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Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue.
Universe Pharmaceuticals's Degree of Operating Leverage for the quarter that ended in Mar. 2026 was 10.17. The higher Degree of Operating Leverage, the higher operating risk the company will take.
The industry rank for Universe Pharmaceuticals's Degree of Operating Leverage or its related term are showing as below:
UPC's Degree of Operating Leverage is ranked worse than 82.96% of 939
companies
in the Drug Manufacturers industry
Industry Median: 0.97
vs UPC: 10.17
Universe Pharmaceuticals (NAS:UPC) 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.
Universe Pharmaceuticals Degree of Operating Leverage Related Terms
Universe Pharmaceuticals Degree of Operating Leverage Historical Data
* Premium members only.
The historical data trend for Universe Pharmaceuticals'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.
Universe Pharmaceuticals Degree of Operating Leverage Chart
UPC vs CTTH, PRFX, CVSI: Degree of Operating Leverage Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Universe Pharmaceuticals'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.
Universe Pharmaceuticals Degree of Operating Leverage vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Universe Pharmaceuticals's Degree of Operating Leverage distribution charts can be found below:
* The bar in red indicates where Universe Pharmaceuticals'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 10.17 mean?
Universe Pharmaceuticals (UPC) has a Degree of Operating Leverage of 10.17 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 Universe Pharmaceuticals and its competitors. According to the industry distribution chart, Universe Pharmaceuticals ranks #779 out of 939 companies in the Drug Manufacturers industry, placing it in the top 83%.
Is Universe Pharmaceuticals' Degree of Operating Leverage too high?
Universe Pharmaceuticals' current Degree of Operating Leverage is 10.17. The Drug Manufacturers industry median Degree of Operating Leverage is 0.97. Universe Pharmaceuticals' value of 10.17 is 948.5% above this industry median. Based on the distribution chart, Universe Pharmaceuticals ranks #779 out of 939 companies in the Drug Manufacturers industry, which is in the bottom quartile relative to peers. Overall, Universe Pharmaceuticals has a GF Score™ of 62/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Universe Pharmaceuticals' Degree of Operating Leverage compare to CTTH and PRFX?
According to the Drug Manufacturers industry distribution chart, Universe Pharmaceuticals ranks #779 out of 939 companies for Degree of Operating Leverage. This places Universe Pharmaceuticals in the lower half of its industry. The industry median Degree of Operating Leverage is 0.97. Universe Pharmaceuticals' value of 10.17 is 948.5% 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 a Drug Manufacturers company?
The median Degree of Operating Leverage among Drug Manufacturers companies is 0.97, based on 939 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. Universe Pharmaceuticals's current Degree of Operating Leverage of 10.17 is 948.5% 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 Universe Pharmaceuticals and its competitors. For the Drug Manufacturers industry, the median Degree of Operating Leverage is 0.97 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Universe Pharmaceuticals's current Degree of Operating Leverage is 10.17. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Universe Pharmaceuticals stock overvalued right now?
Based on GuruFocus' analysis, Universe Pharmaceuticals (UPC) is currently considered Significantly Overvalued. The stock's GF Value™ is $2.75, compared to a current price of $4.36 — trading 58.5% above its estimated fair value. The current Degree of Operating Leverage is 10.17 and 948.5% above the Drug Manufacturers industry median of 0.97. Universe Pharmaceuticals' overall GF Score™ is 62/100 with 7 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 Universe Pharmaceuticals (UPC), the current Degree of Operating Leverage is 10.17 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 Universe Pharmaceuticals (UPC) Overvalued in 2026?
Based on GuruFocus' analysis, Universe Pharmaceuticals stock appears to be overvalued.
The current stock price of $4.36 is trading 58.5% above its estimated GF Value™ of $2.75.
GuruFocus considers Universe Pharmaceuticals to be Significantly Overvalued.
Key valuation signals for UPC:
Degree of Operating Leverage: 10.17
GF Value™: $2.75 vs. price of $4.36 (58.5% above fair value)
Industry Position: 948.5% above the Drug Manufacturers median (#779 of 939)
No single metric tells the full story. See the UPC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Universe Pharmaceuticals Inc is a pharmaceutical company specializing in the manufacturing, marketing, sales and distribution of traditional Chinese medicine derivatives products targeting the elderly with the goal of addressing their physical conditions in the ageing process and promoting their general well-being. The company also sells biomedical drugs, medical instruments, Traditional Chinese Medicine Pieces, and dietary supplements manufactured by third-party pharmaceutical companies. Its products are under two categories namely treatment and relief for common chronic health conditions in the elderly designed to achieve physical wellness and longevity (Chronic Condition Treatments), and cold and flu medications.
62GF Score
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