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Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue.
Fresenius SE KGaA's Degree of Operating Leverage for the quarter that ended in Mar. 2026 was 2.93. The higher Degree of Operating Leverage, the higher operating risk the company will take.
The industry rank for Fresenius SE KGaA's Degree of Operating Leverage or its related term are showing as below:
XSWX:FRE's Degree of Operating Leverage is ranked worse than 72.88% of 649
companies
in the Healthcare Providers & Services industry
Industry Median: 0.77
vs XSWX:FRE: 2.93
Fresenius SE KGaA (XSWX:FRE) 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.
Fresenius SE KGaA Degree of Operating Leverage Related Terms
Fresenius SE KGaA Degree of Operating Leverage Historical Data
* Premium members only.
The historical data trend for Fresenius 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.
Fresenius SE KGaA Degree of Operating Leverage Chart
XSWX:FRE vs HCA, THC, DVA: Degree of Operating Leverage Comparison
For the Medical Care Facilities subindustry, Fresenius 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.
Fresenius SE KGaA Degree of Operating Leverage vs Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, Fresenius SE KGaA's Degree of Operating Leverage distribution charts can be found below:
* The bar in red indicates where Fresenius 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 2.93 mean?
Fresenius SE KGaA (XSWX:FRE) has a Degree of Operating Leverage of 2.93 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 Fresenius SE KGaA and its competitors. According to the industry distribution chart, Fresenius SE KGaA ranks #473 out of 649 companies in the Healthcare Providers & Services industry, placing it in the top 72.9%.
Is Fresenius SE KGaA's Degree of Operating Leverage too high?
Fresenius SE KGaA's current Degree of Operating Leverage is 2.93. The Healthcare Providers & Services industry median Degree of Operating Leverage is 0.77. Fresenius SE KGaA's value of 2.93 is 280.5% above this industry median. Based on the distribution chart, Fresenius SE KGaA ranks #473 out of 649 companies in the Healthcare Providers & Services industry, which is below the industry midpoint. Overall, Fresenius SE KGaA has a GF Score™ of 71/100, reflecting its overall financial health beyond just this single metric.
How does Fresenius SE KGaA's Degree of Operating Leverage compare to HCA and THC?
According to the Healthcare Providers & Services industry distribution chart, Fresenius SE KGaA ranks #473 out of 649 companies for Degree of Operating Leverage. This places Fresenius SE KGaA in the lower half of its industry. The industry median Degree of Operating Leverage is 0.77. Fresenius SE KGaA's value of 2.93 is 280.5% 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 Healthcare Providers & Services company?
The median Degree of Operating Leverage among Healthcare Providers & Services companies is 0.77, based on 649 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. Fresenius SE KGaA's current Degree of Operating Leverage of 2.93 is 280.5% 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 Fresenius SE KGaA and its competitors. For the Healthcare Providers & Services industry, the median Degree of Operating Leverage is 0.77 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Fresenius SE KGaA's current Degree of Operating Leverage is 2.93. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Fresenius SE KGaA stock overvalued right now?
Fresenius SE KGaA (XSWX:FRE) has a current Degree of Operating Leverage of 2.93. The stock's GF Value™ is CHF34.46, compared to a current price of CHF39.27 — trading 14% above its estimated fair value. The current Degree of Operating Leverage is 2.93 and 280.5% above the Healthcare Providers & Services industry median of 0.77. Fresenius SE KGaA's overall GF Score™ is 71/100 with 5 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 Fresenius SE KGaA (XSWX:FRE), the current Degree of Operating Leverage is 2.93 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 Fresenius SE KGaA (XSWX:FRE) Overvalued in 2026?
Based on GuruFocus' analysis, Fresenius SE KGaA stock appears to be overvalued.
The current stock price of CHF39.27 is trading 14% above its estimated GF Value™ of CHF34.46.
Key valuation signals for XSWX:FRE:
Degree of Operating Leverage: 2.93
GF Value™: CHF34.46 vs. price of CHF39.27 (14% above fair value)
Industry Position: 280.5% above the Healthcare Providers & Services median (#473 of 649)
No single metric tells the full story. See the XSWX:FRE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Fresenius is a healthcare holding company based in Germany. The company owns a minority stake in dialysis service provider and equipment manufacturer Fresenius Medical Care. The Kabi segment manufactures intravenous drugs, nutrition products, infusion and transfusion therapies, and related pumps. The Helios segment operates private hospitals primarily in Germany and Spain.
71GF Score
Get the complete analysis for XSWX:FRE
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