BWE Drilling (ASX:BWE) Debt-to-EBITDA : 4.10 (As of Dec. 2024)

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ASX:BWE BWE Drilling Ltd ASX:BWE
30 GF Score
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What is BWE Drilling Debt-to-EBITDA?

BWE Drilling ASX:BWE 30 Debt-to-EBITDA is 4.10 as of Dec. 2024. GuruFocus rates ASX:BWE with a GF Score™ of 30/100.

Debt-to-EBITDA measures a company's ability to pay off its debt.

BWE Drilling's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2024 was A$9.62 Mil. BWE Drilling's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2024 was A$14.56 Mil. BWE Drilling's annualized EBITDA for the quarter that ended in Dec. 2024 was A$5.89 Mil. BWE Drilling's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2024 was 4.10.

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.

The historical rank and industry rank for BWE Drilling's Debt-to-EBITDA or its related term are showing as below:

ASX:BWE's Debt-to-EBITDA is not ranked *
in the Construction industry.
Industry Median: 2.15
* Ranked among companies with meaningful Debt-to-EBITDA only.

BWE Drilling  (ASX:BWE) Debt-to-EBITDA Explanation

In the calculation of Debt-to-EBITDA, we use the total of Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation divided by EBITDA. In some calculations, Total Liabilities is used to for calculation.


Be Aware

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.

According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.


BWE Drilling Debt-to-EBITDA Related Terms


BWE Drilling Debt-to-EBITDA Historical Data

* Premium members only.

The historical data trend for BWE Drilling's Debt-to-EBITDA 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.

BWE Drilling Debt-to-EBITDA Chart

BWE Drilling Annual Data
Trend Jun21 Jun22 Jun23 Jun24
Debt-to-EBITDA
1.80 1.13 1.91 6.06

BWE Drilling Semi-Annual Data
Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24
Debt-to-EBITDA Get a 7-Day Free Trial Premium Member Only 2.87 1.35 1.82 -4.04 4.10

ASX:BWE vs PWR, FIX, EME: Debt-to-EBITDA Comparison

For the Engineering & Construction subindustry, BWE Drilling's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA 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.


BWE Drilling Debt-to-EBITDA vs Construction Industry

For the Construction industry and Industrials sector, BWE Drilling's Debt-to-EBITDA distribution charts can be found below:

* The bar in red indicates where BWE Drilling's Debt-to-EBITDA falls into.


ASX:BWE
30GF Score
BWE Drilling Ltd ASX:BWE
Debt-to-EBITDA is just one metric. See GF Score™, valuation, warning signs, and more.
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BWE Drilling Debt-to-EBITDA Calculation

Debt-to-EBITDA measures a company's ability to pay off its debt.

BWE Drilling's Debt-to-EBITDA for the fiscal year that ended in Jun. 2024 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(23.643 + 2.878) / 4.379
=6.06

BWE Drilling's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2024 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(9.617 + 14.555) / 5.894
=4.10

* 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.

In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data, the EBITDA data used here is two times the quarterly (Dec. 2024) EBITDA data.

Frequently Asked Questions Learn more about Debt-to-EBITDA →
What does a Debt-to-EBITDA of 4.10 mean?
BWE Drilling (ASX:BWE) has a Debt-to-EBITDA of 4.10 as of Dec. 2024. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on BWE Drilling.
Is BWE Drilling's Debt-to-EBITDA too high?
BWE Drilling's current Debt-to-EBITDA is 4.10. The Construction industry median Debt-to-EBITDA is 2.15. BWE Drilling's value of 4.10 is 90.7% above this industry median. Overall, BWE Drilling has a GF Score™ of 30/100, reflecting its overall financial health beyond just this single metric.
How does BWE Drilling's Debt-to-EBITDA compare to PWR and FIX?
BWE Drilling's Debt-to-EBITDA of 4.10 can be compared against companies in the Construction industry. The industry median Debt-to-EBITDA is 2.15. BWE Drilling's value of 4.10 is 90.7% 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 Debt-to-EBITDA for a Construction company?
The median Debt-to-EBITDA among Construction companies is 2.15, based on 1,404 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. BWE Drilling's current Debt-to-EBITDA of 4.10 is 90.7% 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 Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on BWE Drilling. For the Construction industry, the median Debt-to-EBITDA is 2.15 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. BWE Drilling's current Debt-to-EBITDA is 4.10. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is BWE Drilling stock overvalued right now?
BWE Drilling (ASX:BWE) has a current Debt-to-EBITDA of 4.10. The current Debt-to-EBITDA is 4.10 and 90.7% above the Construction industry median of 2.15. BWE Drilling's overall GF Score™ is 30/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For BWE Drilling (ASX:BWE), the current Debt-to-EBITDA is 4.10 as of Dec. 2024. 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.

BWE Drilling Business Description

Address 76 Hasler Road, Level 2, Osborne Park, Perth, WA, AUS, 6017
BWE Drilling Ltd, formerly Dynamic Group Holdings Ltd is a supplier of drilling and blasting services to clients in the mining and construction sectors in Western Australia. It has extensive experience in areas of drilling and blasting, exploration and mine site resource definitions and grade control drilling, and water drilling, including deep artesian bores.
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Debt-to-EBITDA is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

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