Billing Services Group (LSE:BILL) Debt-to-EBITDA : 0.58 (As of Jun. 2019) — 65% Below Median

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What is Billing Services Group Debt-to-EBITDA?

Billing Services Group LSE:BILL Debt-to-EBITDA is 0.58 as of Jun. 2019, which is 65% below its 10-year median of 1.68. The stock has 5 warning signs investors should review.

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

Billing Services Group's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2019 was £0.39 Mil. Billing Services Group's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2019 was £0.11 Mil. Billing Services Group's annualized EBITDA for the quarter that ended in Jun. 2019 was £0.86 Mil. Billing Services Group's annualized Debt-to-EBITDA for the quarter that ended in Jun. 2019 was 0.58.

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 Billing Services Group's Debt-to-EBITDA or its related term are showing as below:

LSE:BILL' s Debt-to-EBITDA Range Over the Past 10 Years
Min: -0.04   Med: 1.68   Max: 52.1
Current: -0.09

During the past 13 years, the highest Debt-to-EBITDA Ratio of Billing Services Group was 52.10. The lowest was -0.04. And the median was 1.68.

LSE:BILL's Debt-to-EBITDA is not ranked
in the Business Services industry.
Industry Median: 1.65 vs LSE:BILL: -0.09

Billing Services Group  (LSE:BILL) 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.


Billing Services Group Debt-to-EBITDA Related Terms


Billing Services Group Debt-to-EBITDA Historical Data

* Premium members only.

The historical data trend for Billing Services Group'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.

Billing Services Group Debt-to-EBITDA Chart

Billing Services Group Annual Data
Trend Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18
Debt-to-EBITDA
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.97 0.00 0.01 -0.04 -0.02

Billing Services Group Semi-Annual Data
Dec09 Jun10 Dec10 Jun11 Dec11 Jun12 Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19
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 0.09 -0.02 0.37 -0.01 0.58

LSE:BILL vs GPN, CTAS, CPRT: Debt-to-EBITDA Comparison

For the Specialty Business Services subindustry, Billing Services Group'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.


Billing Services Group Debt-to-EBITDA vs Business Services Industry

For the Business Services industry and Industrials sector, Billing Services Group's Debt-to-EBITDA distribution charts can be found below:

* The bar in red indicates where Billing Services Group's Debt-to-EBITDA falls into.



Billing Services Group Debt-to-EBITDA Calculation

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

Billing Services Group's Debt-to-EBITDA for the fiscal year that ended in Dec. 2018 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(0.096 + 0.044) / -5.984
=-0.02

Billing Services Group's annualized Debt-to-EBITDA for the quarter that ended in Jun. 2019 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(0.393 + 0.105) / 0.864
=0.58

* 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 (Jun. 2019) EBITDA data.

Frequently Asked Questions Learn more about Debt-to-EBITDA →
What does a Debt-to-EBITDA of 0.58 mean?
Billing Services Group (LSE:BILL) has a Debt-to-EBITDA of 0.58 as of Jun. 2019. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Billing Services Group. This is 65% below median its historical median of 1.68.
Is Billing Services Group's Debt-to-EBITDA too high?
Billing Services Group's current Debt-to-EBITDA of 0.58 is 65% below median its 10-year median of 1.68. The Business Services industry median Debt-to-EBITDA is 1.65. Billing Services Group's value of 0.58 is 64.8% below this industry median.
How does Billing Services Group's Debt-to-EBITDA compare to GPN and CTAS?
Billing Services Group's Debt-to-EBITDA of 0.58 can be compared against companies in the Business Services industry. The industry median Debt-to-EBITDA is 1.65. Billing Services Group's value of 0.58 is 64.8% below this benchmark. While the company's 10-year median is 1.68 vs. the industry median of 1.65, Billing Services Group 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 Business Services company?
The median Debt-to-EBITDA among Business Services companies is 1.65, based on 835 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. Billing Services Group's current Debt-to-EBITDA of 0.58 is 64.8% 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 Billing Services Group. For the Business Services industry, the median Debt-to-EBITDA is 1.65 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Billing Services Group's current Debt-to-EBITDA is 0.58, which is 65% below median its own 10-year median of 1.68. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Billing Services Group stock overvalued right now?
Based on GuruFocus' analysis, Billing Services Group (LSE:BILL) is currently considered Possible Value Trap. The current Debt-to-EBITDA is 0.58, which is 65% below median its 10-year median of 1.68 and 64.8% below the Business Services industry median of 1.65. 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 Billing Services Group (LSE:BILL), the current Debt-to-EBITDA is 0.58 as of Jun. 2019. 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.

Billing Services Group Business Description

Address 22 Victoria Street, Canon’s Court, Hamilton, BMU, HM 12
Billing Services Group Ltd is focused on payment solutions. The company offers a powerful suite of financial clearinghouse services for merchants, online stores, and telecommunications companies. Its services include local exchange carrier (LEC) phone clearing, billing and settlement solutions, toll clearing services, a Wi-Fi wholesale settlement solution, and VoiceLog Third Party Verification. The company generates a majority of revenue from LEC billing. Its geographical segment includes North America and Europe, the Middle East and Africa. The company derives the maximum revenue from North America.