Labat AfricaJSE:LAB Debt-to-EBITDA is 0.10 as of Nov. 2025, which is 150% above its 10-year median of 0.04. The stock has 5 warning signs investors should review. Among 687 Drug Manufacturers companies, Labat Africa ranks better than 87.19% 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 Labat Africa's Debt-to-EBITDA or its related term are showing as below:
JSE:LAB'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: -2.16 Med: 0.04 Max: 6.18
Current: 0.09
During the past 13 years, the highest Debt-to-EBITDA Ratio of Labat Africa was 6.18. The lowest was -2.16. And the median was 0.04.
JSE:LAB's Debt-to-EBITDA is ranked better than 87.19% of 687
companies
in the Drug Manufacturers industry
Industry Median: 1.68
vs JSE:LAB: 0.09
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.
Labat Africa Debt-to-EBITDA Related Terms
Labat Africa Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for Labat Africa'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.
JSE:LAB vs ZTS, UTHR, VTRS: Debt-to-EBITDA Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Labat Africa'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.
Labat Africa Debt-to-EBITDA vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Labat Africa's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Labat Africa'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 (Nov. 2025) EBITDA data.
Labat Africa (JSE:LAB) has a Debt-to-EBITDA of 0.10 as of Nov. 2025. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Labat Africa. This is 150% above median its historical median of 0.04. According to the industry distribution chart, Labat Africa ranks #88 out of 687 companies in the Drug Manufacturers industry, placing it in the top 12.8%.
Is Labat Africa's Debt-to-EBITDA too high?
Labat Africa's current Debt-to-EBITDA of 0.10 is 150% above median its 10-year median of 0.04. The Drug Manufacturers industry median Debt-to-EBITDA is 1.68. Labat Africa's value of 0.10 is 94% below this industry median. Based on the distribution chart, Labat Africa ranks #88 out of 687 companies in the Drug Manufacturers industry, which is in the top quartile — a strong position relative to peers.
How does Labat Africa's Debt-to-EBITDA compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Labat Africa ranks #88 out of 687 companies for Debt-to-EBITDA. This places Labat Africa in the top 13% of its industry — outperforming the majority of peers. The industry median Debt-to-EBITDA is 1.68. Labat Africa's value of 0.10 is 94% below this benchmark. While the company's 10-year median is 0.04 vs. the industry median of 1.68, Labat Africa 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 Drug Manufacturers company?
The median Debt-to-EBITDA among Drug Manufacturers companies is 1.68, based on 687 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. Labat Africa's current Debt-to-EBITDA of 0.10 is 94% 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 Labat Africa. For the Drug Manufacturers industry, the median Debt-to-EBITDA is 1.68 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Labat Africa's current Debt-to-EBITDA is 0.10, which is 150% above median its own 10-year median of 0.04. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Labat Africa stock overvalued right now?
Based on GuruFocus' analysis, Labat Africa (JSE:LAB) is currently considered Possible Value Trap. The stock's GF Value™ is R0.18, compared to a current price of R0.04 — trading 77.8% below its estimated fair value. The current Debt-to-EBITDA is 0.10, which is 150% above median its 10-year median of 0.04 and 94% below the Drug Manufacturers industry median of 1.68. 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 Labat Africa (JSE:LAB), the current Debt-to-EBITDA is 0.10 as of Nov. 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.
Labat Africa Ltd is an investment holding company. Through its subsidiaries, the company operates in the following segments; Technology, Head office, and Healthcare. The Technology segment manufactures and distributes integrated circuits South African Micro - Electronic Systems. Head office operations provide management services, logistics and seeks further investment opportunities for the Group. The Healthcare segment generates maximum revenue for the company and focusses on medical cannabis industry in South Africa. Geographically, the company carries out its business operations in South Africa.
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