Celgene (BUE:CELG) Debt-to-EBITDA : 2.17 (As of Sep. 2019) — Near Median

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What is Celgene Debt-to-EBITDA?

Celgene BUE:CELG 10 Debt-to-EBITDA is 2.17 as of Sep. 2019, which is 9% below its 10-year median of 2.39. GuruFocus rates BUE:CELG with a GF Score™ of 10/100. The stock has 1 warning sign investors should review.

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

Celgene's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2019 was ARS83,777.15 Mil. Celgene's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2019 was ARS1,022,830.60 Mil. Celgene's annualized EBITDA for the quarter that ended in Sep. 2019 was ARS509,597.70 Mil. Celgene's annualized Debt-to-EBITDA for the quarter that ended in Sep. 2019 was 2.17.

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 Celgene's Debt-to-EBITDA or its related term are showing as below:

BUE:CELG' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.97   Med: 2.39   Max: 5.18
Current: 2.45

During the past 13 years, the highest Debt-to-EBITDA Ratio of Celgene was 5.18. The lowest was 0.97. And the median was 2.39.

BUE:CELG's Debt-to-EBITDA is not ranked
in the Drug Manufacturers industry.
Industry Median: 1.64 vs BUE:CELG: 2.45

Celgene  (BUE:CELG) 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.


Celgene Debt-to-EBITDA Related Terms


Celgene Debt-to-EBITDA Historical Data

* Premium members only.

The historical data trend for Celgene'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.

Celgene Debt-to-EBITDA Chart

Celgene Annual Data
Trend Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18
Debt-to-EBITDA
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.39 5.18 4.23 2.98 3.27

Celgene Quarterly Data
Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19
Debt-to-EBITDA Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.91 3.43 2.34 2.28 2.17

BUE:CELG vs GILD, BIIB, ACT: Debt-to-EBITDA Comparison

For the Drug Manufacturers - General subindustry, Celgene'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.


Celgene Debt-to-EBITDA vs Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Celgene's Debt-to-EBITDA distribution charts can be found below:

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



Celgene Debt-to-EBITDA Calculation

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

Celgene's Debt-to-EBITDA for the fiscal year that ended in Dec. 2018 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(18890.206 + 745390.184) / 234072.652
=3.27

Celgene's annualized Debt-to-EBITDA for the quarter that ended in Sep. 2019 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(83777.147 + 1022830.598) / 509597.704
=2.17

* 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 four times the quarterly (Sep. 2019) EBITDA data.

Frequently Asked Questions Learn more about Debt-to-EBITDA →
What does a Debt-to-EBITDA of 2.17 mean?
Celgene (BUE:CELG) has a Debt-to-EBITDA of 2.17 as of Sep. 2019. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Celgene. This is near median its historical median of 2.39. Over the past decade, Celgene's Debt-to-EBITDA has ranged from 0.97 to 5.18.
Is Celgene's Debt-to-EBITDA too high?
Celgene's current Debt-to-EBITDA of 2.17 is near median its 10-year median of 2.39. Over the past 10 years, this metric has ranged from a low of 0.97 to a high of 5.18. The Drug Manufacturers industry median Debt-to-EBITDA is 1.64. Celgene's value of 2.17 is 32.3% above this industry median. Overall, Celgene has a GF Score™ of 10/100, reflecting its overall financial health beyond just this single metric.
How does Celgene's Debt-to-EBITDA compare to GILD and BIIB?
Celgene's Debt-to-EBITDA of 2.17 can be compared against companies in the Drug Manufacturers industry. The industry median Debt-to-EBITDA is 1.64. Celgene's value of 2.17 is 32.3% above this benchmark. Historically, Celgene's own Debt-to-EBITDA has ranged from 0.97 to 5.18 over the past decade. While the company's 10-year median is 2.39 vs. the industry median of 1.64, Celgene has consistently been above 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 a Drug Manufacturers company?
The median Debt-to-EBITDA among Drug Manufacturers companies is 1.64, based on 675 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. Celgene's current Debt-to-EBITDA of 2.17 is 32.3% 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 Celgene. For the Drug Manufacturers industry, the median Debt-to-EBITDA is 1.64 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Celgene's current Debt-to-EBITDA is 2.17, which is near median its own 10-year median of 2.39. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Celgene stock overvalued right now?
Celgene (BUE:CELG) has a current Debt-to-EBITDA of 2.17. The current Debt-to-EBITDA is 2.17, which is near median its 10-year median of 2.39 and 32.3% above the Drug Manufacturers industry median of 1.64. Celgene's overall GF Score™ is 10/100 with 1 warning sign 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 Celgene (BUE:CELG), the current Debt-to-EBITDA is 2.17 as of Sep. 2019. 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.

Celgene Business Description

Address 86 Morris Avenue, Summit, NJ, USA, 07901
Celgene is a biopharmaceutical firm that discovers, develops, and markets therapeutics for the treatment of cancer and immunological diseases. Celgene markets Thalomid and Pomalyst to treat multiple myeloma and Revlimid, a less toxic thalidomide derivative, to treat myelodysplastic syndromes, multiple myeloma, and mantle cell lymphoma. Acquisitions have brought MDS drug Vidaza, T-cell lymphoma drug Istodax, and cancer drug Abraxane. The firm's first immunology drug, Otezla, was approved in the U.S. in 2014. Pending acquisitions of Juno and Impact bring additional drugs for Celgene's blood cancer pipeline.