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Kato Works CoTSE:6390 +0.53%56 Debt-to-EBITDA is 10.79 as of Mar. 2026, which is 98% above its 10-year median of 5.45. GuruFocus rates TSE:6390 with a GF Score™ of 56/100 and a GF Value™ of 円1,346.17 (Fairly Valued). The stock has 6 warning signs investors should review. Among 178 Farm & Heavy Construction Machinery companies, Kato Works Co ranks worse than 81.46% 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 Kato Works Co's Debt-to-EBITDA or its related term are showing as below:
TSE:6390'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: -337.02 Med: 5.45 Max: 37.41
Current: 5.15
During the past 13 years, the highest Debt-to-EBITDA Ratio of Kato Works Co was 37.41. The lowest was -337.02. And the median was 5.45.
TSE:6390's Debt-to-EBITDA is ranked worse than 81.46% of 178
companies
in the Farm & Heavy Construction Machinery industry
Industry Median: 1.72
vs TSE:6390: 5.15
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.
Kato Works Co Debt-to-EBITDA Related Terms
Kato Works Co Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for Kato Works 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.
TSE:6390 vs CAT, DE, PCAR: Debt-to-EBITDA Comparison
For the Farm & Heavy Construction Machinery subindustry, Kato Works 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.
Kato Works Co Debt-to-EBITDA vs Farm & Heavy Construction Machinery Industry
For the Farm & Heavy Construction Machinery industry and Industrials sector, Kato Works Co's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Kato Works Co'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 (Mar. 2026) EBITDA data.
Kato Works Co (TSE:6390) has a Debt-to-EBITDA of 10.79 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 Kato Works Co. This is 98% above median its historical median of 5.45. According to the industry distribution chart, Kato Works Co ranks #145 out of 178 companies in the Farm & Heavy Construction Machinery industry, placing it in the top 81.5%.
Is Kato Works Co's Debt-to-EBITDA too high?
Kato Works Co's current Debt-to-EBITDA of 10.79 is 98% above median its 10-year median of 5.45. The Farm & Heavy Construction Machinery industry median Debt-to-EBITDA is 1.72. Kato Works Co's value of 10.79 is 527.3% above this industry median. Based on the distribution chart, Kato Works Co ranks #145 out of 178 companies in the Farm & Heavy Construction Machinery industry, which is in the bottom quartile relative to peers. Overall, Kato Works Co has a GF Score™ of 56/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Kato Works Co's Debt-to-EBITDA compare to CAT and DE?
According to the Farm & Heavy Construction Machinery industry distribution chart, Kato Works Co ranks #145 out of 178 companies for Debt-to-EBITDA. This places Kato Works Co in the lower half of its industry. The industry median Debt-to-EBITDA is 1.72. Kato Works Co's value of 10.79 is 527.3% above this benchmark. While the company's 10-year median is 5.45 vs. the industry median of 1.72, Kato Works Co 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 Farm & Heavy Construction Machinery company?
The median Debt-to-EBITDA among Farm & Heavy Construction Machinery companies is 1.72, based on 178 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. Kato Works Co's current Debt-to-EBITDA of 10.79 is 527.3% 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 Kato Works Co. For the Farm & Heavy Construction Machinery industry, the median Debt-to-EBITDA is 1.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kato Works Co's current Debt-to-EBITDA is 10.79, which is 98% above median its own 10-year median of 5.45. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kato Works Co stock overvalued right now?
Based on GuruFocus' analysis, Kato Works Co (TSE:6390) is currently considered Fairly Valued. The stock's GF Value™ is 円1,346.17, compared to a current price of 円1,322.00 — trading 1.8% below its estimated fair value. The current Debt-to-EBITDA is 10.79, which is 98% above median its 10-year median of 5.45 and 527.3% above the Farm & Heavy Construction Machinery industry median of 1.72. Kato Works Co's overall GF Score™ is 56/100 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 Kato Works Co (TSE:6390), the current Debt-to-EBITDA is 10.79 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 Kato Works Co (TSE:6390) Overvalued in 2026?
Based on GuruFocus' analysis, Kato Works Co stock appears to be undervalued.
The current stock price of 円1,322.00 is trading 1.8% below its estimated GF Value™ of 円1,346.17.
GuruFocus considers Kato Works Co to be Fairly Valued.
Key valuation signals for TSE:6390:
Debt-to-EBITDA: 10.79 (98% above median its 10-year median of 5.45)
GF Value™: 円1,346.17 vs. price of 円1,322.00 (1.8% below fair value)
Industry Position: 527.3% above the Farm & Heavy Construction Machinery median (#145 of 178)
No single metric tells the full story. See the TSE:6390 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kato Works Co Ltd is a Japan-based machinery manufacturer. The company is mainly engaged in the manufacturing and sales of machinery used for the lifting and construction industries. It offers various construction equipment, mobile cranes, and industrial equipment, including truck cranes, hydraulic excavators, rough terrain cranes, all-terrain cranes, crawler cranes, mini excavators, earth boring rigs, vacuum trucks, street sweepers, and snow sweepers. Kato also offers related spare parts and services. The group's reportable segments are Japan, which is its key revenue-generating market, China, Europe, and Others.
56GF Score
Get the complete analysis for TSE:6390
Debt-to-EBITDA is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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