Cerved Group SpA (MEX:CERVN) Debt-to-EBITDA : 7.30 (As of Sep. 2021) — 117% Above Median

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What is Cerved Group SpA Debt-to-EBITDA?

Cerved Group SpA MEX:CERVN 8 Debt-to-EBITDA is 7.30 as of Sep. 2021, which is 117% above its 10-year median of 3.37. GuruFocus rates MEX:CERVN with a GF Score™ of 8/100. The stock has 8 warning signs investors should review.

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

Cerved Group SpA's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2021 was MXN1,105.85 Mil. Cerved Group SpA's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2021 was MXN13,836.87 Mil. Cerved Group SpA's annualized EBITDA for the quarter that ended in Sep. 2021 was MXN2,047.68 Mil. Cerved Group SpA's annualized Debt-to-EBITDA for the quarter that ended in Sep. 2021 was 7.30.

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

MEX:CERVN' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 2.54   Med: 3.37   Max: 5.33
Current: 4.42

During the past 11 years, the highest Debt-to-EBITDA Ratio of Cerved Group SpA was 5.33. The lowest was 2.54. And the median was 3.37.

MEX:CERVN's Debt-to-EBITDA is not ranked
in the Capital Markets industry.
Industry Median: 1.73 vs MEX:CERVN: 4.42

Cerved Group SpA  (MEX:CERVN) 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.


Cerved Group SpA Debt-to-EBITDA Related Terms


Cerved Group SpA Debt-to-EBITDA Historical Data

* Premium members only.

The historical data trend for Cerved Group SpA'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.

Cerved Group SpA Debt-to-EBITDA Chart

Cerved Group SpA Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
Debt-to-EBITDA
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.41 3.37 2.94 2.54 3.59

Cerved Group SpA Quarterly Data
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.06 7.82 3.09 3.24 7.30

MEX:CERVN vs VALU: Debt-to-EBITDA Comparison

For the Financial Data & Stock Exchanges subindustry, Cerved Group SpA'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.


Cerved Group SpA Debt-to-EBITDA vs Capital Markets Industry

For the Capital Markets industry and Financial Services sector, Cerved Group SpA's Debt-to-EBITDA distribution charts can be found below:

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



Cerved Group SpA Debt-to-EBITDA Calculation

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

Cerved Group SpA'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
=(782.999 + 14603.487) / 4283.895
=3.59

Cerved Group SpA'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
=(1105.849 + 13836.871) / 2047.684
=7.30

* 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 7.30 mean?
Cerved Group SpA (MEX:CERVN) has a Debt-to-EBITDA of 7.30 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 Cerved Group SpA. This is 117% above median its historical median of 3.37. Over the past decade, Cerved Group SpA's Debt-to-EBITDA has ranged from 2.54 to 5.33.
Is Cerved Group SpA's Debt-to-EBITDA too high?
Cerved Group SpA's current Debt-to-EBITDA of 7.30 is 117% above median its 10-year median of 3.37. Over the past 10 years, this metric has ranged from a low of 2.54 to a high of 5.33. The Capital Markets industry median Debt-to-EBITDA is 1.73. Cerved Group SpA's value of 7.30 is 322% above this industry median. Overall, Cerved Group SpA has a GF Score™ of 8/100, reflecting its overall financial health beyond just this single metric.
How does Cerved Group SpA's Debt-to-EBITDA compare to VALU?
Cerved Group SpA's Debt-to-EBITDA of 7.30 can be compared against companies in the Capital Markets industry. The industry median Debt-to-EBITDA is 1.73. Cerved Group SpA's value of 7.30 is 322% above this benchmark. Historically, Cerved Group SpA's own Debt-to-EBITDA has ranged from 2.54 to 5.33 over the past decade. While the company's 10-year median is 3.37 vs. the industry median of 1.73, Cerved Group SpA 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 Capital Markets company?
The median Debt-to-EBITDA among Capital Markets companies is 1.73, based on 419 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. Cerved Group SpA's current Debt-to-EBITDA of 7.30 is 322% 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 Cerved Group SpA. For the Capital Markets industry, the median Debt-to-EBITDA is 1.73 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cerved Group SpA's current Debt-to-EBITDA is 7.30, which is 117% above median its own 10-year median of 3.37. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cerved Group SpA stock overvalued right now?
Cerved Group SpA (MEX:CERVN) has a current Debt-to-EBITDA of 7.30. The current Debt-to-EBITDA is 7.30, which is 117% above median its 10-year median of 3.37 and 322% above the Capital Markets industry median of 1.73. Cerved Group SpA's overall GF Score™ is 8/100 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 Cerved Group SpA (MEX:CERVN), the current Debt-to-EBITDA is 7.30 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.

Cerved Group SpA Business Description

Address Via Dell’Unione Europea, 6A, 6B, San Donato Milanese, Milan, ITA, 20097
Cerved Group SpA is a holding company that owns the Cerved Group, an Italian credit information service provider. It operates through three segments. The Risk Management segment, which accounts for the majority of the Cerved Group's revenue, offers products and services that help businesses and financial institutions to assess the credit status of their customers, business counterparties, and potential customers. The Growth Services segment offers information and analyses that help customers to understand the target market and regions, develop businesses, and improve customer satisfaction. The credit management segment assesses and manages troubled receivables and assets. It generates the majority of its revenue from the Italian domestic market.