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LSB IndustriesSTU:LS3 63 Degree of Operating Leverage is -40.59 as of Jun. 2026. GuruFocus rates STU:LS3 with a GF Score™ of 63/100 and a GF Value™ of €8.70 (Fairly Valued). The stock has 2 warning signs investors should review. Among 1,556 Chemicals companies, LSB Industries ranks better than 94.41% on this metric.
Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue.
LSB Industries's Degree of Operating Leverage for the quarter that ended in Jun. 2026 was -40.59. The higher Degree of Operating Leverage, the higher operating risk the company will take.
The industry rank for LSB Industries's Degree of Operating Leverage or its related term are showing as below:
STU:LS3's Degree of Operating Leverage is ranked better than 94.41% of 1556
companies
in the Chemicals industry
Industry Median: 1.27
vs STU:LS3: -40.59
LSB Industries (STU:LS3) 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.
LSB Industries Degree of Operating Leverage Related Terms
LSB Industries Degree of Operating Leverage Historical Data
* Premium members only.
The historical data trend for LSB Industries'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.
STU:LS3 vs WLKP, TROX, GPRE: Degree of Operating Leverage Comparison
For the Chemicals subindustry, LSB Industries'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.
LSB Industries Degree of Operating Leverage vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, LSB Industries's Degree of Operating Leverage distribution charts can be found below:
* The bar in red indicates where LSB Industries'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 -40.59 mean?
LSB Industries (STU:LS3) has a Degree of Operating Leverage of -40.59 as of Jun. 2026. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for LSB Industries and its competitors. According to the industry distribution chart, LSB Industries ranks #87 out of 1556 companies in the Chemicals industry, placing it in the top 5.6%.
Is LSB Industries' Degree of Operating Leverage too high?
LSB Industries' current Degree of Operating Leverage is -40.59. Based on the distribution chart, LSB Industries ranks #87 out of 1556 companies in the Chemicals industry, which is in the top quartile — a strong position relative to peers. Overall, LSB Industries has a GF Score™ of 63/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does LSB Industries' Degree of Operating Leverage compare to WLKP and TROX?
According to the Chemicals industry distribution chart, LSB Industries ranks #87 out of 1556 companies for Degree of Operating Leverage. This places LSB Industries in the top 6% of its industry — outperforming the majority of peers. The industry median Degree of Operating Leverage is 1.27. 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 Chemicals company?
The median Degree of Operating Leverage among Chemicals companies is 1.27, based on 1,556 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. 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 LSB Industries and its competitors. For the Chemicals industry, the median Degree of Operating Leverage is 1.27 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. LSB Industries's current Degree of Operating Leverage is -40.59. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is LSB Industries stock overvalued right now?
Based on GuruFocus' analysis, LSB Industries (STU:LS3) is currently considered Fairly Valued. The stock's GF Value™ is €8.70, compared to a current price of €8.85 — trading 1.7% above its estimated fair value. The current Degree of Operating Leverage is -40.59. LSB Industries' overall GF Score™ is 63/100 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 LSB Industries (STU:LS3), the current Degree of Operating Leverage is -40.59 as of Jun. 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 LSB Industries (STU:LS3) Overvalued in 2026?
Based on GuruFocus' analysis, LSB Industries stock appears to be overvalued.
The current stock price of €8.85 is trading 1.7% above its estimated GF Value™ of €8.70.
GuruFocus considers LSB Industries to be Fairly Valued.
Key valuation signals for STU:LS3:
Degree of Operating Leverage: -40.59
GF Value™: €8.70 vs. price of €8.85 (1.7% above fair value)
No single metric tells the full story. See the STU:LS3 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
LSB Industries Inc is engaged in the manufacturing and sale of chemical products in the United States. The company manufactures and sells chemical products for the agricultural and industrial sectors. Its products include ammonia, fertilizer grade ammonium nitrate (AN and HDAN), and urea ammonia nitrate (UAN) for agricultural applications; high purity and commercial grade ammonia, sulfuric acids, concentrated, blended, and regular nitric acid, mixed nitrating acids, carbon dioxide, and diesel exhaust fluid for industrial applications; and industrial grade AN (LDAN) and AN solutions for mining applications. Its products are sold through distributors and directly to end customers throughout the United States and other parts of North America.
63GF Score
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