gategroup Holding AG (XSWX:GATE) Debt-to-EBITDA : 4.55 (As of Dec. 2019) — 35% Above Median


What is gategroup Holding AG Debt-to-EBITDA?

gategroup Holding AG XSWX:GATE Debt-to-EBITDA is 4.55 as of Dec. 2019, which is 35% above its 10-year median of 3.38. The stock has 8 warning signs investors should review.

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

gategroup Holding AG's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2019 was CHF296.00 Mil. gategroup Holding AG's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2019 was CHF1,048.10 Mil. gategroup Holding AG's annualized EBITDA for the quarter that ended in Dec. 2019 was CHF295.30 Mil. gategroup Holding AG's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2019 was 4.55.

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 gategroup Holding AG's Debt-to-EBITDA or its related term are showing as below:

XSWX:GATE' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 2.7   Med: 3.38   Max: 6.35
Current: 4.55

During the past 12 years, the highest Debt-to-EBITDA Ratio of gategroup Holding AG was 6.35. The lowest was 2.70. And the median was 3.38.

XSWX:GATE's Debt-to-EBITDA is not ranked
in the Transportation industry.
Industry Median: 2.63 vs XSWX:GATE: 4.55

gategroup Holding AG  (XSWX:GATE) 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.


gategroup Holding AG Debt-to-EBITDA Related Terms


gategroup Holding AG Debt-to-EBITDA Historical Data

* Premium members only.

The historical data trend for gategroup Holding AG'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.

gategroup Holding AG Debt-to-EBITDA Chart

gategroup Holding AG Annual Data
Trend Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19
Debt-to-EBITDA
Get a 7-Day Free Trial Premium Member Only Premium Member Only 6.35 5.03 3.10 3.47 4.55

gategroup Holding AG Semi-Annual Data
Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19
Debt-to-EBITDA Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.35 5.03 3.10 3.47 4.55

XSWX:GATE vs CAAP, AAWW: Debt-to-EBITDA Comparison

For the Airports & Air Services subindustry, gategroup Holding AG'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.


gategroup Holding AG Debt-to-EBITDA vs Transportation Industry

For the Transportation industry and Industrials sector, gategroup Holding AG's Debt-to-EBITDA distribution charts can be found below:

* The bar in red indicates where gategroup Holding AG's Debt-to-EBITDA falls into.



gategroup Holding AG Debt-to-EBITDA Calculation

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

gategroup Holding AG's Debt-to-EBITDA for the fiscal year that ended in Dec. 2019 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(296 + 1048.1) / 295.3
=4.55

gategroup Holding AG's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2019 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(296 + 1048.1) / 295.3
=4.55

* 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 (Dec. 2019) EBITDA data.

Frequently Asked Questions Learn more about Debt-to-EBITDA →
What does a Debt-to-EBITDA of 4.55 mean?
gategroup Holding AG (XSWX:GATE) has a Debt-to-EBITDA of 4.55 as of Dec. 2019. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on gategroup Holding AG. This is 35% above median its historical median of 3.38. Over the past decade, gategroup Holding AG's Debt-to-EBITDA has ranged from 2.70 to 6.35.
Is gategroup Holding AG's Debt-to-EBITDA too high?
gategroup Holding AG's current Debt-to-EBITDA of 4.55 is 35% above median its 10-year median of 3.38. Over the past 10 years, this metric has ranged from a low of 2.70 to a high of 6.35. The Transportation industry median Debt-to-EBITDA is 2.63. gategroup Holding AG's value of 4.55 is 73% above this industry median.
How does gategroup Holding AG's Debt-to-EBITDA compare to CAAP and AAWW?
gategroup Holding AG's Debt-to-EBITDA of 4.55 can be compared against companies in the Transportation industry. The industry median Debt-to-EBITDA is 2.63. gategroup Holding AG's value of 4.55 is 73% above this benchmark. Historically, gategroup Holding AG's own Debt-to-EBITDA has ranged from 2.70 to 6.35 over the past decade. While the company's 10-year median is 3.38 vs. the industry median of 2.63, gategroup Holding AG 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 Transportation company?
The median Debt-to-EBITDA among Transportation companies is 2.63, based on 867 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. gategroup Holding AG's current Debt-to-EBITDA of 4.55 is 73% 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 gategroup Holding AG. For the Transportation industry, the median Debt-to-EBITDA is 2.63 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. gategroup Holding AG's current Debt-to-EBITDA is 4.55, which is 35% above median its own 10-year median of 3.38. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is gategroup Holding AG stock overvalued right now?
gategroup Holding AG (XSWX:GATE) has a current Debt-to-EBITDA of 4.55. The current Debt-to-EBITDA is 4.55, which is 35% above median its 10-year median of 3.38 and 73% above the Transportation industry median of 2.63. 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 gategroup Holding AG (XSWX:GATE), the current Debt-to-EBITDA is 4.55 as of Dec. 2019. 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.

gategroup Holding AG Business Description

Address Sagereistrasse 20, Glattbrugg, CHE, CH-8152
gategroup Holding AG is engaged in the operation of airline catering and provision of related services in Switzerland. It provides airline catering, retail and technology services, onboard service equipment, and supply chain and logistics solutions. Its segments include EMEA, North America, Latin America and Asia Pacific regions.