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Sumitomo Heavy IndustriesFRA:SSM1 +3.18%78 Debt-to-EBITDA is 2.83 as of Mar. 2026, which is 110% above its 10-year median of 1.35. GuruFocus rates FRA:SSM1 with a GF Score™ of 78/100 and a GF Value™ of €18.96 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 2,332 Industrial Products companies, Sumitomo Heavy Industries ranks worse than 65.87% 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 Sumitomo Heavy Industries's Debt-to-EBITDA or its related term are showing as below:
FRA:SSM1'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.78 Med: 1.35 Max: 3.81
Current: 3.02
During the past 13 years, the highest Debt-to-EBITDA Ratio of Sumitomo Heavy Industries was 3.81. The lowest was 0.78. And the median was 1.35.
FRA:SSM1's Debt-to-EBITDA is ranked worse than 65.87% of 2332
companies
in the Industrial Products industry
Industry Median: 1.695
vs FRA:SSM1: 3.02
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.
Sumitomo Heavy Industries Debt-to-EBITDA Related Terms
Sumitomo Heavy Industries Debt-to-EBITDA Historical Data
* 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.
FRA:SSM1 vs GEV, ETN, PH: Debt-to-EBITDA Comparison
For the Specialty Industrial Machinery subindustry, Sumitomo Heavy Industries'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.
Sumitomo Heavy Industries Debt-to-EBITDA vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Sumitomo Heavy Industries's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Sumitomo Heavy Industries'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 four times the quarterly (Mar. 2026) EBITDA data.
Sumitomo Heavy Industries (FRA:SSM1) has a Debt-to-EBITDA of 2.83 as of Mar. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Sumitomo Heavy Industries. This is 110% above median its historical median of 1.35. Over the past decade, Sumitomo Heavy Industries' Debt-to-EBITDA has ranged from 0.78 to 3.81. According to the industry distribution chart, Sumitomo Heavy Industries ranks #1536 out of 2332 companies in the Industrial Products industry, placing it in the top 65.9%.
Is Sumitomo Heavy Industries' Debt-to-EBITDA too high?
Sumitomo Heavy Industries' current Debt-to-EBITDA of 2.83 is 110% above median its 10-year median of 1.35. Over the past 10 years, this metric has ranged from a low of 0.78 to a high of 3.81. The Industrial Products industry median Debt-to-EBITDA is 1.70. Sumitomo Heavy Industries' value of 2.83 is 67% above this industry median. Based on the distribution chart, Sumitomo Heavy Industries ranks #1536 out of 2332 companies in the Industrial Products industry, which is below the industry midpoint. Overall, Sumitomo Heavy Industries has a GF Score™ of 78/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Sumitomo Heavy Industries' Debt-to-EBITDA compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Sumitomo Heavy Industries ranks #1536 out of 2332 companies for Debt-to-EBITDA. This places Sumitomo Heavy Industries in the lower half of its industry. The industry median Debt-to-EBITDA is 1.70. Sumitomo Heavy Industries' value of 2.83 is 67% above this benchmark. Historically, Sumitomo Heavy Industries' own Debt-to-EBITDA has ranged from 0.78 to 3.81 over the past decade. While the company's 10-year median is 1.35 vs. the industry median of 1.70, Sumitomo Heavy Industries 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 an Industrial Products company?
The median Debt-to-EBITDA among Industrial Products companies is 1.70, based on 2,332 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. Sumitomo Heavy Industries's current Debt-to-EBITDA of 2.83 is 67% 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 Sumitomo Heavy Industries. For the Industrial Products industry, the median Debt-to-EBITDA is 1.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sumitomo Heavy Industries's current Debt-to-EBITDA is 2.83, which is 110% above median its own 10-year median of 1.35. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sumitomo Heavy Industries stock overvalued right now?
Based on GuruFocus' analysis, Sumitomo Heavy Industries (FRA:SSM1) is currently considered Significantly Overvalued. The stock's GF Value™ is €18.96, compared to a current price of €26.64 — trading 40.5% above its estimated fair value. The current Debt-to-EBITDA is 2.83, which is 110% above median its 10-year median of 1.35 and 67% above the Industrial Products industry median of 1.70. Sumitomo Heavy Industries' overall GF Score™ is 78/100 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 Sumitomo Heavy Industries (FRA:SSM1), the current Debt-to-EBITDA is 2.83 as of Mar. 2026. 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 Sumitomo Heavy Industries (FRA:SSM1) Overvalued in 2026?
Based on GuruFocus' analysis, Sumitomo Heavy Industries stock appears to be overvalued.
The current stock price of €26.64 is trading 40.5% above its estimated GF Value™ of €18.96.
GuruFocus considers Sumitomo Heavy Industries to be Significantly Overvalued.
Key valuation signals for FRA:SSM1:
Debt-to-EBITDA: 2.83 (110% above median its 10-year median of 1.35)
GF Value™: €18.96 vs. price of €26.64 (40.5% above fair value)
Industry Position: 67% above the Industrial Products median (#1536 of 2332)
No single metric tells the full story. See the FRA:SSM1 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sumitomo Heavy Industries Ltd manufactures and sells mechanical components. The company operates through four segments. The Energy & Lifelines segment covers power generation equipment, boilers, turbines, pumps, water treatment systems, ships, and food machinery. Industrial Machinery includes plastic and film processing machinery, cryogenic refrigerators, semiconductor equipment, accelerators, medical devices, forging presses, machine tools, and defense equipment. Logistics & Construction handles excavators, cranes, road machinery, logistics systems, and parking systems. Mechatronics provides gear reducers, motors, inverters, laser processing systems, and control devices, while Others include real estate and software.
78GF Score
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Debt-to-EBITDA is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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