ICP (IC Power) Debt-to-EBITDA : 6.61 (As of Sep. 2016)

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What is IC Power Debt-to-EBITDA?

IC Power ICP Debt-to-EBITDA is 6.61 as of Sep. 2016.

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

IC Power's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2016 was $363.73 Mil. IC Power's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2016 was $2,950.29 Mil. IC Power's annualized EBITDA for the quarter that ended in Sep. 2016 was $501.60 Mil. IC Power's annualized Debt-to-EBITDA for the quarter that ended in Sep. 2016 was 6.61.

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 IC Power's Debt-to-EBITDA or its related term are showing as below:

ICP's Debt-to-EBITDA is not ranked *
in the Utilities - Independent Power Producers industry.
Industry Median: 4.59
* Ranked among companies with meaningful Debt-to-EBITDA only.

IC Power  (NYSE:ICP) 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.

IC Power Debt-to-EBITDA Related Terms

IC Power Debt-to-EBITDA Historical Data

* Premium members only.

The historical data trend for IC Power'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.

IC Power Debt-to-EBITDA Chart

IC Power Annual Data
Trend Dec12 Dec13 Dec14 Dec15
Debt-to-EBITDA
0.00 7.70 5.75 8.08

IC Power Quarterly Data
Dec12 Dec13 Mar14 Jun14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16
Debt-to-EBITDA Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.00 10.60 7.80 8.66 6.61

ICP vs CETY, QPWR, PSPW: Debt-to-EBITDA Comparison

For the Utilities - Independent Power Producers subindustry, IC Power'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.

IC Power Debt-to-EBITDA vs Utilities - Independent Power Producers Industry

For the Utilities - Independent Power Producers industry and Utilities sector, IC Power's Debt-to-EBITDA distribution charts can be found below:

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


IC Power Debt-to-EBITDA Calculation

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

IC Power's Debt-to-EBITDA for the fiscal year 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
=(352.618 + 2212.072) / 317.254
=8.08

IC Power's annualized Debt-to-EBITDA for the quarter that ended in Sep. 2016 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(363.728 + 2950.29) / 501.596
=6.61

* 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 (Sep. 2016) EBITDA data.

Frequently Asked Questions Learn more about Debt-to-EBITDA →
What does a Debt-to-EBITDA of 6.61 mean?
IC Power (ICP) has a Debt-to-EBITDA of 6.61 as of Sep. 2016. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on IC Power.
Is IC Power's Debt-to-EBITDA too high?
IC Power's current Debt-to-EBITDA is 6.61. The Utilities - Independent Power Producers industry median Debt-to-EBITDA is 4.59. IC Power's value of 6.61 is 44% above this industry median.
How does IC Power's Debt-to-EBITDA compare to CETY and QPWR?
IC Power's Debt-to-EBITDA of 6.61 can be compared against companies in the Utilities - Independent Power Producers industry. The industry median Debt-to-EBITDA is 4.59. IC Power's value of 6.61 is 44% 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 Utilities - Independent Power Producers company?
The median Debt-to-EBITDA among Utilities - Independent Power Producers companies is 4.59, based on 339 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. IC Power's current Debt-to-EBITDA of 6.61 is 44% 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 IC Power. For the Utilities - Independent Power Producers industry, the median Debt-to-EBITDA is 4.59 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. IC Power's current Debt-to-EBITDA is 6.61. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is IC Power stock overvalued right now?
IC Power (ICP) has a current Debt-to-EBITDA of 6.61. The current Debt-to-EBITDA is 6.61 and 44% above the Utilities - Independent Power Producers industry median of 4.59. 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 IC Power (ICP), the current Debt-to-EBITDA is 6.61 as of Sep. 2016. 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.

IC Power Business Description

IC Power Pte Ltd is a holding company incorporated under the laws of Singapore in May 2015. The Company through its subsidiaries owns, develops and operates power facilities located in power generation markets in Latin America, the Caribbean and Israel, utilizing a range of fuels, including natural gas, hydroelectric, HFO, diesel and wind. The Company has installed capacity of approximately 2,642 MW. The Company operates in geographical areas including Peru; Israel; Central America including Nicaragua, Guatemala, El Salvador & Panama; and other including Bolivia, Chile, Jamaica, Colombia & Dominican Republic. The Company owns, operates and develops power plants to generate and sell electricity to distribution companies and unregulated consumers under long-term PPAs and to the spot market. The Company Peru segment includes Kallpa I, Kallpa II, Kallpa III, Kallpa IV and Las Flores turbines. The Israel segment includes OPC plant. The Central America segment includes Corinto, Tipitapa Power, Amayo I, and Amayo II in Nicaragua; Puerto Quetzal plant in Guatemala; Nejapa plant in El Salvador, and Kanan plant in Panama. The Other segment includes Zongo Valley plants including Zongo, Tiquimani, Botijlaca, Cutichucho, Santa Rosa, Sainani, Chururaqui, Harca, Cahua, & Huaji; and Miguillas Valley plants including Miguillas, Angostura, Choquetanga, Carabuco, and El Alto-Kenko all in Bolivia; Central Cardones plant in Chile; Colmito plant in Colmito; CEPP I & CEPP II in Dominican Republic; JPPC plant in Jamaica; La Hocha, Purificación, and Entrerios plants in Colombia; Pedregal in Panama. The Company offers services to governments, local distribution companies, and/or non-regulated consumers, depending upon the operating company and the particular country of operation. Its customers include Edelnor S.A.A., Luz del Sur S.A.A., Hidrandina S.A., Edecañete S.A., Electro Sur Este S.A.A., Sociedad Eléctrica del Sur Oeste, S.A., Distribuidora de Electricidad del Norte S.A., Distribuidora de Electricidad del Sur S.A., Southern Perú Copper Corporation, Empresa de Distribución Eléctrica Chiriqui, S.A., Peruvian Investment Promotion Agency, Empresa de Distribución Eléctrica Metro Oeste S.A., and others. The Company's competitors include IEC, Dorad Energy Ltd., and other IPPs. The Company's business is subject to significant and diverse government regulation.