Novares Group (XPAR:NVS) Debt-to-EBITDA : 5.62 (As of Jun. 2017)

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What is Novares Group Debt-to-EBITDA?

Novares Group XPAR:NVS Debt-to-EBITDA is 5.62 as of Jun. 2017.

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

Novares Group's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2017 was €47.64 Mil. Novares Group's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2017 was €216.24 Mil. Novares Group's annualized EBITDA for the quarter that ended in Jun. 2017 was €47.00 Mil. Novares Group's annualized Debt-to-EBITDA for the quarter that ended in Jun. 2017 was 5.61.

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

XPAR:NVS's Debt-to-EBITDA is not ranked *
in the Vehicles & Parts industry.
Industry Median: 2.275
* Ranked among companies with meaningful Debt-to-EBITDA only.

Novares Group  (XPAR:NVS) 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.


Novares Group Debt-to-EBITDA Related Terms


Novares Group Debt-to-EBITDA Historical Data

* Premium members only.

The historical data trend for Novares 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.

Novares Group Debt-to-EBITDA Chart

Novares Group Annual Data
Trend Dec16
Debt-to-EBITDA
8.45

Novares Group Semi-Annual Data
Jun16 Dec16 Jun17
Debt-to-EBITDA 0.00 13.58 5.62

XPAR:NVS vs : Debt-to-EBITDA Comparison

For the Auto Parts subindustry, Novares 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.


Novares Group Debt-to-EBITDA vs Vehicles & Parts Industry

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

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



Novares Group Debt-to-EBITDA Calculation

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

Novares Group's Debt-to-EBITDA for the fiscal year that ended in Dec. 2016 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(97.66 + 198.099) / 35.01
=8.45

Novares Group's annualized Debt-to-EBITDA for the quarter that ended in Jun. 2017 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(47.642 + 216.243) / 46.997
=5.61

* 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 one times the quarterly (Jun. 2017) EBITDA data.

Frequently Asked Questions Learn more about Debt-to-EBITDA →
What does a Debt-to-EBITDA of 5.62 mean?
Novares Group (XPAR:NVS) has a Debt-to-EBITDA of 5.62 as of Jun. 2017. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Novares Group.
Is Novares Group's Debt-to-EBITDA too high?
Novares Group's current Debt-to-EBITDA is 5.62. The Vehicles & Parts industry median Debt-to-EBITDA is 2.28. Novares Group's value of 5.62 is 147% above this industry median.
How does Novares Group's Debt-to-EBITDA compare to ?
Novares Group's Debt-to-EBITDA of 5.62 can be compared against companies in the Vehicles & Parts industry. The industry median Debt-to-EBITDA is 2.28. Novares Group's value of 5.62 is 147% above this benchmark. 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 2.28, based on 1,102 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. Novares Group's current Debt-to-EBITDA of 5.62 is 147% 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 Novares Group. For the Vehicles & Parts industry, the median Debt-to-EBITDA is 2.28 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Novares Group's current Debt-to-EBITDA is 5.62. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Novares Group stock overvalued right now?
Novares Group (XPAR:NVS) has a current Debt-to-EBITDA of 5.62. The current Debt-to-EBITDA is 5.62 and 147% above the Vehicles & Parts industry median of 2.28. 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 Novares Group (XPAR:NVS), the current Debt-to-EBITDA is 5.62 as of Jun. 2017. 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.

Novares Group Business Description

Comparable Companies
Address 361 avenue du General de Gaulle, Clamart, Paris, FRA, FR-92140
Novares Group SA is a plastic solutions provider that designs and manufactures complex components and systems serving the automotive industry. The company designs and produces automotive parts and specializes in technical plastic injection for automobiles. Its product portfolio consists of Engine Components, Bezels and Clusters, Air Vents and Decoration Trims, Interior and Car Body Trim, Handles, Exterior Paint and Surfaces, and E-Powertrain Components.