Honghua Group (STU:4HB) Debt-to-EBITDA : 25.35 (As of Dec. 2025) — 232% Above Median

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STU:4HB Honghua Group Ltd STU:4HB
34 GF Score
Price €0.01
GF Value €0.01
! 6 Warning Signs
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What is Honghua Group Debt-to-EBITDA?

Honghua Group STU:4HB 34 Debt-to-EBITDA is 25.35 as of Dec. 2025, which is 232% above its 10-year median of 7.64. GuruFocus rates STU:4HB with a GF Score™ of 34/100 and a GF Value™ of €0.01. The stock has 6 warning signs investors should review. Among 718 Oil & Gas companies, Honghua Group ranks worse than 97.21% on this metric.

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

Honghua Group's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2025 was €311.4 Mil. Honghua Group's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2025 was €287.2 Mil. Honghua Group's annualized EBITDA for the quarter that ended in Dec. 2025 was €23.6 Mil. Honghua Group's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2025 was 25.35.

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

STU:4HB' s Debt-to-EBITDA Range Over the Past 10 Years
Min: -1001.07   Med: 7.64   Max: 34.79
Current: 25.93

During the past 13 years, the highest Debt-to-EBITDA Ratio of Honghua Group was 34.79. The lowest was -1001.07. And the median was 7.64.

STU:4HB's Debt-to-EBITDA is ranked worse than
97.21% of 718 companies
in the Oil & Gas industry
Industry Median: 1.96 vs STU:4HB: 25.93

Honghua Group  (STU:4HB) 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.


Honghua Group Debt-to-EBITDA Related Terms


Honghua Group Debt-to-EBITDA Historical Data

* Premium members only.

The historical data trend for Honghua 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.

Honghua Group Debt-to-EBITDA Chart

Honghua Group Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Debt-to-EBITDA
Get a 7-Day Free Trial Premium Member Only Premium Member Only -10.09 -63.22 34.79 8.19 8.92

Honghua Group Semi-Annual Data
Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
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 -12.26 26.32 20.70 25.87 25.35

STU:4HB vs SLB, BKR, FTI: Debt-to-EBITDA Comparison

For the Oil & Gas Equipment & Services subindustry, Honghua 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.


Honghua Group Debt-to-EBITDA vs Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Honghua Group's Debt-to-EBITDA distribution charts can be found below:

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


STU:4HB
34GF Score
Honghua Group Ltd STU:4HB
Debt-to-EBITDA is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Honghua Group Debt-to-EBITDA Calculation

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

Honghua Group's Debt-to-EBITDA for the fiscal year that ended in Dec. 2025 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(311.384 + 287.239) / 67.112
=8.92

Honghua Group's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2025 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(311.384 + 287.239) / 23.614
=25.35

* 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 (Dec. 2025) EBITDA data.

Frequently Asked Questions Learn more about Debt-to-EBITDA →
What does a Debt-to-EBITDA of 25.35 mean?
Honghua Group (STU:4HB) has a Debt-to-EBITDA of 25.35 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 Honghua Group. This is 232% above median its historical median of 7.64. According to the industry distribution chart, Honghua Group ranks #698 out of 718 companies in the Oil & Gas industry, placing it in the top 97.2%.
Is Honghua Group's Debt-to-EBITDA too high?
Honghua Group's current Debt-to-EBITDA of 25.35 is 232% above median its 10-year median of 7.64. The Oil & Gas industry median Debt-to-EBITDA is 1.96. Honghua Group's value of 25.35 is 1193.4% above this industry median. Based on the distribution chart, Honghua Group ranks #698 out of 718 companies in the Oil & Gas industry, which is in the bottom quartile relative to peers. Overall, Honghua Group has a GF Score™ of 34/100, reflecting its overall financial health beyond just this single metric.
How does Honghua Group's Debt-to-EBITDA compare to SLB and BKR?
According to the Oil & Gas industry distribution chart, Honghua Group ranks #698 out of 718 companies for Debt-to-EBITDA. This places Honghua Group in the lower half of its industry. The industry median Debt-to-EBITDA is 1.96. Honghua Group's value of 25.35 is 1193.4% above this benchmark. While the company's 10-year median is 7.64 vs. the industry median of 1.96, Honghua Group 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 an Oil & Gas company?
The median Debt-to-EBITDA among Oil & Gas companies is 1.96, based on 718 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. Honghua Group's current Debt-to-EBITDA of 25.35 is 1193.4% 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 Honghua Group. For the Oil & Gas industry, the median Debt-to-EBITDA is 1.96 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Honghua Group's current Debt-to-EBITDA is 25.35, which is 232% above median its own 10-year median of 7.64. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Honghua Group stock overvalued right now?
Honghua Group (STU:4HB) has a current Debt-to-EBITDA of 25.35. The stock's GF Value™ is €0.01, compared to a current price of €0.01 — trading 20% above its estimated fair value. The current Debt-to-EBITDA is 25.35, which is 232% above median its 10-year median of 7.64 and 1193.4% above the Oil & Gas industry median of 1.96. Honghua Group's overall GF Score™ is 34/100 with 6 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 Honghua Group (STU:4HB), the current Debt-to-EBITDA is 25.35 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.

Is Honghua Group (STU:4HB) Overvalued in 2026?

Based on GuruFocus' analysis, Honghua Group stock appears to be overvalued. The current stock price of €0.01 is trading 20% above its estimated GF Value™ of €0.01.

Key valuation signals for STU:4HB:

  • Debt-to-EBITDA: 25.35 (232% above median its 10-year median of 7.64)
  • GF Value™: €0.01 vs. price of €0.01 (20% above fair value)
  • GF Score™: 34/100 with 6 warning signs
  • Industry Position: 1193.4% above the Oil & Gas median (#698 of 718)

No single metric tells the full story. See the STU:4HB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Honghua Group Business Description

Industry EnergyOil & Gas
Other Exchanges 00196:Hong Kong
Address 99 East Road, Information Park, Jinniu District, Sichuan, Chengdu, CHN, 610036
Honghua Group Ltd is an oil and gas exploration and development equipment manufacturing and drilling engineering services company. Its product portfolio includes land drilling rigs, electric fracturing equipment, core parts and components of drilling and completion equipment, offshore engineering equipment manufacturing, drilling engineering services, digital products for drilling and completion, as well as new energy equipment and comprehensive services for oil and gas fields, providing customers with a full products and services for energy development. Its segments include land drilling rigs, parts and components, and others; drilling engineering services; fracturing services; and offshore engineering. The land drilling rigs segment derives the majority of the revenue.
34GF Score

Get the complete analysis for STU:4HB

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

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