Labat AfricaJSE:LAB Debt-to-Equity is 0.10 as of Nov. 2025, which is 38% below its 10-year median of 0.16. The stock has 5 warning signs investors should review. Among 809 Drug Manufacturers companies, Labat Africa ranks better than 71.82% on this metric.
A high debt to equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense.
The historical rank and industry rank for Labat Africa's Debt-to-Equity or its related term are showing as below:
JSE:LAB'
s Debt-to-Equity Range Over the Past 10 Years
Min: -0.74 Med: 0.16 Max: 31.86
Current: 0.1
During the past 13 years, the highest Debt-to-Equity Ratio of Labat Africa was 31.86. The lowest was -0.74. And the median was 0.16.
JSE:LAB's Debt-to-Equity is ranked better than 71.82% of 809
companies
in the Drug Manufacturers industry
Industry Median: 0.27
vs JSE:LAB: 0.10
Because a company can increase its ROE % by having more financial leverage, it is important to watch the leverage ratio when investing in high ROE % companies.
Labat Africa Debt-to-Equity Related Terms
Labat Africa Debt-to-Equity Historical Data
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The historical data trend for Labat Africa's Debt-to-Equity 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.
JSE:LAB vs ZTS, UTHR, VTRS: Debt-to-Equity Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Labat Africa's Debt-to-Equity, along with its competitors' market caps and Debt-to-Equity 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.
Labat Africa Debt-to-Equity vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Labat Africa's Debt-to-Equity distribution charts can be found below:
* The bar in red indicates where Labat Africa's Debt-to-Equity falls into.
* 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.
Labat Africa (JSE:LAB) has a Debt-to-Equity of 0.10 as of Nov. 2025. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on Labat Africa and its competitors. This is 38% below median its historical median of 0.16. According to the industry distribution chart, Labat Africa ranks #228 out of 809 companies in the Drug Manufacturers industry, placing it in the top 28.2%.
Is Labat Africa's Debt-to-Equity too high?
Labat Africa's current Debt-to-Equity of 0.10 is 38% below median its 10-year median of 0.16. The Drug Manufacturers industry median Debt-to-Equity is 0.27. Labat Africa's value of 0.10 is 63% below this industry median. Based on the distribution chart, Labat Africa ranks #228 out of 809 companies in the Drug Manufacturers industry, which is above the industry midpoint.
How does Labat Africa's Debt-to-Equity compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Labat Africa ranks #228 out of 809 companies for Debt-to-Equity. This puts Labat Africa in the upper half of its industry. The industry median Debt-to-Equity is 0.27. Labat Africa's value of 0.10 is 63% below this benchmark. While the company's 10-year median is 0.16 vs. the industry median of 0.27, Labat Africa 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-Equity for a Drug Manufacturers company?
The median Debt-to-Equity among Drug Manufacturers companies is 0.27, based on 809 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-Equity significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Labat Africa's current Debt-to-Equity of 0.10 is 63% 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-Equity mean?
A high Debt-to-Equity can signal that a stock is expensive relative to its fundamentals. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on Labat Africa and its competitors. For the Drug Manufacturers industry, the median Debt-to-Equity is 0.27 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Labat Africa's current Debt-to-Equity is 0.10, which is 38% below median its own 10-year median of 0.16. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Labat Africa stock overvalued right now?
Based on GuruFocus' analysis, Labat Africa (JSE:LAB) is currently considered Possible Value Trap. The stock's GF Value™ is R0.18, compared to a current price of R0.04 — trading 77.8% below its estimated fair value. The current Debt-to-Equity is 0.10, which is 38% below median its 10-year median of 0.16 and 63% below the Drug Manufacturers industry median of 0.27. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-Equity calculated?
Debt-to-Equity is calculated from a company's financial statements. For Labat Africa (JSE:LAB), the current Debt-to-Equity is 0.10 as of Nov. 2025. 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.
Labat Africa Ltd is an investment holding company. Through its subsidiaries, the company operates in the following segments; Technology, Head office, and Healthcare. The Technology segment manufactures and distributes integrated circuits South African Micro - Electronic Systems. Head office operations provide management services, logistics and seeks further investment opportunities for the Group. The Healthcare segment generates maximum revenue for the company and focusses on medical cannabis industry in South Africa. Geographically, the company carries out its business operations in South Africa.
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