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Hongli GroupHLP -1.59%41 Debt-to-EBITDA is 3.51 as of Dec. 2025, which is 154% above its 10-year median of 1.38. GuruFocus rates HLP with a GF Score™ of 41/100 and a GF Value™ of $0.35 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 495 Steel companies, Hongli Group ranks worse than 55.76% 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 Hongli Group's Debt-to-EBITDA or its related term are showing as below:
HLP'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: -20.22 Med: 1.38 Max: 4.02
Current: 3.34
During the past 7 years, the highest Debt-to-EBITDA Ratio of Hongli Group was 4.02. The lowest was -20.22. And the median was 1.38.
HLP's Debt-to-EBITDA is ranked worse than 55.76% of 495
companies
in the Steel industry
Industry Median: 2.92
vs HLP: 3.34
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.
Hongli Group Debt-to-EBITDA Related Terms
Hongli Group Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for Hongli 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.
For the Steel subindustry, Hongli 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.
Hongli Group Debt-to-EBITDA vs Steel Industry
For the Steel industry and Basic Materials sector, Hongli Group's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Hongli Group'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 two times the quarterly (Dec. 2025) EBITDA data.
Hongli Group (HLP) has a Debt-to-EBITDA of 3.51 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 Hongli Group. This is 154% above median its historical median of 1.38. According to the industry distribution chart, Hongli Group ranks #276 out of 495 companies in the Steel industry, placing it in the top 55.8%.
Is Hongli Group's Debt-to-EBITDA too high?
Hongli Group's current Debt-to-EBITDA of 3.51 is 154% above median its 10-year median of 1.38. The Steel industry median Debt-to-EBITDA is 2.92. Hongli Group's value of 3.51 is 20.2% above this industry median. Based on the distribution chart, Hongli Group ranks #276 out of 495 companies in the Steel industry, which is below the industry midpoint. Overall, Hongli Group has a GF Score™ of 41/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Hongli Group's Debt-to-EBITDA compare to ZKIN and LUD?
According to the Steel industry distribution chart, Hongli Group ranks #276 out of 495 companies for Debt-to-EBITDA. This places Hongli Group in the lower half of its industry. The industry median Debt-to-EBITDA is 2.92. Hongli Group's value of 3.51 is 20.2% above this benchmark. While the company's 10-year median is 1.38 vs. the industry median of 2.92, Hongli Group 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 Steel company?
The median Debt-to-EBITDA among Steel companies is 2.92, based on 495 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. Hongli Group's current Debt-to-EBITDA of 3.51 is 20.2% 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 Hongli Group. For the Steel industry, the median Debt-to-EBITDA is 2.92 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hongli Group's current Debt-to-EBITDA is 3.51, which is 154% above median its own 10-year median of 1.38. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hongli Group stock overvalued right now?
Based on GuruFocus' analysis, Hongli Group (HLP) is currently considered Significantly Overvalued. The stock's GF Value™ is $0.35, compared to a current price of $1.24 — trading 254.3% above its estimated fair value. The current Debt-to-EBITDA is 3.51, which is 154% above median its 10-year median of 1.38 and 20.2% above the Steel industry median of 2.92. Hongli Group's overall GF Score™ is 41/100 with 4 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 Hongli Group (HLP), the current Debt-to-EBITDA is 3.51 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 Hongli Group (HLP) Overvalued in 2026?
Based on GuruFocus' analysis, Hongli Group stock appears to be overvalued.
The current stock price of $1.24 is trading 254.3% above its estimated GF Value™ of $0.35.
GuruFocus considers Hongli Group to be Significantly Overvalued.
Key valuation signals for HLP:
Debt-to-EBITDA: 3.51 (154% above median its 10-year median of 1.38)
GF Value™: $0.35 vs. price of $1.24 (254.3% above fair value)
Industry Position: 20.2% above the Steel median (#276 of 495)
No single metric tells the full story. See the HLP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hongli Group Inc is an offshore holding company. Through its subsidiaries, it is engaged in the cold-rolled steel profile manufacturing in China. Its main business operation focuses on the design, production, deep processing, and sales of custom-made profiles for machinery and equipment in a variety of sectors, including but not limited to mining and excavation, construction, agriculture, and transportation industries. The group operates in a single segment, which manufactures and sells agricultural machinery cab assemblies, construction machinery cab assemblies, excavator cab assemblies, and special-shaped steel pipes. It generates the majority of its reveneue from PRC.
41GF Score
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