Hebei Yichen Industrial Group (FRA:HE2) Debt-to-EBITDA : 1.08 (As of Dec. 2025) — 18% Below Median

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.

FRA:HE2 Hebei Yichen Industrial Group Corp Ltd FRA:HE2
70 GF Score
Price €0.03
GF Value €0.45
Valuation Possible Value Trap
! 3 Warning Signs
View Full Analysis

What is Hebei Yichen Industrial Group Debt-to-EBITDA?

Hebei Yichen Industrial Group FRA:HE2 70 Debt-to-EBITDA is 1.08 as of Dec. 2025, which is 18% below its 10-year median of 1.31. GuruFocus rates FRA:HE2 with a GF Score™ of 70/100 and a GF Value™ of €0.45 (Possible Value Trap). The stock has 3 warning signs investors should review. Among 873 Transportation companies, Hebei Yichen Industrial Group ranks better than 83.28% on this metric.

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

Hebei Yichen Industrial Group's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2025 was €32.8 Mil. Hebei Yichen Industrial Group's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2025 was €42.7 Mil. Hebei Yichen Industrial Group's annualized EBITDA for the quarter that ended in Dec. 2025 was €70.2 Mil. Hebei Yichen Industrial Group's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2025 was 1.07.

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 Hebei Yichen Industrial Group's Debt-to-EBITDA or its related term are showing as below:

FRA:HE2' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.55   Med: 1.31   Max: 31.14
Current: 0.72

During the past 13 years, the highest Debt-to-EBITDA Ratio of Hebei Yichen Industrial Group was 31.14. The lowest was 0.55. And the median was 1.31.

FRA:HE2's Debt-to-EBITDA is ranked better than
83.28% of 873 companies
in the Transportation industry
Industry Median: 2.62 vs FRA:HE2: 0.72

Hebei Yichen Industrial Group  (FRA:HE2) 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.


Hebei Yichen Industrial Group Debt-to-EBITDA Related Terms


Hebei Yichen Industrial Group Debt-to-EBITDA Historical Data

* Premium members only.

The historical data trend for Hebei Yichen Industrial Group'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.

Hebei Yichen Industrial Group Debt-to-EBITDA Chart

Hebei Yichen Industrial Group Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Debt-to-EBITDA
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.12 2.73 4.35 31.14 1.50

Hebei Yichen Industrial Group Semi-Annual Data
Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25 Jun26
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 -5.42 116.29 4.98 1.08 6.51

FRA:HE2 vs UNP, CSX, NSC: Debt-to-EBITDA Comparison

For the Railroads subindustry, Hebei Yichen Industrial Group'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.


Hebei Yichen Industrial Group Debt-to-EBITDA vs Transportation Industry

For the Transportation industry and Industrials sector, Hebei Yichen Industrial Group's Debt-to-EBITDA distribution charts can be found below:

* The bar in red indicates where Hebei Yichen Industrial Group's Debt-to-EBITDA falls into.


FRA:HE2
70GF Score
Hebei Yichen Industrial Group Corp Ltd FRA:HE2
Debt-to-EBITDA is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Hebei Yichen Industrial Group Debt-to-EBITDA Calculation

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

Hebei Yichen Industrial Group's Debt-to-EBITDA for the fiscal year that ended in Dec. 2025 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(32.752 + 42.7) / 50.43
=1.50

Hebei Yichen Industrial Group's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2025 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(32.752 + 42.7) / 70.21
=1.07

* 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.

Frequently Asked Questions Learn more about Debt-to-EBITDA →
What does a Debt-to-EBITDA of 1.08 mean?
Hebei Yichen Industrial Group (FRA:HE2) has a Debt-to-EBITDA of 1.08 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 Hebei Yichen Industrial Group. This is 18% below median its historical median of 1.31. Over the past decade, Hebei Yichen Industrial Group's Debt-to-EBITDA has ranged from 0.55 to 31.14. According to the industry distribution chart, Hebei Yichen Industrial Group ranks #146 out of 873 companies in the Transportation industry, placing it in the top 16.7%.
Is Hebei Yichen Industrial Group's Debt-to-EBITDA too high?
Hebei Yichen Industrial Group's current Debt-to-EBITDA of 1.08 is 18% below median its 10-year median of 1.31. Over the past 10 years, this metric has ranged from a low of 0.55 to a high of 31.14. The Transportation industry median Debt-to-EBITDA is 2.62. Hebei Yichen Industrial Group's value of 1.08 is 58.8% below this industry median. Based on the distribution chart, Hebei Yichen Industrial Group ranks #146 out of 873 companies in the Transportation industry, which is in the top quartile — a strong position relative to peers. Overall, Hebei Yichen Industrial Group has a GF Score™ of 70/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Hebei Yichen Industrial Group's Debt-to-EBITDA compare to UNP and CSX?
According to the Transportation industry distribution chart, Hebei Yichen Industrial Group ranks #146 out of 873 companies for Debt-to-EBITDA. This places Hebei Yichen Industrial Group in the top 17% of its industry — outperforming the majority of peers. The industry median Debt-to-EBITDA is 2.62. Hebei Yichen Industrial Group's value of 1.08 is 58.8% below this benchmark. Historically, Hebei Yichen Industrial Group's own Debt-to-EBITDA has ranged from 0.55 to 31.14 over the past decade. While the company's 10-year median is 1.31 vs. the industry median of 2.62, Hebei Yichen Industrial Group 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 a Transportation company?
The median Debt-to-EBITDA among Transportation companies is 2.62, based on 873 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. Hebei Yichen Industrial Group's current Debt-to-EBITDA of 1.08 is 58.8% 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 Hebei Yichen Industrial Group. For the Transportation industry, the median Debt-to-EBITDA is 2.62 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hebei Yichen Industrial Group's current Debt-to-EBITDA is 1.08, which is 18% below median its own 10-year median of 1.31. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hebei Yichen Industrial Group stock overvalued right now?
Based on GuruFocus' analysis, Hebei Yichen Industrial Group (FRA:HE2) is currently considered Possible Value Trap. The stock's GF Value™ is €0.45, compared to a current price of €0.03 — trading 94.2% below its estimated fair value. The current Debt-to-EBITDA is 1.08, which is 18% below median its 10-year median of 1.31 and 58.8% below the Transportation industry median of 2.62. Hebei Yichen Industrial Group's overall GF Score™ is 70/100 with 3 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 Hebei Yichen Industrial Group (FRA:HE2), the current Debt-to-EBITDA is 1.08 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 Hebei Yichen Industrial Group (FRA:HE2) Overvalued in 2026?

Based on GuruFocus' analysis, Hebei Yichen Industrial Group stock appears to be undervalued. The current stock price of €0.03 is trading 94.2% below its estimated GF Value™ of €0.45. GuruFocus considers Hebei Yichen Industrial Group to be Possible Value Trap.

Key valuation signals for FRA:HE2:

  • Debt-to-EBITDA: 1.08 (18% below median its 10-year median of 1.31)
  • GF Value™: €0.45 vs. price of €0.03 (94.2% below fair value)
  • GF Score™: 70/100 with 3 warning signs
  • Industry Position: 58.8% below the Transportation median (#146 of 873)

No single metric tells the full story. See the FRA:HE2 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Hebei Yichen Industrial Group Business Description

Other Exchanges 01596:Hong Kong
Address No. 1 Yichen North Street, Gaocheng District, Hebei Province, Shijiazhuang, CHN
Hebei Yichen Industrial Group Corp Ltd is engaged in research and development, manufacturing and sales of rail fastening system products, welding wire products and railway sleeper products. Its products include Spring bar IV fastening system, Spring bar V fastening system, WJ-7 fastening system, DT-VI2 fastening system, WJ-2 fastening system, Double layer non-linear shock absorber fastening system, among others. It operates in three business segments, including rail fastening system products; welding wire products; and railway sleeper products.
70GF Score

Get the complete analysis for FRA:HE2

Debt-to-EBITDA is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€0.03
Price
€0.45
GF Value