Akebono Brake Industry Co (TSE:7238) Debt-to-EBITDA : 2.79 (As of Jun. 2026) — 33% Below 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.

TSE:7238 Akebono Brake Industry Co Ltd TSE:7238
52 GF Score
Price 円108.00
GF Value 円62.29
Valuation Significantly Overvalued
! 2 Warning Signs
View Full Analysis

What is Akebono Brake Industry Co Debt-to-EBITDA?

Akebono Brake Industry Co TSE:7238 +0.93% 52 Debt-to-EBITDA is 2.79 as of Jun. 2026, which is 33% below its 10-year median of 4.17. GuruFocus rates TSE:7238 with a GF Score™ of 52/100 and a GF Value™ of 円62.29 (Significantly Overvalued). The stock has 2 warning signs investors should review. Among 1,114 Vehicles & Parts companies, Akebono Brake Industry Co ranks worse than 60.32% on this metric.

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

Akebono Brake Industry Co's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2026 was 円5,006 Mil. Akebono Brake Industry Co's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2026 was 円30,670 Mil. Akebono Brake Industry Co's annualized EBITDA for the quarter that ended in Jun. 2026 was 円12,780 Mil. Akebono Brake Industry Co's annualized Debt-to-EBITDA for the quarter that ended in Jun. 2026 was 2.79.

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 Akebono Brake Industry Co's Debt-to-EBITDA or its related term are showing as below:

TSE:7238' s Debt-to-EBITDA Range Over the Past 10 Years
Min: -13.78   Med: 4.17   Max: 160.04
Current: 2.93

During the past 13 years, the highest Debt-to-EBITDA Ratio of Akebono Brake Industry Co was 160.04. The lowest was -13.78. And the median was 4.17.

TSE:7238's Debt-to-EBITDA is ranked worse than
60.32% of 1114 companies
in the Vehicles & Parts industry
Industry Median: 2.285 vs TSE:7238: 2.93

Akebono Brake Industry Co  (TSE:7238) 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.


Akebono Brake Industry Co Debt-to-EBITDA Related Terms


Akebono Brake Industry Co Debt-to-EBITDA Historical Data

* Premium members only.

The historical data trend for Akebono Brake Industry 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.

Akebono Brake Industry Co Debt-to-EBITDA Chart

Akebono Brake Industry Co Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
Debt-to-EBITDA
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.13 5.04 4.22 2.84 3.10

Akebono Brake Industry Co Quarterly Data
Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26 Jun26
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 3.71 5.54 1.84 3.43 2.79

TSE:7238 vs ORLY, AZO: Debt-to-EBITDA Comparison

For the Auto Parts subindustry, Akebono Brake Industry 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.


Akebono Brake Industry Co Debt-to-EBITDA vs Vehicles & Parts Industry

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

* The bar in red indicates where Akebono Brake Industry Co's Debt-to-EBITDA falls into.


TSE:7238
52GF Score
Akebono Brake Industry Co Ltd TSE:7238
Debt-to-EBITDA is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Akebono Brake Industry Co Debt-to-EBITDA Calculation

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

Akebono Brake Industry Co's Debt-to-EBITDA for the fiscal year 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
=(3618 + 31719) / 11386
=3.10

Akebono Brake Industry Co's annualized Debt-to-EBITDA for the quarter that ended in Jun. 2026 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(5006 + 30670) / 12780
=2.79

* 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 (Jun. 2026) EBITDA data.

Frequently Asked Questions Learn more about Debt-to-EBITDA →
What does a Debt-to-EBITDA of 2.79 mean?
Akebono Brake Industry Co (TSE:7238) has a Debt-to-EBITDA of 2.79 as of Jun. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Akebono Brake Industry Co. This is 33% below median its historical median of 4.17. According to the industry distribution chart, Akebono Brake Industry Co ranks #672 out of 1114 companies in the Vehicles & Parts industry, placing it in the top 60.3%.
Is Akebono Brake Industry Co's Debt-to-EBITDA too high?
Akebono Brake Industry Co's current Debt-to-EBITDA of 2.79 is 33% below median its 10-year median of 4.17. The Vehicles & Parts industry median Debt-to-EBITDA is 2.29. Akebono Brake Industry Co's value of 2.79 is 22.1% above this industry median. Based on the distribution chart, Akebono Brake Industry Co ranks #672 out of 1114 companies in the Vehicles & Parts industry, which is below the industry midpoint. Overall, Akebono Brake Industry Co has a GF Score™ of 52/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Akebono Brake Industry Co's Debt-to-EBITDA compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, Akebono Brake Industry Co ranks #672 out of 1114 companies for Debt-to-EBITDA. This places Akebono Brake Industry Co in the lower half of its industry. The industry median Debt-to-EBITDA is 2.29. Akebono Brake Industry Co's value of 2.79 is 22.1% above this benchmark. While the company's 10-year median is 4.17 vs. the industry median of 2.29, Akebono Brake Industry 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 Vehicles & Parts company?
The median Debt-to-EBITDA among Vehicles & Parts companies is 2.29, based on 1,114 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. Akebono Brake Industry Co's current Debt-to-EBITDA of 2.79 is 22.1% 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 Akebono Brake Industry 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. Akebono Brake Industry Co's current Debt-to-EBITDA is 2.79, which is 33% below median its own 10-year median of 4.17. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Akebono Brake Industry Co stock overvalued right now?
Based on GuruFocus' analysis, Akebono Brake Industry Co (TSE:7238) is currently considered Significantly Overvalued. The stock's GF Value™ is 円62.29, compared to a current price of 円108.00 — trading 73.4% above its estimated fair value. The current Debt-to-EBITDA is 2.79, which is 33% below median its 10-year median of 4.17 and 22.1% above the Vehicles & Parts industry median of 2.29. Akebono Brake Industry Co's overall GF Score™ is 52/100 with 2 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 Akebono Brake Industry Co (TSE:7238), the current Debt-to-EBITDA is 2.79 as of Jun. 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 Akebono Brake Industry Co (TSE:7238) Overvalued in 2026?

Based on GuruFocus' analysis, Akebono Brake Industry Co stock appears to be overvalued. The current stock price of 円108.00 is trading 73.4% above its estimated GF Value™ of 円62.29. GuruFocus considers Akebono Brake Industry Co to be Significantly Overvalued.

Key valuation signals for TSE:7238:

  • Debt-to-EBITDA: 2.79 (33% below median its 10-year median of 4.17)
  • GF Value™: 円62.29 vs. price of 円108.00 (73.4% above fair value)
  • GF Score™: 52/100 with 2 warning signs
  • Industry Position: 22.1% above the Vehicles & Parts median (#672 of 1114)

No single metric tells the full story. See the TSE:7238 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Akebono Brake Industry Co Business Description

Address 19-5 Nihonbashi Koami-cho, Chuo-ku, Tokyo, JPN, 103-8534
Akebono Brake Industry Co Ltd engages in the manufacture and sale of brakes and its components. Its brakes are widely used in various applications, such as passenger and commercial vehicles, motorcycles, rail vehicles and industrial machinery. The firm's product portfolio consists of automobile brakes, motorcycle brakes, rolling stock brakes, industrial machinery brakes, sensors, and concept brake systems.
52GF Score

Get the complete analysis for TSE:7238

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

円108.00
Price
円62.29
GF Value