Fairway Group Holdings (FRA:FGWA) Debt-to-EBITDA : 28.91 (As of Dec. 2015)

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What is Fairway Group Holdings Debt-to-EBITDA?

Fairway Group Holdings FRA:FGWA -96.67% Debt-to-EBITDA is 28.91 as of Dec. 2015. The stock has 1 warning sign investors should review.

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

Fairway Group Holdings's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2015 was €2.5 Mil. Fairway Group Holdings's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2015 was €233.9 Mil. Fairway Group Holdings's annualized EBITDA for the quarter that ended in Dec. 2015 was €8.2 Mil. Fairway Group Holdings's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2015 was 28.91.

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 Fairway Group Holdings's Debt-to-EBITDA or its related term are showing as below:

FRA:FGWA' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0   Med: 0   Max: 56.4
Current: 56.4

During the past 6 years, the highest Debt-to-EBITDA Ratio of Fairway Group Holdings was 56.40. The lowest was 0.00. And the median was 0.00.

FRA:FGWA's Debt-to-EBITDA is not ranked
in the Retail - Defensive industry.
Industry Median: 2.225 vs FRA:FGWA: 56.40

Fairway Group Holdings  (FRA:FGWA) 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.


Fairway Group Holdings Debt-to-EBITDA Related Terms


Fairway Group Holdings Debt-to-EBITDA Historical Data

* Premium members only.

The historical data trend for Fairway Group Holdings'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.

Fairway Group Holdings Debt-to-EBITDA Chart

Fairway Group Holdings Annual Data
Trend Mar10 Mar11 Mar12 Mar13 Mar14 Mar15
Debt-to-EBITDA
Get a 7-Day Free Trial 0.00 13.08 44.98 -28.38 659.85

Fairway Group Holdings Quarterly Data
Mar10 Mar11 Jun11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15
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 856.25 15.28 -63.46 -75.25 28.91

FRA:FGWA vs IFMK: Debt-to-EBITDA Comparison

For the Grocery Stores subindustry, Fairway Group Holdings'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.


Fairway Group Holdings Debt-to-EBITDA vs Retail - Defensive Industry

For the Retail - Defensive industry and Consumer Defensive sector, Fairway Group Holdings's Debt-to-EBITDA distribution charts can be found below:

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



Fairway Group Holdings Debt-to-EBITDA Calculation

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

Fairway Group Holdings's Debt-to-EBITDA for the fiscal year that ended in Mar. 2015 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(2.541 + 235.006) / 0.36
=659.85

Fairway Group Holdings's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2015 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(2.525 + 233.933) / 8.18
=28.91

* 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 (Dec. 2015) EBITDA data.

Frequently Asked Questions Learn more about Debt-to-EBITDA →
What does a Debt-to-EBITDA of 28.91 mean?
Fairway Group Holdings (FRA:FGWA) has a Debt-to-EBITDA of 28.91 as of Dec. 2015. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Fairway Group Holdings.
Is Fairway Group Holdings' Debt-to-EBITDA too high?
Fairway Group Holdings' current Debt-to-EBITDA is 28.91. The Retail - Defensive industry median Debt-to-EBITDA is 2.23. Fairway Group Holdings' value of 28.91 is 1199.3% above this industry median.
How does Fairway Group Holdings' Debt-to-EBITDA compare to IFMK?
Fairway Group Holdings' Debt-to-EBITDA of 28.91 can be compared against companies in the Retail - Defensive industry. The industry median Debt-to-EBITDA is 2.23. Fairway Group Holdings' value of 28.91 is 1199.3% 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 Retail - Defensive company?
The median Debt-to-EBITDA among Retail - Defensive companies is 2.23, based on 256 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. Fairway Group Holdings's current Debt-to-EBITDA of 28.91 is 1199.3% 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 Fairway Group Holdings. For the Retail - Defensive industry, the median Debt-to-EBITDA is 2.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Fairway Group Holdings's current Debt-to-EBITDA is 28.91. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Fairway Group Holdings stock overvalued right now?
Fairway Group Holdings (FRA:FGWA) has a current Debt-to-EBITDA of 28.91. The current Debt-to-EBITDA is 28.91 and 1199.3% above the Retail - Defensive industry median of 2.23. 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 Fairway Group Holdings (FRA:FGWA), the current Debt-to-EBITDA is 28.91 as of Dec. 2015. 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.

Fairway Group Holdings Business Description

Fairway Group Holdings Corp along with its subsidiaries operates in the retail food industry. The company sells fresh, natural and organic products, prepared foods and hard to find specialty and gourmet offerings, along with a full assortment of conventional groceries. Its perishable product categories, which include producing, natural and organic, deli, specialty, cheese, butcher, seafood, bakery, coffee and kosher foods. The non-perishable product categories consist of conventional groceries as well as specialty foods.