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Contact EnergyASX:CEN 59 Debt-to-EBITDA is 3.12 as of Dec. 2025, which is 5% above its 10-year median of 2.98. GuruFocus rates ASX:CEN with a GF Score™ of 59/100 and a GF Value™ of A$6.74 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 339 Utilities - Independent Power Producers companies, Contact Energy ranks better than 62.54% on this metric.
Debt-to-EBITDA measures a company's ability to pay off its debt.
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 Contact Energy's Debt-to-EBITDA or its related term are showing as below:
ASX:CEN'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: 1.54 Med: 2.98 Max: 8.7
Current: 3.32
During the past 13 years, the highest Debt-to-EBITDA Ratio of Contact Energy was 8.70. The lowest was 1.54. And the median was 2.98.
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.
Contact Energy Debt-to-EBITDA Related Terms
Contact Energy Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for Contact Energy'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.
Contact Energy Debt-to-EBITDA Competitor Comparison
For the Utilities - Renewable subindustry, Contact Energy'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.
Contact Energy Debt-to-EBITDA vs Utilities - Independent Power Producers Industry
For the Utilities - Independent Power Producers industry and Utilities sector, Contact Energy's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Contact Energy's Debt-to-EBITDA 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.
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. 2025) EBITDA data.
Contact Energy (ASX:CEN) has a Debt-to-EBITDA of 3.12 as of Dec. 2025. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Contact Energy. This is near median its historical median of 2.98. Over the past decade, Contact Energy's Debt-to-EBITDA has ranged from 1.54 to 8.70. According to the industry distribution chart, Contact Energy ranks #127 out of 339 companies in the Utilities - Independent Power Producers industry, placing it in the top 37.5%.
Is Contact Energy's Debt-to-EBITDA too high?
Contact Energy's current Debt-to-EBITDA of 3.12 is near median its 10-year median of 2.98. Over the past 10 years, this metric has ranged from a low of 1.54 to a high of 8.70. The Utilities - Independent Power Producers industry median Debt-to-EBITDA is 4.59. Contact Energy's value of 3.12 is 32% below this industry median. Based on the distribution chart, Contact Energy ranks #127 out of 339 companies in the Utilities - Independent Power Producers industry, which is above the industry midpoint. Overall, Contact Energy has a GF Score™ of 59/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Contact Energy's Debt-to-EBITDA compare to competitors?
According to the Utilities - Independent Power Producers industry distribution chart, Contact Energy ranks #127 out of 339 companies for Debt-to-EBITDA. This puts Contact Energy in the upper half of its industry. The industry median Debt-to-EBITDA is 4.59. Contact Energy's value of 3.12 is 32% below this benchmark. Historically, Contact Energy's own Debt-to-EBITDA has ranged from 1.54 to 8.70 over the past decade. While the company's 10-year median is 2.98 vs. the industry median of 4.59, Contact Energy has consistently been below the industry average. 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 an Utilities - Independent Power Producers company?
The median Debt-to-EBITDA among Utilities - Independent Power Producers companies is 4.59, based on 339 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. Contact Energy's current Debt-to-EBITDA of 3.12 is 32% 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 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 Contact Energy. For the Utilities - Independent Power Producers industry, the median Debt-to-EBITDA is 4.59 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Contact Energy's current Debt-to-EBITDA is 3.12, which is near median its own 10-year median of 2.98. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Contact Energy stock overvalued right now?
Based on GuruFocus' analysis, Contact Energy (ASX:CEN) is currently considered Modestly Overvalued. The stock's GF Value™ is A$6.74, compared to a current price of A$7.46 — trading 10.7% above its estimated fair value. The current Debt-to-EBITDA is 3.12, which is near median its 10-year median of 2.98 and 32% below the Utilities - Independent Power Producers industry median of 4.59. Contact Energy's overall GF Score™ is 59/100 with 5 warning signs to review. 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 Contact Energy (ASX:CEN), the current Debt-to-EBITDA is 3.12 as of Dec. 2025. 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 Contact Energy (ASX:CEN) Overvalued in 2026?
Based on GuruFocus' analysis, Contact Energy stock appears to be overvalued.
The current stock price of A$7.46 is trading 10.7% above its estimated GF Value™ of A$6.74.
GuruFocus considers Contact Energy to be Modestly Overvalued.
Key valuation signals for ASX:CEN:
Debt-to-EBITDA: 3.12 (near median its 10-year median of 2.98)
GF Value™: A$6.74 vs. price of A$7.46 (10.7% above fair value)
Industry Position: 32% below the Utilities - Independent Power Producers median (#127 of 339)
No single metric tells the full story. See the ASX:CEN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Contact Energy is a diversified and integrated energy company. It owns a fleet of hydro, geothermal, and gas-fired generation assets, which produce more than 25% of New Zealand's electricity. It also retails electricity and gas to nearly half a million customers.
59GF Score
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