Hercules (LSE:HERC) Debt-to-EBITDA : 6.81 (As of Mar. 2026) — 54% Above Median

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LSE:HERC Hercules PLC LSE:HERC
52 GF Score
Price £0.38
GF Value £0.44
Valuation Modestly Undervalued
! 8 Warning Signs
View Full Analysis

What is Hercules Debt-to-EBITDA?

Hercules LSE:HERC +4.11% 52 Debt-to-EBITDA is 6.81 as of Mar. 2026, which is 54% above its 10-year median of 4.41. GuruFocus rates LSE:HERC with a GF Score™ of 52/100 and a GF Value™ of £0.44 (Modestly Undervalued). The stock has 8 warning signs investors should review. Among 833 Business Services companies, Hercules ranks worse than 88.36% on this metric.

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

Hercules's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2026 was £8.0 Mil. Hercules's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2026 was £9.7 Mil. Hercules's annualized EBITDA for the quarter that ended in Mar. 2026 was £2.6 Mil. Hercules's annualized Debt-to-EBITDA for the quarter that ended in Mar. 2026 was 6.81.

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

LSE:HERC' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.9   Med: 4.41   Max: 11.15
Current: 6.49

During the past 9 years, the highest Debt-to-EBITDA Ratio of Hercules was 11.15. The lowest was 0.90. And the median was 4.41.

LSE:HERC's Debt-to-EBITDA is ranked worse than
88.36% of 833 companies
in the Business Services industry
Industry Median: 1.67 vs LSE:HERC: 6.49

Hercules  (LSE:HERC) 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.


Hercules Debt-to-EBITDA Related Terms


Hercules Debt-to-EBITDA Historical Data

* Premium members only.

The historical data trend for Hercules'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.

Hercules Debt-to-EBITDA Chart

Hercules Annual Data
Trend Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23 Sep24 Sep25
Debt-to-EBITDA
Get a 7-Day Free Trial Premium Member Only 7.25 11.15 8.23 2.88 4.72

Hercules Semi-Annual Data
Sep17 Sep18 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24 Sep24 Mar25 Sep25 Mar26
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 5.02 2.75 3.11 6.00 6.81

LSE:HERC vs KFY, RHI, TNET: Debt-to-EBITDA Comparison

For the Staffing & Employment Services subindustry, Hercules'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.


Hercules Debt-to-EBITDA vs Business Services Industry

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

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


LSE:HERC
52GF Score
Hercules PLC LSE:HERC
Debt-to-EBITDA is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Hercules Debt-to-EBITDA Calculation

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

Hercules's Debt-to-EBITDA for the fiscal year that ended in Sep. 2025 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(7.144 + 9.985) / 3.627
=4.72

Hercules's annualized Debt-to-EBITDA for the quarter that ended in Mar. 2026 is calculated as

* 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 (Mar. 2026) EBITDA data.

Frequently Asked Questions Learn more about Debt-to-EBITDA →
What does a Debt-to-EBITDA of 6.81 mean?
Hercules (LSE:HERC) has a Debt-to-EBITDA of 6.81 as of Mar. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Hercules. This is 54% above median its historical median of 4.41. Over the past decade, Hercules' Debt-to-EBITDA has ranged from 0.90 to 11.15. According to the industry distribution chart, Hercules ranks #736 out of 833 companies in the Business Services industry, placing it in the top 88.4%.
Is Hercules' Debt-to-EBITDA too high?
Hercules' current Debt-to-EBITDA of 6.81 is 54% above median its 10-year median of 4.41. Over the past 10 years, this metric has ranged from a low of 0.90 to a high of 11.15. The Business Services industry median Debt-to-EBITDA is 1.67. Hercules' value of 6.81 is 307.8% above this industry median. Based on the distribution chart, Hercules ranks #736 out of 833 companies in the Business Services industry, which is in the bottom quartile relative to peers. Overall, Hercules has a GF Score™ of 52/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Hercules' Debt-to-EBITDA compare to KFY and RHI?
According to the Business Services industry distribution chart, Hercules ranks #736 out of 833 companies for Debt-to-EBITDA. This places Hercules in the lower half of its industry. The industry median Debt-to-EBITDA is 1.67. Hercules' value of 6.81 is 307.8% above this benchmark. Historically, Hercules' own Debt-to-EBITDA has ranged from 0.90 to 11.15 over the past decade. While the company's 10-year median is 4.41 vs. the industry median of 1.67, Hercules 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 Business Services company?
The median Debt-to-EBITDA among Business Services companies is 1.67, based on 833 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. Hercules's current Debt-to-EBITDA of 6.81 is 307.8% 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 Hercules. For the Business Services industry, the median Debt-to-EBITDA is 1.67 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hercules's current Debt-to-EBITDA is 6.81, which is 54% above median its own 10-year median of 4.41. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hercules stock overvalued right now?
Based on GuruFocus' analysis, Hercules (LSE:HERC) is currently considered Modestly Undervalued. The stock's GF Value™ is £0.44, compared to a current price of £0.38 — trading 13.6% below its estimated fair value. The current Debt-to-EBITDA is 6.81, which is 54% above median its 10-year median of 4.41 and 307.8% above the Business Services industry median of 1.67. Hercules' overall GF Score™ is 52/100 with 8 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 Hercules (LSE:HERC), the current Debt-to-EBITDA is 6.81 as of Mar. 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 Hercules (LSE:HERC) Overvalued in 2026?

Based on GuruFocus' analysis, Hercules stock appears to be undervalued. The current stock price of £0.38 is trading 13.6% below its estimated GF Value™ of £0.44. GuruFocus considers Hercules to be Modestly Undervalued.

Key valuation signals for LSE:HERC:

  • Debt-to-EBITDA: 6.81 (54% above median its 10-year median of 4.41)
  • GF Value™: £0.44 vs. price of £0.38 (13.6% below fair value)
  • GF Score™: 52/100 with 8 warning signs
  • Industry Position: 307.8% above the Business Services median (#736 of 833)

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


Hercules Business Description

Address Broadway Lane, South Cerney, Lakeside Business Park, Hercules Court, Cirencester, GBR, GL7 5XZ
Hercules PLC is a technology-enabled labour supply company for the UK infrastructure and construction sectors. The company provides general labour for highway projects, specialised operators for the water sector, and health and well-being support. The segments of the company are Labour supply engaged in the provision of labour to customers Civil projects represents work performed under contracts with customers to undertake construction and/or civil engineering work, and Other activities. The company derives maximum revenue from Labour supply segment. Labour supply is engaged in providing flexible and reliable workforce solutions tailored to meet the demands of each project.
52GF Score

Get the complete analysis for LSE:HERC

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

£0.38
Price
£0.44
GF Value