Tongaat Hulett (JSE:TON) Debt-to-EBITDA : 2.27 (As of Sep. 2021)

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JSE:TON Tongaat Hulett Ltd JSE:TON
11 GF Score
Price R4.04
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What is Tongaat Hulett Debt-to-EBITDA?

Tongaat Hulett JSE:TON 11 Debt-to-EBITDA is 2.27 as of Sep. 2021. GuruFocus rates JSE:TON with a GF Score™ of 11/100.

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

Tongaat Hulett's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2021 was R6,852 Mil. Tongaat Hulett's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2021 was R453 Mil. Tongaat Hulett's annualized EBITDA for the quarter that ended in Sep. 2021 was R3,220 Mil. Tongaat Hulett's annualized Debt-to-EBITDA for the quarter that ended in Sep. 2021 was 2.27.

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 Tongaat Hulett's Debt-to-EBITDA or its related term are showing as below:

JSE:TON's Debt-to-EBITDA is not ranked *
in the Consumer Packaged Goods industry.
Industry Median: 2.075
* Ranked among companies with meaningful Debt-to-EBITDA only.

Tongaat Hulett  (JSE:TON) 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.


Tongaat Hulett Debt-to-EBITDA Related Terms


Tongaat Hulett Debt-to-EBITDA Historical Data

* Premium members only.

The historical data trend for Tongaat Hulett'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.

Tongaat Hulett Debt-to-EBITDA Chart

Tongaat Hulett Annual Data
Trend Mar12 Mar13 Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21
Debt-to-EBITDA
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.03 -59.23 9.89 4.95 4.92

Tongaat Hulett Semi-Annual Data
Mar12 Sep12 Mar13 Sep13 Mar14 Sep14 Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21
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 7.78 3.68 3.73 -45.19 2.27

JSE:TON vs MDLZ, HSY, TR: Debt-to-EBITDA Comparison

For the Confectioners subindustry, Tongaat Hulett'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.


Tongaat Hulett Debt-to-EBITDA vs Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Tongaat Hulett's Debt-to-EBITDA distribution charts can be found below:

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


JSE:TON
11GF Score
Tongaat Hulett Ltd JSE:TON
Debt-to-EBITDA is just one metric. See GF Score™, valuation, warning signs, and more.
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Tongaat Hulett Debt-to-EBITDA Calculation

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

Tongaat Hulett's Debt-to-EBITDA for the fiscal year that ended in Mar. 2021 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(7165 + 426) / 1544
=4.92

Tongaat Hulett's annualized Debt-to-EBITDA for the quarter that ended in Sep. 2021 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(6852 + 453) / 3220
=2.27

* 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 (Sep. 2021) EBITDA data.

Frequently Asked Questions Learn more about Debt-to-EBITDA →
What does a Debt-to-EBITDA of 2.27 mean?
Tongaat Hulett (JSE:TON) has a Debt-to-EBITDA of 2.27 as of Sep. 2021. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Tongaat Hulett.
Is Tongaat Hulett's Debt-to-EBITDA too high?
Tongaat Hulett's current Debt-to-EBITDA is 2.27. The Consumer Packaged Goods industry median Debt-to-EBITDA is 2.08. Tongaat Hulett's value of 2.27 is 9.4% above this industry median. Overall, Tongaat Hulett has a GF Score™ of 11/100, reflecting its overall financial health beyond just this single metric.
How does Tongaat Hulett's Debt-to-EBITDA compare to MDLZ and HSY?
Tongaat Hulett's Debt-to-EBITDA of 2.27 can be compared against companies in the Consumer Packaged Goods industry. The industry median Debt-to-EBITDA is 2.08. Tongaat Hulett's value of 2.27 is 9.4% 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 a Consumer Packaged Goods company?
The median Debt-to-EBITDA among Consumer Packaged Goods companies is 2.08, based on 1,554 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. Tongaat Hulett's current Debt-to-EBITDA of 2.27 is 9.4% 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 Tongaat Hulett. For the Consumer Packaged Goods industry, the median Debt-to-EBITDA is 2.08 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tongaat Hulett's current Debt-to-EBITDA is 2.27. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tongaat Hulett stock overvalued right now?
Tongaat Hulett (JSE:TON) has a current Debt-to-EBITDA of 2.27. The current Debt-to-EBITDA is 2.27 and 9.4% above the Consumer Packaged Goods industry median of 2.08. Tongaat Hulett's overall GF Score™ is 11/100. 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 Tongaat Hulett (JSE:TON), the current Debt-to-EBITDA is 2.27 as of Sep. 2021. 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.

Tongaat Hulett Business Description

Address Amanzimnyama Hill Road, P O Box 3, Tongaat, NL, ZAF, 4400
Tongaat Hulett Ltd produces sugar and glucose in Africa. It procures its raw materials both from land it owns and from private farmers. Tongaat sells its products to customers in the foodservice industry and to consumers as branded products. Raw sugar sales make up most of the company's revenue. Its biggest markets are South Africa, Zimbabwe, and Mozambique. The company also earns revenue by converting and developing land that it owns and has used for agricultural purposes. Additionally, the by-products from its manufacturing processes create renewable energy, which the company uses to supply electricity to the grid in some instances.
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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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