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Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue.
HORNBACH Holding AG and Co KGaA's Degree of Operating Leverage for the quarter that ended in May. 2026 was -2.66. The higher Degree of Operating Leverage, the higher operating risk the company will take.
The industry rank for HORNBACH Holding AG and Co KGaA's Degree of Operating Leverage or its related term are showing as below:
XSWX:HBH's Degree of Operating Leverage is ranked better than 79.06% of 1103
companies
in the Retail - Cyclical industry
Industry Median: 1.22
vs XSWX:HBH: -2.66
HORNBACH Holding AG and Co KGaA (XSWX:HBH) 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.
HORNBACH Holding AG and Co KGaA Degree of Operating Leverage Related Terms
HORNBACH Holding AG and Co KGaA Degree of Operating Leverage Historical Data
* 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.
HORNBACH Holding AG and Co KGaA Degree of Operating Leverage Chart
XSWX:HBH vs HD, LOW, FND: Degree of Operating Leverage Comparison
For the Home Improvement Retail subindustry, HORNBACH Holding AG and Co 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.
HORNBACH Holding AG and Co KGaA Degree of Operating Leverage vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, HORNBACH Holding AG and Co KGaA's Degree of Operating Leverage distribution charts can be found below:
* The bar in red indicates where HORNBACH Holding AG and Co 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 -2.66 mean?
HORNBACH Holding AG and Co KGaA (XSWX:HBH) has a Degree of Operating Leverage of -2.66 as of May. 2026. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for HORNBACH Holding AG and Co KGaA and its competitors. According to the industry distribution chart, HORNBACH Holding AG and Co KGaA ranks #231 out of 1103 companies in the Retail - Cyclical industry, placing it in the top 20.9%.
Is HORNBACH Holding AG and Co KGaA's Degree of Operating Leverage too high?
HORNBACH Holding AG and Co KGaA's current Degree of Operating Leverage is -2.66. Based on the distribution chart, HORNBACH Holding AG and Co KGaA ranks #231 out of 1103 companies in the Retail - Cyclical industry, which is in the top quartile — a strong position relative to peers. Overall, HORNBACH Holding AG and Co KGaA has a GF Score™ of 72/100, reflecting its overall financial health beyond just this single metric.
How does HORNBACH Holding AG and Co KGaA's Degree of Operating Leverage compare to HD and LOW?
According to the Retail - Cyclical industry distribution chart, HORNBACH Holding AG and Co KGaA ranks #231 out of 1103 companies for Degree of Operating Leverage. This places HORNBACH Holding AG and Co KGaA in the top 21% of its industry — outperforming the majority of peers. The industry median Degree of Operating Leverage is 1.22. 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 Retail - Cyclical company?
The median Degree of Operating Leverage among Retail - Cyclical companies is 1.22, based on 1,103 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. 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 HORNBACH Holding AG and Co KGaA and its competitors. For the Retail - Cyclical industry, the median Degree of Operating Leverage is 1.22 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. HORNBACH Holding AG and Co KGaA's current Degree of Operating Leverage is -2.66. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is HORNBACH Holding AG and Co KGaA stock overvalued right now?
HORNBACH Holding AG and Co KGaA (XSWX:HBH) has a current Degree of Operating Leverage of -2.66. The stock's GF Value™ is CHF78.80, compared to a current price of CHF79.30 — trading 0.6% above its estimated fair value. The current Degree of Operating Leverage is -2.66. HORNBACH Holding AG and Co KGaA's overall GF Score™ is 72/100 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 HORNBACH Holding AG and Co KGaA (XSWX:HBH), the current Degree of Operating Leverage is -2.66 as of May. 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 HORNBACH Holding AG and Co KGaA (XSWX:HBH) Overvalued in 2026?
Based on GuruFocus' analysis, HORNBACH Holding AG and Co KGaA stock appears to be overvalued.
The current stock price of CHF79.30 is trading 0.6% above its estimated GF Value™ of CHF78.80.
Key valuation signals for XSWX:HBH:
Degree of Operating Leverage: -2.66
GF Value™: CHF78.80 vs. price of CHF79.30 (0.6% above fair value)
No single metric tells the full story. See the XSWX:HBH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
HORNBACH Holding AG and Co KGaA and its subsidiaries are involved in the business of Retail and Real estate segments. The company's operating segment include HORNBACH Baumarkt subgroup; HORNBACH Baustoff Union GmbH subgroup, and HORNBACH Immobilien AG subgroup. It generates maximum revenue from the HORNBACH Baumarkt subgroup segment. Geographically, it derives a majority of revenue from Germany. Products are structured in the following divisions: Hardware/Electrical, Paint/Wallpaper/Flooring, Construction Materials/Timber/Prefabricated Components, Sanitary/Tiles, and Garden. The company operates in Germany and other European countries.
72GF Score
Get the complete analysis for XSWX:HBH
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