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adidas AGXSWX:ADS 83 Degree of Operating Leverage is 2.71 as of Jun. 2026. GuruFocus rates XSWX:ADS with a GF Score™ of 83/100 and a GF Value™ of CHF215.23 (Significantly Undervalued). Among 1,020 Manufacturing - Apparel & Accessories companies, adidas AG ranks worse than 65.49% on this metric.
Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue.
adidas AG's Degree of Operating Leverage for the quarter that ended in Jun. 2026 was 2.71. The higher Degree of Operating Leverage, the higher operating risk the company will take.
The industry rank for adidas AG's Degree of Operating Leverage or its related term are showing as below:
XSWX:ADS's Degree of Operating Leverage is ranked worse than 65.49% of 1020
companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 1.075
vs XSWX:ADS: 2.71
adidas AG (XSWX:ADS) 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.
adidas AG Degree of Operating Leverage Related Terms
adidas AG Degree of Operating Leverage Historical Data
* Premium members only.
The historical data trend for adidas AG'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.
XSWX:ADS vs NKE, DECK, ONON: Degree of Operating Leverage Comparison
For the Footwear & Accessories subindustry, adidas AG'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.
adidas AG Degree of Operating Leverage vs Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, adidas AG's Degree of Operating Leverage distribution charts can be found below:
* The bar in red indicates where adidas AG'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 2.71 mean?
adidas AG (XSWX:ADS) has a Degree of Operating Leverage of 2.71 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 adidas AG and its competitors. According to the industry distribution chart, adidas AG ranks #668 out of 1020 companies in the Manufacturing - Apparel & Accessories industry, placing it in the top 65.5%.
Is adidas AG's Degree of Operating Leverage too high?
adidas AG's current Degree of Operating Leverage is 2.71. The Manufacturing - Apparel & Accessories industry median Degree of Operating Leverage is 1.08. adidas AG's value of 2.71 is 152.1% above this industry median. Based on the distribution chart, adidas AG ranks #668 out of 1020 companies in the Manufacturing - Apparel & Accessories industry, which is below the industry midpoint. Overall, adidas AG has a GF Score™ of 83/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does adidas AG's Degree of Operating Leverage compare to NKE and DECK?
According to the Manufacturing - Apparel & Accessories industry distribution chart, adidas AG ranks #668 out of 1020 companies for Degree of Operating Leverage. This places adidas AG in the lower half of its industry. The industry median Degree of Operating Leverage is 1.08. adidas AG's value of 2.71 is 152.1% 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 Manufacturing - Apparel & Accessories company?
The median Degree of Operating Leverage among Manufacturing - Apparel & Accessories companies is 1.08, based on 1,020 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. adidas AG's current Degree of Operating Leverage of 2.71 is 152.1% 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 adidas AG and its competitors. For the Manufacturing - Apparel & Accessories industry, the median Degree of Operating Leverage is 1.08 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. adidas AG's current Degree of Operating Leverage is 2.71. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is adidas AG stock overvalued right now?
Based on GuruFocus' analysis, adidas AG (XSWX:ADS) is currently considered Significantly Undervalued. The stock's GF Value™ is CHF215.23, compared to a current price of CHF147.80 — trading 31.3% below its estimated fair value. The current Degree of Operating Leverage is 2.71 and 152.1% above the Manufacturing - Apparel & Accessories industry median of 1.08. adidas AG's overall GF Score™ is 83/100. 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 adidas AG (XSWX:ADS), the current Degree of Operating Leverage is 2.71 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 adidas AG (XSWX:ADS) Overvalued in 2026?
Based on GuruFocus' analysis, adidas AG stock appears to be undervalued.
The current stock price of CHF147.80 is trading 31.3% below its estimated GF Value™ of CHF215.23.
GuruFocus considers adidas AG to be Significantly Undervalued.
Key valuation signals for XSWX:ADS:
Degree of Operating Leverage: 2.71
GF Value™: CHF215.23 vs. price of CHF147.80 (31.3% below fair value)
Industry Position: 152.1% above the Manufacturing - Apparel & Accessories median (#668 of 1020)
No single metric tells the full story. See the XSWX:ADS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Adidas designs, develops, produces, and markets athletic and leisure apparel, footwear, accessories, and sports equipment. Under its eponymous brand, it produces apparel for competitive athletics, casual activewear, and casual fashion. Adidas sells its products in more than 160 countries through about 2,000 owned retail stores, 15,000 Adidas-branded franchise stores (including about 8,000 in China), 150,000 wholesale doors, and an owned e-commerce site that is available in 67 countries. The company was founded in 1949 in Germany.
83GF Score
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