Right Way Industrial Co (TPE:1506) Debt-to-EBITDA : 0.80 (As of Mar. 2026) — 70% Above Median

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

TPE:1506 Right Way Industrial Co Ltd TPE:1506
66 GF Score
Price NT$10.20
GF Value NT$12.38
Valuation Modestly Undervalued
! 3 Warning Signs
View Full Analysis

What is Right Way Industrial Co Debt-to-EBITDA?

Right Way Industrial Co TPE:1506 -0.97% 66 Debt-to-EBITDA is 0.80 as of Mar. 2026, which is 70% above its 10-year median of 0.47. GuruFocus rates TPE:1506 with a GF Score™ of 66/100 and a GF Value™ of NT$12.38 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 1,104 Vehicles & Parts companies, Right Way Industrial Co ranks better than 74.46% on this metric.

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

Right Way Industrial Co's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2026 was NT$70 Mil. Right Way Industrial Co's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2026 was NT$1 Mil. Right Way Industrial Co's annualized EBITDA for the quarter that ended in Mar. 2026 was NT$89 Mil. Right Way Industrial Co's annualized Debt-to-EBITDA for the quarter that ended in Mar. 2026 was 0.80.

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 Right Way Industrial Co's Debt-to-EBITDA or its related term are showing as below:

TPE:1506' s Debt-to-EBITDA Range Over the Past 10 Years
Min: -167.94   Med: 0.47   Max: 15.39
Current: 0.86

During the past 13 years, the highest Debt-to-EBITDA Ratio of Right Way Industrial Co was 15.39. The lowest was -167.94. And the median was 0.47.

TPE:1506's Debt-to-EBITDA is ranked better than
74.46% of 1104 companies
in the Vehicles & Parts industry
Industry Median: 2.29 vs TPE:1506: 0.86

Right Way Industrial Co  (TPE:1506) 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.


Right Way Industrial Co Debt-to-EBITDA Related Terms


Right Way Industrial Co Debt-to-EBITDA Historical Data

* Premium members only.

The historical data trend for Right Way Industrial Co'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.

Right Way Industrial Co Debt-to-EBITDA Chart

Right Way Industrial Co 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 5.69 0.34 0.38 0.56 0.78

Right Way Industrial Co Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.40 9.10 0.19 0.73 0.80

TPE:1506 vs ORLY, AZO: Debt-to-EBITDA Comparison

For the Auto Parts subindustry, Right Way Industrial Co'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.


Right Way Industrial Co Debt-to-EBITDA vs Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Right Way Industrial Co's Debt-to-EBITDA distribution charts can be found below:

* The bar in red indicates where Right Way Industrial Co's Debt-to-EBITDA falls into.


TPE:1506
66GF Score
Right Way Industrial Co Ltd TPE:1506
Debt-to-EBITDA is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Right Way Industrial Co Debt-to-EBITDA Calculation

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

Right Way Industrial Co'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
=(60.624 + 1.549) / 79.583
=0.78

Right Way Industrial Co's annualized Debt-to-EBITDA for the quarter that ended in Mar. 2026 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(70.351 + 1.387) / 89.34
=0.80

* 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 (Mar. 2026) EBITDA data.

Frequently Asked Questions Learn more about Debt-to-EBITDA →
What does a Debt-to-EBITDA of 0.80 mean?
Right Way Industrial Co (TPE:1506) has a Debt-to-EBITDA of 0.80 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 Right Way Industrial Co. This is 70% above median its historical median of 0.47. According to the industry distribution chart, Right Way Industrial Co ranks #282 out of 1104 companies in the Vehicles & Parts industry, placing it in the top 25.5%.
Is Right Way Industrial Co's Debt-to-EBITDA too high?
Right Way Industrial Co's current Debt-to-EBITDA of 0.80 is 70% above median its 10-year median of 0.47. The Vehicles & Parts industry median Debt-to-EBITDA is 2.29. Right Way Industrial Co's value of 0.80 is 65.1% below this industry median. Based on the distribution chart, Right Way Industrial Co ranks #282 out of 1104 companies in the Vehicles & Parts industry, which is above the industry midpoint. Overall, Right Way Industrial Co has a GF Score™ of 66/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Right Way Industrial Co's Debt-to-EBITDA compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, Right Way Industrial Co ranks #282 out of 1104 companies for Debt-to-EBITDA. This puts Right Way Industrial Co in the upper half of its industry. The industry median Debt-to-EBITDA is 2.29. Right Way Industrial Co's value of 0.80 is 65.1% below this benchmark. While the company's 10-year median is 0.47 vs. the industry median of 2.29, Right Way Industrial Co 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 Vehicles & Parts company?
The median Debt-to-EBITDA among Vehicles & Parts companies is 2.29, based on 1,104 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. Right Way Industrial Co's current Debt-to-EBITDA of 0.80 is 65.1% 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 Right Way Industrial Co. For the Vehicles & Parts industry, the median Debt-to-EBITDA is 2.29 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Right Way Industrial Co's current Debt-to-EBITDA is 0.80, which is 70% above median its own 10-year median of 0.47. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Right Way Industrial Co stock overvalued right now?
Based on GuruFocus' analysis, Right Way Industrial Co (TPE:1506) is currently considered Modestly Undervalued. The stock's GF Value™ is NT$12.38, compared to a current price of NT$10.20 — trading 17.6% below its estimated fair value. The current Debt-to-EBITDA is 0.80, which is 70% above median its 10-year median of 0.47 and 65.1% below the Vehicles & Parts industry median of 2.29. Right Way Industrial Co's overall GF Score™ is 66/100 with 3 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 Right Way Industrial Co (TPE:1506), the current Debt-to-EBITDA is 0.80 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 Right Way Industrial Co (TPE:1506) Overvalued in 2026?

Based on GuruFocus' analysis, Right Way Industrial Co stock appears to be undervalued. The current stock price of NT$10.20 is trading 17.6% below its estimated GF Value™ of NT$12.38. GuruFocus considers Right Way Industrial Co to be Modestly Undervalued.

Key valuation signals for TPE:1506:

  • Debt-to-EBITDA: 0.80 (70% above median its 10-year median of 0.47)
  • GF Value™: NT$12.38 vs. price of NT$10.20 (17.6% below fair value)
  • GF Score™: 66/100 with 3 warning signs
  • Industry Position: 65.1% below the Vehicles & Parts median (#282 of 1104)

No single metric tells the full story. See the TPE:1506 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Right Way Industrial Co Business Description

Address No.1015, Zhongzheng West Road, Rende District, Tainan, TWN, 717
Right Way Industrial Co Ltd operates in the auto parts industry. The company is engaged in the manufacturing and retail sale of engines, parts of automobiles and motorcycles, pistons, piston rings, and its accessories, components of steering systems, crankshafts, machine tools, and system furniture. The company geographically operates in Taiwan, Malaysia, China, United States, and other countries.
66GF Score

Get the complete analysis for TPE:1506

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

NT$10.20
Price
NT$12.38
GF Value