ZEK (Zekelman Industries) Debt-to-EBITDA : 2.10 (As of Jun. 2018)

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What is Zekelman Industries Debt-to-EBITDA?

Zekelman Industries ZEK Debt-to-EBITDA is 2.10 as of Jun. 2018.

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

Zekelman Industries's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2018 was $9.22 Mil. Zekelman Industries's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2018 was $1,305.20 Mil. Zekelman Industries's annualized EBITDA for the quarter that ended in Jun. 2018 was $626.23 Mil. Zekelman Industries's annualized Debt-to-EBITDA for the quarter that ended in Jun. 2018 was 2.10.

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 Zekelman Industries's Debt-to-EBITDA or its related term are showing as below:

ZEK's Debt-to-EBITDA is not ranked *
in the Steel industry.
Industry Median: 2.87
* Ranked among companies with meaningful Debt-to-EBITDA only.

Zekelman Industries  (NYSE:ZEK) 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.


Zekelman Industries Debt-to-EBITDA Related Terms


Zekelman Industries Debt-to-EBITDA Historical Data

* Premium members only.

The historical data trend for Zekelman Industries'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.

Zekelman Industries Debt-to-EBITDA Chart

Zekelman Industries Annual Data
Trend Sep15 Sep16 Sep17
Debt-to-EBITDA
0.00 4.53 3.55

Zekelman Industries Quarterly Data
Sep15 Sep16 Jun17 Sep17 Jun18
Debt-to-EBITDA N/A N/A 0.00 3.30 2.10

ZEK vs : Debt-to-EBITDA Comparison

For the Steel subindustry, Zekelman Industries'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.


Zekelman Industries Debt-to-EBITDA vs Steel Industry

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

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



Zekelman Industries Debt-to-EBITDA Calculation

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

Zekelman Industries's Debt-to-EBITDA for the fiscal year that ended in Sep. 2017 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(10.318 + 1289.02) / 365.746
=3.55

Zekelman Industries's annualized Debt-to-EBITDA for the quarter that ended in Jun. 2018 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(9.22 + 1305.202) / 626.228
=2.10

* 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. 2018) EBITDA data.

Frequently Asked Questions Learn more about Debt-to-EBITDA →
What does a Debt-to-EBITDA of 2.10 mean?
Zekelman Industries (ZEK) has a Debt-to-EBITDA of 2.10 as of Jun. 2018. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Zekelman Industries.
Is Zekelman Industries' Debt-to-EBITDA too high?
Zekelman Industries' current Debt-to-EBITDA is 2.10. The Steel industry median Debt-to-EBITDA is 2.87. Zekelman Industries' value of 2.10 is 26.8% below this industry median.
How does Zekelman Industries' Debt-to-EBITDA compare to ?
Zekelman Industries' Debt-to-EBITDA of 2.10 can be compared against companies in the Steel industry. The industry median Debt-to-EBITDA is 2.87. Zekelman Industries' value of 2.10 is 26.8% below 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 Steel company?
The median Debt-to-EBITDA among Steel companies is 2.87, based on 494 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. Zekelman Industries's current Debt-to-EBITDA of 2.10 is 26.8% 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 Zekelman Industries. For the Steel industry, the median Debt-to-EBITDA is 2.87 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zekelman Industries's current Debt-to-EBITDA is 2.10. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zekelman Industries stock overvalued right now?
Zekelman Industries (ZEK) has a current Debt-to-EBITDA of 2.10. The current Debt-to-EBITDA is 2.10 and 26.8% below the Steel industry median of 2.87. 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 Zekelman Industries (ZEK), the current Debt-to-EBITDA is 2.10 as of Jun. 2018. 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.

Zekelman Industries Business Description

Comparable Companies
Address 227 West Monroe Street, Suite 2600, Chicago, IL, USA, 60606