Emperor Oil (FRA:8CV) Debt-to-EBITDA : 3.58 (As of Jul. 2017)

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

What is Emperor Oil Debt-to-EBITDA?

Emperor Oil FRA:8CV Debt-to-EBITDA is 3.58 as of Jul. 2017. The stock has 3 warning signs investors should review.

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

Emperor Oil's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Jul. 2017 was €1.56 Mil. Emperor Oil's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jul. 2017 was €0.00 Mil. Emperor Oil's annualized EBITDA for the quarter that ended in Jul. 2017 was €0.44 Mil. Emperor Oil's annualized Debt-to-EBITDA for the quarter that ended in Jul. 2017 was 3.58.

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

FRA:8CV's Debt-to-EBITDA is not ranked *
in the Oil & Gas industry.
Industry Median: 1.96
* Ranked among companies with meaningful Debt-to-EBITDA only.

Emperor Oil  (FRA:8CV) 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.


Emperor Oil Debt-to-EBITDA Related Terms


Emperor Oil Debt-to-EBITDA Historical Data

* Premium members only.

The historical data trend for Emperor Oil'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.

Emperor Oil Debt-to-EBITDA Chart

Emperor Oil Annual Data
Trend Jan08 Jan09 Jan10 Jan11 Jan12 Jan13 Jan14 Jan15 Jan16 Jan17
Debt-to-EBITDA
Get a 7-Day Free Trial Premium Member Only Premium Member Only -0.25 -0.31 -0.47 -1.83 -27.95

Emperor Oil Quarterly Data
Oct12 Jan13 Apr13 Jul13 Oct13 Jan14 Apr14 Jul14 Oct14 Jan15 Apr15 Jul15 Oct15 Jan16 Apr16 Jul16 Oct16 Jan17 Apr17 Jul17
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 -4.21 -8.33 -4.80 -4.50 3.58

FRA:8CV vs AREXQ, LRDC, AEGG: Debt-to-EBITDA Comparison

For the Oil & Gas E&P subindustry, Emperor Oil'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.


Emperor Oil Debt-to-EBITDA vs Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Emperor Oil's Debt-to-EBITDA distribution charts can be found below:

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



Emperor Oil Debt-to-EBITDA Calculation

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

Emperor Oil's Debt-to-EBITDA for the fiscal year that ended in Jan. 2017 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(1.593 + 0) / -0.057
=-27.95

Emperor Oil's annualized Debt-to-EBITDA for the quarter that ended in Jul. 2017 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(1.56 + 0) / 0.436
=3.58

* 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 (Jul. 2017) EBITDA data.

Frequently Asked Questions Learn more about Debt-to-EBITDA →
What does a Debt-to-EBITDA of 3.58 mean?
Emperor Oil (FRA:8CV) has a Debt-to-EBITDA of 3.58 as of Jul. 2017. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Emperor Oil.
Is Emperor Oil's Debt-to-EBITDA too high?
Emperor Oil's current Debt-to-EBITDA is 3.58. The Oil & Gas industry median Debt-to-EBITDA is 1.96. Emperor Oil's value of 3.58 is 82.7% above this industry median.
How does Emperor Oil's Debt-to-EBITDA compare to AREXQ and LRDC?
Emperor Oil's Debt-to-EBITDA of 3.58 can be compared against companies in the Oil & Gas industry. The industry median Debt-to-EBITDA is 1.96. Emperor Oil's value of 3.58 is 82.7% 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 an Oil & Gas company?
The median Debt-to-EBITDA among Oil & Gas companies is 1.96, based on 718 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. Emperor Oil's current Debt-to-EBITDA of 3.58 is 82.7% 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 Emperor Oil. For the Oil & Gas industry, the median Debt-to-EBITDA is 1.96 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Emperor Oil's current Debt-to-EBITDA is 3.58. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Emperor Oil stock overvalued right now?
Emperor Oil (FRA:8CV) has a current Debt-to-EBITDA of 3.58. The current Debt-to-EBITDA is 3.58 and 82.7% above the Oil & Gas industry median of 1.96. 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 Emperor Oil (FRA:8CV), the current Debt-to-EBITDA is 3.58 as of Jul. 2017. 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.

Emperor Oil Business Description

Industry EnergyOil & Gas
Address 2750 3rd Avenue NE, Suite 201, Calgary, AB, CAN, T2A 2L5
Emperor Oil Ltd is a Canadian based exploration and development company. Its principal business activities include the acquisition, exploration, and development of oil and gas properties. Further, it focuses on the exploration and near-term production projects in Sudan.