ARAYA INDUSTRIAL Co (TSE:7305) Debt-to-EBITDA : 1.30 (As of Mar. 2026) — 20% Below Median

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TSE:7305 ARAYA INDUSTRIAL Co Ltd TSE:7305
71 GF Score
Price 円2,766.00
GF Value 円2,567.49
Valuation Fairly Valued
! 4 Warning Signs
View Full Analysis

What is ARAYA INDUSTRIAL Co Debt-to-EBITDA?

ARAYA INDUSTRIAL Co TSE:7305 +0.47% 71 Debt-to-EBITDA is 1.30 as of Mar. 2026, which is 20% below its 10-year median of 1.62. GuruFocus rates TSE:7305 with a GF Score™ of 71/100 and a GF Value™ of 円2,567.49 (Fairly Valued). The stock has 4 warning signs investors should review. Among 497 Steel companies, ARAYA INDUSTRIAL Co ranks better than 56.94% on this metric.

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

ARAYA INDUSTRIAL Co's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2026 was 円5,258 Mil. ARAYA INDUSTRIAL Co's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2026 was 円2,553 Mil. ARAYA INDUSTRIAL Co's annualized EBITDA for the quarter that ended in Mar. 2026 was 円5,996 Mil. ARAYA INDUSTRIAL Co's annualized Debt-to-EBITDA for the quarter that ended in Mar. 2026 was 1.30.

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 ARAYA INDUSTRIAL Co's Debt-to-EBITDA or its related term are showing as below:

TSE:7305' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 1.14   Med: 1.62   Max: 3.1
Current: 2.3

During the past 13 years, the highest Debt-to-EBITDA Ratio of ARAYA INDUSTRIAL Co was 3.10. The lowest was 1.14. And the median was 1.62.

TSE:7305's Debt-to-EBITDA is ranked better than
56.94% of 497 companies
in the Steel industry
Industry Median: 2.74 vs TSE:7305: 2.30

ARAYA INDUSTRIAL Co  (TSE:7305) 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.


ARAYA INDUSTRIAL Co Debt-to-EBITDA Related Terms


ARAYA INDUSTRIAL Co Debt-to-EBITDA Historical Data

* Premium members only.

The historical data trend for ARAYA 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.

ARAYA INDUSTRIAL Co Debt-to-EBITDA Chart

ARAYA INDUSTRIAL 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 1.46 1.14 1.71 1.51 2.40

ARAYA INDUSTRIAL Co Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 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 2.79 2.19 6.02 1.30 2.26

TSE:7305 vs NUE, STLD, RS: Debt-to-EBITDA Comparison

For the Steel subindustry, ARAYA 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.


ARAYA INDUSTRIAL Co Debt-to-EBITDA vs Steel Industry

For the Steel industry and Basic Materials sector, ARAYA INDUSTRIAL Co's Debt-to-EBITDA distribution charts can be found below:

* The bar in red indicates where ARAYA INDUSTRIAL Co's Debt-to-EBITDA falls into.


TSE:7305
71GF Score
ARAYA INDUSTRIAL Co Ltd TSE:7305
Debt-to-EBITDA is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

ARAYA INDUSTRIAL Co Debt-to-EBITDA Calculation

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

ARAYA INDUSTRIAL 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
=(5258 + 2553) / 3251
=2.40

ARAYA 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
=(5258 + 2553) / 5996
=1.30

* 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 1.30 mean?
ARAYA INDUSTRIAL Co (TSE:7305) has a Debt-to-EBITDA of 1.30 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 ARAYA INDUSTRIAL Co. This is 20% below median its historical median of 1.62. Over the past decade, ARAYA INDUSTRIAL Co's Debt-to-EBITDA has ranged from 1.14 to 3.10. According to the industry distribution chart, ARAYA INDUSTRIAL Co ranks #214 out of 497 companies in the Steel industry, placing it in the top 43.1%.
Is ARAYA INDUSTRIAL Co's Debt-to-EBITDA too high?
ARAYA INDUSTRIAL Co's current Debt-to-EBITDA of 1.30 is 20% below median its 10-year median of 1.62. Over the past 10 years, this metric has ranged from a low of 1.14 to a high of 3.10. The Steel industry median Debt-to-EBITDA is 2.74. ARAYA INDUSTRIAL Co's value of 1.30 is 52.6% below this industry median. Based on the distribution chart, ARAYA INDUSTRIAL Co ranks #214 out of 497 companies in the Steel industry, which is above the industry midpoint. Overall, ARAYA INDUSTRIAL Co has a GF Score™ of 71/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does ARAYA INDUSTRIAL Co's Debt-to-EBITDA compare to NUE and STLD?
According to the Steel industry distribution chart, ARAYA INDUSTRIAL Co ranks #214 out of 497 companies for Debt-to-EBITDA. This puts ARAYA INDUSTRIAL Co in the upper half of its industry. The industry median Debt-to-EBITDA is 2.74. ARAYA INDUSTRIAL Co's value of 1.30 is 52.6% below this benchmark. Historically, ARAYA INDUSTRIAL Co's own Debt-to-EBITDA has ranged from 1.14 to 3.10 over the past decade. While the company's 10-year median is 1.62 vs. the industry median of 2.74, ARAYA 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 Steel company?
The median Debt-to-EBITDA among Steel companies is 2.74, based on 497 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. ARAYA INDUSTRIAL Co's current Debt-to-EBITDA of 1.30 is 52.6% 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 ARAYA INDUSTRIAL Co. For the Steel industry, the median Debt-to-EBITDA is 2.74 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ARAYA INDUSTRIAL Co's current Debt-to-EBITDA is 1.30, which is 20% below median its own 10-year median of 1.62. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ARAYA INDUSTRIAL Co stock overvalued right now?
Based on GuruFocus' analysis, ARAYA INDUSTRIAL Co (TSE:7305) is currently considered Fairly Valued. The stock's GF Value™ is 円2,567.49, compared to a current price of 円2,766.00 — trading 7.7% above its estimated fair value. The current Debt-to-EBITDA is 1.30, which is 20% below median its 10-year median of 1.62 and 52.6% below the Steel industry median of 2.74. ARAYA INDUSTRIAL Co's overall GF Score™ is 71/100 with 4 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 ARAYA INDUSTRIAL Co (TSE:7305), the current Debt-to-EBITDA is 1.30 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 ARAYA INDUSTRIAL Co (TSE:7305) Overvalued in 2026?

Based on GuruFocus' analysis, ARAYA INDUSTRIAL Co stock appears to be overvalued. The current stock price of 円2,766.00 is trading 7.7% above its estimated GF Value™ of 円2,567.49. GuruFocus considers ARAYA INDUSTRIAL Co to be Fairly Valued.

Key valuation signals for TSE:7305:

  • Debt-to-EBITDA: 1.30 (20% below median its 10-year median of 1.62)
  • GF Value™: 円2,567.49 vs. price of 円2,766.00 (7.7% above fair value)
  • GF Score™: 71/100 with 4 warning signs
  • Industry Position: 52.6% below the Steel median (#214 of 497)

No single metric tells the full story. See the TSE:7305 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


ARAYA INDUSTRIAL Co Business Description

Address 12-12 Minamisenba, Chuo-ku, Osaka, JPN, 542-0081
ARAYA INDUSTRIAL Co Ltd is engaged in the manufacturing and selling of high-quality, high-performance iron, stainless steel pipe and others by metal processing technology Roll Forming. Its product offering includes steel pipe, welfare equipment, rim for the bicycle, pipe cutting machine, pipe/sheet metal processing machine and other special purpose machines. The company's products are used in a wide range of fields including automobiles, motorcycles, bicycles, buildings, furniture, industrial machinery, welfare equipment, and logistics equipment.
71GF Score

Get the complete analysis for TSE:7305

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

円2,766.00
Price
円2,567.49
GF Value