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Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue.
Axon Enterprise's Degree of Operating Leverage for the quarter that ended in Jun. 2026 was 0.25. The higher Degree of Operating Leverage, the higher operating risk the company will take.
The industry rank for Axon Enterprise's Degree of Operating Leverage or its related term are showing as below:
XSWX:AXON's Degree of Operating Leverage is ranked better than 62.16% of 333
companies
in the Aerospace & Defense industry
Industry Median: 1.12
vs XSWX:AXON: 0.25
Axon Enterprise (XSWX:AXON) 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.
Axon Enterprise Degree of Operating Leverage Related Terms
Axon Enterprise Degree of Operating Leverage Historical Data
* Premium members only.
The historical data trend for Axon Enterprise'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.
Axon Enterprise Degree of Operating Leverage Chart
XSWX:AXON vs HEI.A, RKLB, CW: Degree of Operating Leverage Comparison
For the Aerospace & Defense subindustry, Axon Enterprise'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.
Axon Enterprise Degree of Operating Leverage vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Axon Enterprise's Degree of Operating Leverage distribution charts can be found below:
* The bar in red indicates where Axon Enterprise'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 0.25 mean?
Axon Enterprise (XSWX:AXON) has a Degree of Operating Leverage of 0.25 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 Axon Enterprise and its competitors. According to the industry distribution chart, Axon Enterprise ranks #126 out of 333 companies in the Aerospace & Defense industry, placing it in the top 37.8%.
Is Axon Enterprise's Degree of Operating Leverage too high?
Axon Enterprise's current Degree of Operating Leverage is 0.25. The Aerospace & Defense industry median Degree of Operating Leverage is 1.12. Axon Enterprise's value of 0.25 is 77.7% below this industry median. Based on the distribution chart, Axon Enterprise ranks #126 out of 333 companies in the Aerospace & Defense industry, which is above the industry midpoint. Overall, Axon Enterprise has a GF Score™ of 86/100, reflecting its overall financial health beyond just this single metric.
How does Axon Enterprise's Degree of Operating Leverage compare to HEI.A and RKLB?
According to the Aerospace & Defense industry distribution chart, Axon Enterprise ranks #126 out of 333 companies for Degree of Operating Leverage. This puts Axon Enterprise in the upper half of its industry. The industry median Degree of Operating Leverage is 1.12. Axon Enterprise's value of 0.25 is 77.7% below 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 an Aerospace & Defense company?
The median Degree of Operating Leverage among Aerospace & Defense companies is 1.12, based on 333 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. Axon Enterprise's current Degree of Operating Leverage of 0.25 is 77.7% below 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 Axon Enterprise and its competitors. For the Aerospace & Defense industry, the median Degree of Operating Leverage is 1.12 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Axon Enterprise's current Degree of Operating Leverage is 0.25. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Axon Enterprise stock overvalued right now?
Axon Enterprise (XSWX:AXON) has a current Degree of Operating Leverage of 0.25. The stock's GF Value™ is CHF511.25, compared to a current price of CHF494.10 — trading 3.4% below its estimated fair value. The current Degree of Operating Leverage is 0.25 and 77.7% below the Aerospace & Defense industry median of 1.12. Axon Enterprise's overall GF Score™ is 86/100 with 4 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 Axon Enterprise (XSWX:AXON), the current Degree of Operating Leverage is 0.25 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 Axon Enterprise (XSWX:AXON) Overvalued in 2026?
Based on GuruFocus' analysis, Axon Enterprise stock appears to be undervalued.
The current stock price of CHF494.10 is trading 3.4% below its estimated GF Value™ of CHF511.25.
Key valuation signals for XSWX:AXON:
Degree of Operating Leverage: 0.25
GF Value™: CHF511.25 vs. price of CHF494.10 (3.4% below fair value)
Industry Position: 77.7% below the Aerospace & Defense median (#126 of 333)
No single metric tells the full story. See the XSWX:AXON stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Axon Enterprise Inc is building a public safety operating system by integrating a suite of hardware devices and cloud software solutions. The company's suite includes cloud-hosted digital evidence management solutions, TASER energy devices, drones and robotic security, and training solutions. Its operation comprises of two operating segments, Software and Services, and Connected Devices. The company generates the majority of its revenue from the Connected Devices segment, which is engaged in developing, manufacturing, and selling fully integrated hardware solutions such as conducted energy devices sold under the TASER brand, body cameras, fixed and in-car cameras, drone and counter-drone technologies, and a broad ecosystem of accessories, extended warranties and related hardware products.
86GF Score
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