Ali Alghanim Sons Automotive Co KSC (KUW:ALG) Debt-to-EBITDA : 1.57 (As of Jun. 2026) — 50% Above Median

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KUW:ALG Ali Alghanim Sons Automotive Co KSC KUW:ALG
22 GF Score
Price KWD0.93
GF Value KWD0.89
Valuation Fairly Valued
! 6 Warning Signs
View Full Analysis

What is Ali Alghanim Sons Automotive Co KSC Debt-to-EBITDA?

Ali Alghanim Sons Automotive Co KSC KUW:ALG -0.53% 22 Debt-to-EBITDA is 1.57 as of Jun. 2026, which is 50% above its 10-year median of 1.05. GuruFocus rates KUW:ALG with a GF Score™ of 22/100 and a GF Value™ of KWD0.89 (Fairly Valued). The stock has 6 warning signs investors should review. Among 1,112 Vehicles & Parts companies, Ali Alghanim Sons Automotive Co KSC ranks better than 65.83% on this metric.

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

Ali Alghanim Sons Automotive Co KSC's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2026 was KWD15.2 Mil. Ali Alghanim Sons Automotive Co KSC's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2026 was KWD45.3 Mil. Ali Alghanim Sons Automotive Co KSC's annualized EBITDA for the quarter that ended in Jun. 2026 was KWD38.6 Mil. Ali Alghanim Sons Automotive Co KSC's annualized Debt-to-EBITDA for the quarter that ended in Jun. 2026 was 1.56.

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 Ali Alghanim Sons Automotive Co KSC's Debt-to-EBITDA or its related term are showing as below:

KUW:ALG' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.74   Med: 1.05   Max: 1.4
Current: 1.4

During the past 5 years, the highest Debt-to-EBITDA Ratio of Ali Alghanim Sons Automotive Co KSC was 1.40. The lowest was 0.74. And the median was 1.05.

KUW:ALG's Debt-to-EBITDA is ranked better than
65.83% of 1112 companies
in the Vehicles & Parts industry
Industry Median: 2.295 vs KUW:ALG: 1.40

Ali Alghanim Sons Automotive Co KSC  (KUW:ALG) 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.


Ali Alghanim Sons Automotive Co KSC Debt-to-EBITDA Related Terms


Ali Alghanim Sons Automotive Co KSC Debt-to-EBITDA Historical Data

* Premium members only.

The historical data trend for Ali Alghanim Sons Automotive Co KSC'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.

Ali Alghanim Sons Automotive Co KSC Debt-to-EBITDA Chart

Ali Alghanim Sons Automotive Co KSC Annual Data
Trend Dec21 Dec22 Dec23 Dec24 Dec25
Debt-to-EBITDA
1.05 0.74 0.90 1.06 1.15

Ali Alghanim Sons Automotive Co KSC Quarterly Data
Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26 Jun26
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 1.45 1.53 1.14 1.71 1.57

KUW:ALG vs CVNA, PAG, KMX: Debt-to-EBITDA Comparison

For the Auto & Truck Dealerships subindustry, Ali Alghanim Sons Automotive Co KSC'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.


Ali Alghanim Sons Automotive Co KSC Debt-to-EBITDA vs Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Ali Alghanim Sons Automotive Co KSC's Debt-to-EBITDA distribution charts can be found below:

* The bar in red indicates where Ali Alghanim Sons Automotive Co KSC's Debt-to-EBITDA falls into.


KUW:ALG
22GF Score
Ali Alghanim Sons Automotive Co KSC KUW:ALG
Debt-to-EBITDA is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Ali Alghanim Sons Automotive Co KSC Debt-to-EBITDA Calculation

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

Ali Alghanim Sons Automotive Co KSC's Debt-to-EBITDA for the fiscal year that ended in Dec. 2025 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(23.174 + 34.867) / 50.359
=1.15

Ali Alghanim Sons Automotive Co KSC's annualized Debt-to-EBITDA for the quarter that ended in Jun. 2026 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(15.182 + 45.295) / 38.648
=1.56

* 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 (Jun. 2026) EBITDA data.

Frequently Asked Questions Learn more about Debt-to-EBITDA →
What does a Debt-to-EBITDA of 1.57 mean?
Ali Alghanim Sons Automotive Co KSC (KUW:ALG) has a Debt-to-EBITDA of 1.57 as of Jun. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Ali Alghanim Sons Automotive Co KSC. This is 50% above median its historical median of 1.05. Over the past decade, Ali Alghanim Sons Automotive Co KSC's Debt-to-EBITDA has ranged from 0.74 to 1.40. According to the industry distribution chart, Ali Alghanim Sons Automotive Co KSC ranks #380 out of 1112 companies in the Vehicles & Parts industry, placing it in the top 34.2%.
Is Ali Alghanim Sons Automotive Co KSC's Debt-to-EBITDA too high?
Ali Alghanim Sons Automotive Co KSC's current Debt-to-EBITDA of 1.57 is 50% above median its 10-year median of 1.05. Over the past 10 years, this metric has ranged from a low of 0.74 to a high of 1.40. The Vehicles & Parts industry median Debt-to-EBITDA is 2.30. Ali Alghanim Sons Automotive Co KSC's value of 1.57 is 31.6% below this industry median. Based on the distribution chart, Ali Alghanim Sons Automotive Co KSC ranks #380 out of 1112 companies in the Vehicles & Parts industry, which is above the industry midpoint. Overall, Ali Alghanim Sons Automotive Co KSC has a GF Score™ of 22/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Ali Alghanim Sons Automotive Co KSC's Debt-to-EBITDA compare to CVNA and PAG?
According to the Vehicles & Parts industry distribution chart, Ali Alghanim Sons Automotive Co KSC ranks #380 out of 1112 companies for Debt-to-EBITDA. This puts Ali Alghanim Sons Automotive Co KSC in the upper half of its industry. The industry median Debt-to-EBITDA is 2.30. Ali Alghanim Sons Automotive Co KSC's value of 1.57 is 31.6% below this benchmark. Historically, Ali Alghanim Sons Automotive Co KSC's own Debt-to-EBITDA has ranged from 0.74 to 1.40 over the past decade. While the company's 10-year median is 1.05 vs. the industry median of 2.30, Ali Alghanim Sons Automotive Co KSC 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 Vehicles & Parts company?
The median Debt-to-EBITDA among Vehicles & Parts companies is 2.30, based on 1,112 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. Ali Alghanim Sons Automotive Co KSC's current Debt-to-EBITDA of 1.57 is 31.6% 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 Ali Alghanim Sons Automotive Co KSC. For the Vehicles & Parts industry, the median Debt-to-EBITDA is 2.30 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ali Alghanim Sons Automotive Co KSC's current Debt-to-EBITDA is 1.57, which is 50% above median its own 10-year median of 1.05. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ali Alghanim Sons Automotive Co KSC stock overvalued right now?
Based on GuruFocus' analysis, Ali Alghanim Sons Automotive Co KSC (KUW:ALG) is currently considered Fairly Valued. The stock's GF Value™ is KWD0.89, compared to a current price of KWD0.93 — trading 4.9% above its estimated fair value. The current Debt-to-EBITDA is 1.57, which is 50% above median its 10-year median of 1.05 and 31.6% below the Vehicles & Parts industry median of 2.30. Ali Alghanim Sons Automotive Co KSC's overall GF Score™ is 22/100 with 6 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 Ali Alghanim Sons Automotive Co KSC (KUW:ALG), the current Debt-to-EBITDA is 1.57 as of Jun. 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 Ali Alghanim Sons Automotive Co KSC (KUW:ALG) Overvalued in 2026?

Based on GuruFocus' analysis, Ali Alghanim Sons Automotive Co KSC stock appears to be overvalued. The current stock price of KWD0.93 is trading 4.9% above its estimated GF Value™ of KWD0.89. GuruFocus considers Ali Alghanim Sons Automotive Co KSC to be Fairly Valued.

Key valuation signals for KUW:ALG:

  • Debt-to-EBITDA: 1.57 (50% above median its 10-year median of 1.05)
  • GF Value™: KWD0.89 vs. price of KWD0.93 (4.9% above fair value)
  • GF Score™: 22/100 with 6 warning signs
  • Industry Position: 31.6% below the Vehicles & Parts median (#380 of 1112)

No single metric tells the full story. See the KUW:ALG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Ali Alghanim Sons Automotive Co KSC Business Description

Address Airport Road 55, P.O. Box 21540, Safat, Opposite Kaifan Telecommunication, Shuwaikh, KWT, 13076
Ali Alghanim Sons Automotive Co KSC is engaged in the automotive business, with activities including the sale and purchase of cars and spare parts, import and export of light and heavy vehicles, car rental services, maintenance of vehicles, trading of auto spare parts, and equipment rental and maintenance. The Group operates across three geographical segments, namely the State of Kuwait, Iraq, and the United Arab Emirates, with the State of Kuwait contributing the majority of its revenue.
22GF Score

Get the complete analysis for KUW:ALG

Debt-to-EBITDA is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

KWD0.93
Price
KWD0.89
GF Value