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Royale EnergyROYL +9.73% Debt-to-EBITDA is 1.87 as of Dec. 2025. The stock has 3 warning signs investors should review. Among 704 Oil & Gas companies, Royale Energy ranks worse than 142045.31% on this metric.
Debt-to-EBITDA measures a company's ability to pay off its debt.
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 Royale Energy's Debt-to-EBITDA or its related term are showing as below:
ROYL'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: -7.43 Med: -0.11 Max: 3.21
Current: -7.43
During the past 13 years, the highest Debt-to-EBITDA Ratio of Royale Energy was 3.21. The lowest was -7.43. And the median was -0.11.
ROYL's Debt-to-EBITDA is ranked worse than 100% of 704
companies
in the Oil & Gas industry
Industry Median: 2.015
vs ROYL: -7.43
Royale Energy (OTCPK:ROYL) Debt-to-EBITDA Explanation
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.
Royale Energy Debt-to-EBITDA Related Terms
Royale Energy Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for Royale Energy'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.
ROYL vs PGNYF, GULTU, HGTXU: Debt-to-EBITDA Comparison
For the Oil & Gas E&P subindustry, Royale Energy'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.
Royale Energy Debt-to-EBITDA vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Royale Energy's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Royale Energy's Debt-to-EBITDA falls into.
* 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 (Dec. 2025) EBITDA data.
Royale Energy (ROYL) has a Debt-to-EBITDA of 1.87 as of Dec. 2025. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Royale Energy. According to the industry distribution chart, Royale Energy ranks #999999 out of 704 companies in the Oil & Gas industry.
Is Royale Energy's Debt-to-EBITDA too high?
Royale Energy's current Debt-to-EBITDA is 1.87. The Oil & Gas industry median Debt-to-EBITDA is 2.02. Royale Energy's value of 1.87 is 7.2% below this industry median. Based on the distribution chart, Royale Energy ranks #999999 out of 704 companies in the Oil & Gas industry, which is in the bottom quartile relative to peers.
How does Royale Energy's Debt-to-EBITDA compare to PGNYF and GULTU?
According to the Oil & Gas industry distribution chart, Royale Energy ranks #999999 out of 704 companies for Debt-to-EBITDA. This places Royale Energy in the lower half of its industry. The industry median Debt-to-EBITDA is 2.02. Royale Energy's value of 1.87 is 7.2% below 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 an Oil & Gas company?
The median Debt-to-EBITDA among Oil & Gas companies is 2.02, based on 704 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. Royale Energy's current Debt-to-EBITDA of 1.87 is 7.2% 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 Royale Energy. For the Oil & Gas industry, the median Debt-to-EBITDA is 2.02 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Royale Energy's current Debt-to-EBITDA is 1.87. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Royale Energy stock overvalued right now?
Based on GuruFocus' analysis, Royale Energy (ROYL) is currently considered Significantly Overvalued. The stock's GF Value™ is $0.03, compared to a current price of $0.08 — trading 174.3% above its estimated fair value. The current Debt-to-EBITDA is 1.87 and 7.2% below the Oil & Gas industry median of 2.02. 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 Royale Energy (ROYL), the current Debt-to-EBITDA is 1.87 as of Dec. 2025. 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.
Royale Energy Inc is an independent oil and natural gas producer. The company's business includes the production and sale of oil and natural gas, acquisition of oil and gas lease interests and proved reserves, drilling of both exploratory and development wells, and sales of fractional working interests in wells to be drilled by Royale. Its wells and leases are located in the Sacramento Basin and San Joaquin Basin in California as well as in Utah, Texas, Oklahoma, and Louisiana.
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