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Tandy Leather FactoryTLF -0.76%51 Degree of Operating Leverage is -74.39 as of Jun. 2026. GuruFocus rates TLF with a GF Score™ of 51/100 and a GF Value™ of $4.23 (Significantly Undervalued). The stock has 3 warning signs investors should review. Among 1,104 Retail - Cyclical companies, Tandy Leather Factory ranks better than 96.74% on this metric.
Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue.
Tandy Leather Factory's Degree of Operating Leverage for the quarter that ended in Jun. 2026 was -74.39. The higher Degree of Operating Leverage, the higher operating risk the company will take.
The industry rank for Tandy Leather Factory's Degree of Operating Leverage or its related term are showing as below:
TLF's Degree of Operating Leverage is ranked better than 96.74% of 1104
companies
in the Retail - Cyclical industry
Industry Median: 1.195
vs TLF: -74.39
Tandy Leather Factory (NAS:TLF) 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.
Tandy Leather Factory Degree of Operating Leverage Related Terms
Tandy Leather Factory Degree of Operating Leverage Historical Data
* Premium members only.
The historical data trend for Tandy Leather Factory'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.
Tandy Leather Factory Degree of Operating Leverage Chart
TLF vs RECT, AETN, BWTL: Degree of Operating Leverage Comparison
For the Specialty Retail subindustry, Tandy Leather Factory'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.
Tandy Leather Factory Degree of Operating Leverage vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Tandy Leather Factory's Degree of Operating Leverage distribution charts can be found below:
* The bar in red indicates where Tandy Leather Factory'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 -74.39 mean?
Tandy Leather Factory (TLF) has a Degree of Operating Leverage of -74.39 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 Tandy Leather Factory and its competitors. According to the industry distribution chart, Tandy Leather Factory ranks #36 out of 1104 companies in the Retail - Cyclical industry, placing it in the top 3.3%.
Is Tandy Leather Factory's Degree of Operating Leverage too high?
Tandy Leather Factory's current Degree of Operating Leverage is -74.39. Based on the distribution chart, Tandy Leather Factory ranks #36 out of 1104 companies in the Retail - Cyclical industry, which is in the top quartile — a strong position relative to peers. Overall, Tandy Leather Factory has a GF Score™ of 51/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Tandy Leather Factory's Degree of Operating Leverage compare to RECT and AETN?
According to the Retail - Cyclical industry distribution chart, Tandy Leather Factory ranks #36 out of 1104 companies for Degree of Operating Leverage. This places Tandy Leather Factory in the top 3% of its industry — outperforming the majority of peers. The industry median Degree of Operating Leverage is 1.20. 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 Retail - Cyclical company?
The median Degree of Operating Leverage among Retail - Cyclical companies is 1.20, based on 1,104 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 Tandy Leather Factory and its competitors. For the Retail - Cyclical industry, the median Degree of Operating Leverage is 1.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tandy Leather Factory's current Degree of Operating Leverage is -74.39. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tandy Leather Factory stock overvalued right now?
Based on GuruFocus' analysis, Tandy Leather Factory (TLF) is currently considered Significantly Undervalued. The stock's GF Value™ is $4.23, compared to a current price of $2.62 — trading 38.1% below its estimated fair value. The current Degree of Operating Leverage is -74.39. Tandy Leather Factory's overall GF Score™ is 51/100 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 Tandy Leather Factory (TLF), the current Degree of Operating Leverage is -74.39 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 Tandy Leather Factory (TLF) Overvalued in 2026?
Based on GuruFocus' analysis, Tandy Leather Factory stock appears to be undervalued.
The current stock price of $2.62 is trading 38.1% below its estimated GF Value™ of $4.23.
GuruFocus considers Tandy Leather Factory to be Significantly Undervalued.
Key valuation signals for TLF:
Degree of Operating Leverage: -74.39
GF Value™: $4.23 vs. price of $2.62 (38.1% below fair value)
No single metric tells the full story. See the TLF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tandy Leather Factory Inc is a specialty retailers of leather and leathercraft-related items. Its primary line of business is the sale of leather, leather crafts, and related supplies. Its broad line of leather and related products includes leather, leatherworking tools, leather dyes and finishes, and do-it-yourself kits. Its products include Leather, tools, Hardware, Supplies, Kits, Books and Patterns, and Gift cards. The company sells its products primarily through company-owned stores and through orders generated from its global websites, and through direct account representatives in its commercial division. Geographically the company operates within the United States, and Canada. it generates the highest revenue from the United States.
51GF Score
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Degree of Operating Leverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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