EZZ Steel CoE (LSE:67NW) Debt-to-EBITDA : 3.10 (As of Jun. 2024) — 48% Below Median

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.

What is EZZ Steel CoE Debt-to-EBITDA?

EZZ Steel CoE LSE:67NW 4 Debt-to-EBITDA is 3.10 as of Jun. 2024, which is 48% below its 10-year median of 5.92. GuruFocus rates LSE:67NW with a GF Score™ of 4/100. The stock has 7 warning signs investors should review.

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

EZZ Steel CoE's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2024 was £690.26 Mil. EZZ Steel CoE's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2024 was £455.76 Mil. EZZ Steel CoE's annualized EBITDA for the quarter that ended in Jun. 2024 was £369.97 Mil. EZZ Steel CoE's annualized Debt-to-EBITDA for the quarter that ended in Jun. 2024 was 3.10.

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 EZZ Steel CoE's Debt-to-EBITDA or its related term are showing as below:

LSE:67NW' s Debt-to-EBITDA Range Over the Past 10 Years
Min: -19.69   Med: 5.92   Max: 103.49
Current: 4.57

During the past 13 years, the highest Debt-to-EBITDA Ratio of EZZ Steel CoE was 103.49. The lowest was -19.69. And the median was 5.92.

LSE:67NW's Debt-to-EBITDA is not ranked
in the Steel industry.
Industry Median: 2.81 vs LSE:67NW: 4.57

EZZ Steel CoE  (LSE:67NW) 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.


EZZ Steel CoE Debt-to-EBITDA Related Terms


EZZ Steel CoE Debt-to-EBITDA Historical Data

* Premium members only.

The historical data trend for EZZ Steel CoE'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.

EZZ Steel CoE Debt-to-EBITDA Chart

EZZ Steel CoE Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Debt-to-EBITDA
Get a 7-Day Free Trial Premium Member Only Premium Member Only -19.69 103.49 3.13 2.54 10.50

EZZ Steel CoE Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
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 3.20 65.22 4.92 2.89 3.10

LSE:67NW vs NUE, STLD, RS: Debt-to-EBITDA Comparison

For the Steel subindustry, EZZ Steel CoE'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.


EZZ Steel CoE Debt-to-EBITDA vs Steel Industry

For the Steel industry and Basic Materials sector, EZZ Steel CoE's Debt-to-EBITDA distribution charts can be found below:

* The bar in red indicates where EZZ Steel CoE's Debt-to-EBITDA falls into.



EZZ Steel CoE Debt-to-EBITDA Calculation

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

EZZ Steel CoE's Debt-to-EBITDA for the fiscal year that ended in Dec. 2023 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(1149.241 + 679.502) / 174.132
=10.50

EZZ Steel CoE's annualized Debt-to-EBITDA for the quarter that ended in Jun. 2024 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(690.263 + 455.756) / 369.972
=3.10

* 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. 2024) EBITDA data.

Frequently Asked Questions Learn more about Debt-to-EBITDA →
What does a Debt-to-EBITDA of 3.10 mean?
EZZ Steel CoE (LSE:67NW) has a Debt-to-EBITDA of 3.10 as of Jun. 2024. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on EZZ Steel CoE. This is 48% below median its historical median of 5.92.
Is EZZ Steel CoE's Debt-to-EBITDA too high?
EZZ Steel CoE's current Debt-to-EBITDA of 3.10 is 48% below median its 10-year median of 5.92. The Steel industry median Debt-to-EBITDA is 2.81. EZZ Steel CoE's value of 3.10 is 10.3% above this industry median. Overall, EZZ Steel CoE has a GF Score™ of 4/100, reflecting its overall financial health beyond just this single metric.
How does EZZ Steel CoE's Debt-to-EBITDA compare to NUE and STLD?
EZZ Steel CoE's Debt-to-EBITDA of 3.10 can be compared against companies in the Steel industry. The industry median Debt-to-EBITDA is 2.81. EZZ Steel CoE's value of 3.10 is 10.3% above this benchmark. While the company's 10-year median is 5.92 vs. the industry median of 2.81, EZZ Steel CoE has consistently been above 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 Steel company?
The median Debt-to-EBITDA among Steel companies is 2.81, based on 499 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. EZZ Steel CoE's current Debt-to-EBITDA of 3.10 is 10.3% 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 EZZ Steel CoE. For the Steel industry, the median Debt-to-EBITDA is 2.81 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. EZZ Steel CoE's current Debt-to-EBITDA is 3.10, which is 48% below median its own 10-year median of 5.92. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is EZZ Steel CoE stock overvalued right now?
EZZ Steel CoE (LSE:67NW) has a current Debt-to-EBITDA of 3.10. The current Debt-to-EBITDA is 3.10, which is 48% below median its 10-year median of 5.92 and 10.3% above the Steel industry median of 2.81. EZZ Steel CoE's overall GF Score™ is 4/100 with 7 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 EZZ Steel CoE (LSE:67NW), the current Debt-to-EBITDA is 3.10 as of Jun. 2024. 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.

EZZ Steel CoE Business Description

Address Cornich El-Nil, Four Seasons Nile Plaza, The Corporate Building, Garden City, Cairo, EGY, 1089
EZZ Steel Co SAE is an Egypt-based company that manufactures and distributes long and flat steel products. The company's long products, including rebar and wire rod, are employed in applications including concrete reinforcement bars, nails, bolts, tacks, welding tools, electrical components, wire mesh, and others. The company's flat products are applied in automotive components, suspension parts, wheels, containers, gas cylinders, and others.