LMPX (LMP Automotive Holdings) Debt-to-EBITDA : 3.86 (As of Sep. 2021)

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

LMPX LMP Automotive Holdings Inc LMPX
18 GF Score
Price $0.08
View Full Analysis

What is LMP Automotive Holdings Debt-to-EBITDA?

LMP Automotive Holdings LMPX 18 Debt-to-EBITDA is 3.86 as of Sep. 2021. GuruFocus rates LMPX with a GF Score™ of 18/100.

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

LMP Automotive Holdings's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2021 was $46.6 Mil. LMP Automotive Holdings's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2021 was $85.3 Mil. LMP Automotive Holdings's annualized EBITDA for the quarter that ended in Sep. 2021 was $34.1 Mil. LMP Automotive Holdings's annualized Debt-to-EBITDA for the quarter that ended in Sep. 2021 was 3.86.

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 LMP Automotive Holdings's Debt-to-EBITDA or its related term are showing as below:

LMPX's Debt-to-EBITDA is not ranked *
in the Vehicles & Parts industry.
Industry Median: 2.25
* Ranked among companies with meaningful Debt-to-EBITDA only.

LMP Automotive Holdings  (OTCPK:LMPX) 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.

LMP Automotive Holdings Debt-to-EBITDA Related Terms

LMP Automotive Holdings Debt-to-EBITDA Historical Data

* Premium members only.

The historical data trend for LMP Automotive Holdings'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.

LMP Automotive Holdings Debt-to-EBITDA Chart

LMP Automotive Holdings Annual Data
Trend Dec17 Dec18 Dec19 Dec20
Debt-to-EBITDA
-0.79 -0.51 -1.51 -0.98

LMP Automotive Holdings Quarterly Data
Dec17 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 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 -3.20 -0.38 -47.75 28.18 3.86

LMPX vs LOTZ, JZXN, KFS: Debt-to-EBITDA Comparison

For the Auto & Truck Dealerships subindustry, LMP Automotive Holdings'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.

LMP Automotive Holdings Debt-to-EBITDA vs Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, LMP Automotive Holdings's Debt-to-EBITDA distribution charts can be found below:

* The bar in red indicates where LMP Automotive Holdings's Debt-to-EBITDA falls into.


LMPX
18GF Score
LMP Automotive Holdings Inc LMPX
Debt-to-EBITDA is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

LMP Automotive Holdings Debt-to-EBITDA Calculation

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

LMP Automotive Holdings's Debt-to-EBITDA for the fiscal year that ended in Dec. 2020 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(0.905 + 2.213) / -3.176
=-0.98

LMP Automotive Holdings'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
=(46.57 + 85.29) / 34.14
=3.86

* 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. 2021) EBITDA data.

Frequently Asked Questions Learn more about Debt-to-EBITDA →
What does a Debt-to-EBITDA of 3.86 mean?
LMP Automotive Holdings (LMPX) has a Debt-to-EBITDA of 3.86 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 LMP Automotive Holdings.
Is LMP Automotive Holdings' Debt-to-EBITDA too high?
LMP Automotive Holdings' current Debt-to-EBITDA is 3.86. The Vehicles & Parts industry median Debt-to-EBITDA is 2.25. LMP Automotive Holdings' value of 3.86 is 71.6% above this industry median. Overall, LMP Automotive Holdings has a GF Score™ of 18/100, reflecting its overall financial health beyond just this single metric.
How does LMP Automotive Holdings' Debt-to-EBITDA compare to LOTZ and JZXN?
LMP Automotive Holdings' Debt-to-EBITDA of 3.86 can be compared against companies in the Vehicles & Parts industry. The industry median Debt-to-EBITDA is 2.25. LMP Automotive Holdings' value of 3.86 is 71.6% 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 Vehicles & Parts company?
The median Debt-to-EBITDA among Vehicles & Parts companies is 2.25, based on 1,096 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. LMP Automotive Holdings's current Debt-to-EBITDA of 3.86 is 71.6% 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 LMP Automotive Holdings. For the Vehicles & Parts industry, the median Debt-to-EBITDA is 2.25 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. LMP Automotive Holdings's current Debt-to-EBITDA is 3.86. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is LMP Automotive Holdings stock overvalued right now?
LMP Automotive Holdings (LMPX) has a current Debt-to-EBITDA of 3.86. The current Debt-to-EBITDA is 3.86 and 71.6% above the Vehicles & Parts industry median of 2.25. LMP Automotive Holdings' overall GF Score™ is 18/100. 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 LMP Automotive Holdings (LMPX), the current Debt-to-EBITDA is 3.86 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.

LMP Automotive Holdings Business Description

Address 500 East Broward Boulevard, Suite 1900, Fort Lauderdale, FL, USA, 33394
LMP Automotive Holdings Inc is an e-commerce and facilities-based retail platform for consumers who desire to buy, sell, rent, subscribe for or finance pre-owned and new automobiles. Its business model is described as Buy, Rent or Subscribe, Sell and Repeat. The company offer sales of pre-owned automobiles, and rentals and subscriptions for both pre-owned and new automobiles.
18GF Score

Get the complete analysis for LMPX

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

$0.08
Price