree of Operating Leverage of 3.92. The stock's GF Value™ is $22.48, compared to a current price of $20.36 — trading 9.5% below its estimated fair value. The current Degree of Operating Leverage is 3.92 and 288.1% above the Vehicles & Parts industry median of 1.01. Stanley Electric Co's overall GF Score™ is 88/100 with 3 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 Stanley Electric Co (STAEF), the current Degree of Operating Leverage is 3.92 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 Stanley Electric Co (STAEF) Overvalued in 2026?
Based on GuruFocus' analysis, Stanley Electric Co stock appears to be undervalued.
The current stock price of $20.36 is trading 9.5% below its estimated GF Value™ of $22.48.
Key valuation signals for STAEF:
Degree of Operating Leverage: 3.92
GF Value™: $22.48 vs. price of $20.36 (9.5% below fair value)
Industry Position: 288.1% above the Vehicles & Parts median (#927 of 1303)
No single metric tells the full story. See the STAEF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Stanley Electric Co Ltd is engaged in the manufacture and sale of lighting and electronic components, mainly for the automotive industry. The company operates through three reportable segments: Automotive Equipment Business, Components Business, and Electronic Application Products Business. The Automotive Equipment segment produces automotive lighting products for automobile manufacturers, while the Components segment provides electronic device products for electrical and automotive-related manufacturers. The Electronic Application Products segment manufactures products such as LCD backlights, strobes, and operation panels tailored to customer specifications. It generates the majority of its revenue from the Automotive equipment business segment.
88GF Score
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