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Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue.
Sto SE KGaA's Degree of Operating Leverage for the quarter that ended in Jun. 2026 was 14.08. The higher Degree of Operating Leverage, the higher operating risk the company will take.
The industry rank for Sto SE KGaA's Degree of Operating Leverage or its related term are showing as below:
WBO:STOG's Degree of Operating Leverage is ranked worse than 90.21% of 1746
companies
in the Construction industry
Industry Median: 0.935
vs WBO:STOG: 14.08
Sto SE KGaA (WBO:STOG) 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.
Sto SE KGaA Degree of Operating Leverage Related Terms
Sto SE KGaA Degree of Operating Leverage Historical Data
* Premium members only.
The historical data trend for Sto SE KGaA'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.
WBO:STOG vs TT, JCI, CARR: Degree of Operating Leverage Comparison
For the Building Products & Equipment subindustry, Sto SE KGaA'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.
Sto SE KGaA Degree of Operating Leverage vs Construction Industry
For the Construction industry and Industrials sector, Sto SE KGaA's Degree of Operating Leverage distribution charts can be found below:
* The bar in red indicates where Sto SE KGaA'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 14.08 mean?
Sto SE KGaA (WBO:STOG) has a Degree of Operating Leverage of 14.08 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 Sto SE KGaA and its competitors. According to the industry distribution chart, Sto SE KGaA ranks #1575 out of 1746 companies in the Construction industry, placing it in the top 90.2%.
Is Sto SE KGaA's Degree of Operating Leverage too high?
Sto SE KGaA's current Degree of Operating Leverage is 14.08. The Construction industry median Degree of Operating Leverage is 0.94. Sto SE KGaA's value of 14.08 is 1405.9% above this industry median. Based on the distribution chart, Sto SE KGaA ranks #1575 out of 1746 companies in the Construction industry, which is in the bottom quartile relative to peers. Overall, Sto SE KGaA has a GF Score™ of 52/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Sto SE KGaA's Degree of Operating Leverage compare to TT and JCI?
According to the Construction industry distribution chart, Sto SE KGaA ranks #1575 out of 1746 companies for Degree of Operating Leverage. This places Sto SE KGaA in the lower half of its industry. The industry median Degree of Operating Leverage is 0.94. Sto SE KGaA's value of 14.08 is 1405.9% 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 Construction company?
The median Degree of Operating Leverage among Construction companies is 0.94, based on 1,746 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. Sto SE KGaA's current Degree of Operating Leverage of 14.08 is 1405.9% 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 Sto SE KGaA and its competitors. For the Construction industry, the median Degree of Operating Leverage is 0.94 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sto SE KGaA's current Degree of Operating Leverage is 14.08. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sto SE KGaA stock overvalued right now?
Based on GuruFocus' analysis, Sto SE KGaA (WBO:STOG) is currently considered Fairly Valued. The stock's GF Value™ is €104.41, compared to a current price of €99.30 — trading 4.9% below its estimated fair value. The current Degree of Operating Leverage is 14.08 and 1405.9% above the Construction industry median of 0.94. Sto SE KGaA's overall GF Score™ is 52/100 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 Sto SE KGaA (WBO:STOG), the current Degree of Operating Leverage is 14.08 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 Sto SE KGaA (WBO:STOG) Overvalued in 2026?
Based on GuruFocus' analysis, Sto SE KGaA stock appears to be undervalued.
The current stock price of €99.30 is trading 4.9% below its estimated GF Value™ of €104.41.
GuruFocus considers Sto SE KGaA to be Fairly Valued.
Key valuation signals for WBO:STOG:
Degree of Operating Leverage: 14.08
GF Value™: €104.41 vs. price of €99.30 (4.9% below fair value)
Industry Position: 1405.9% above the Construction median (#1575 of 1746)
No single metric tells the full story. See the WBO:STOG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sto SE & Co KGaA is a German manufacturer of building coating products and systems, headquartered in Stühlingen. The company develops and sells facade insulation systems, surface finishes, acoustic systems, interior paints and coatings, floor coatings, and concrete restoration products, largely marketed under the Sto brand. Its customers include architects, contractors, applicators, and distributors in the construction industry, and it serves both new-build and renovation markets. Sto organizes its business geographically into Western Europe, Northern/Eastern Europe, and America/Asia/Pacific, with Western Europe generating the largest share of revenue. The company operates production facilities and sales subsidiaries across Europe, North America, and Asia-Pacific, and it sells primarily through trade distribution and direct project business. Revenue comes from the sale of coating materials and complete facade and interior systems, supplemented by technical advice and application support services.
52GF 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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