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Red Light HollandTRUFF -7.36% Debt-to-Equity is 0.11 as of Dec. 2025, which is 83% above its 10-year median of 0.06. The stock has 4 warning signs investors should review. Among 811 Drug Manufacturers companies, Red Light Holland ranks better than 70.65% 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 Red Light Holland's Debt-to-Equity or its related term are showing as below:
TRUFF'
s Debt-to-Equity Range Over the Past 10 Years
Min: -0.42 Med: 0.06 Max: 0.13
Current: 0.11
During the past 7 years, the highest Debt-to-Equity Ratio of Red Light Holland was 0.13. The lowest was -0.42. And the median was 0.06.
TRUFF's Debt-to-Equity is ranked better than 70.65% of 811
companies
in the Drug Manufacturers industry
Industry Median: 0.27
vs TRUFF: 0.11
Red Light Holland (OTCPK:TRUFF) Debt-to-Equity Explanation
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.
Red Light Holland Debt-to-Equity Related Terms
Red Light Holland Debt-to-Equity Historical Data
* Premium members only.
The historical data trend for Red Light Holland'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.
For the Drug Manufacturers - Specialty & Generic subindustry, Red Light Holland'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.
Red Light Holland Debt-to-Equity vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Red Light Holland's Debt-to-Equity distribution charts can be found below:
* The bar in red indicates where Red Light Holland'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.
Red Light Holland (TRUFF) has a Debt-to-Equity of 0.11 as of Dec. 2025. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on Red Light Holland and its competitors. This is 83% above median its historical median of 0.06. According to the industry distribution chart, Red Light Holland ranks #238 out of 811 companies in the Drug Manufacturers industry, placing it in the top 29.3%.
Is Red Light Holland's Debt-to-Equity too high?
Red Light Holland's current Debt-to-Equity of 0.11 is 83% above median its 10-year median of 0.06. The Drug Manufacturers industry median Debt-to-Equity is 0.27. Red Light Holland's value of 0.11 is 59.3% below this industry median. Based on the distribution chart, Red Light Holland ranks #238 out of 811 companies in the Drug Manufacturers industry, which is above the industry midpoint.
How does Red Light Holland's Debt-to-Equity compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Red Light Holland ranks #238 out of 811 companies for Debt-to-Equity. This puts Red Light Holland in the upper half of its industry. The industry median Debt-to-Equity is 0.27. Red Light Holland's value of 0.11 is 59.3% below this benchmark. While the company's 10-year median is 0.06 vs. the industry median of 0.27, Red Light Holland 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 811 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. Red Light Holland's current Debt-to-Equity of 0.11 is 59.3% 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 Red Light Holland 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. Red Light Holland's current Debt-to-Equity is 0.11, which is 83% above median its own 10-year median of 0.06. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Red Light Holland stock overvalued right now?
Based on GuruFocus' analysis, Red Light Holland (TRUFF) is currently considered Modestly Undervalued. The stock's GF Value™ is $0.03, compared to a current price of $0.02 — trading 27% below its estimated fair value. The current Debt-to-Equity is 0.11, which is 83% above median its 10-year median of 0.06 and 59.3% 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 Red Light Holland (TRUFF), the current Debt-to-Equity is 0.11 as of Dec. 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.
Red Light Holland Corp is engaged in the production, growth, and sale of functional mushrooms and mushroom home grow kits in North America and Europe, and a premium brand of psilocybin truffles to the legal, recreational market within the Netherlands. Its products include Microdosing Kit and Merch. Its revenue is comprised of sales of wholesale truffles, cannabis seeds, and other cannabis products and sales of microdose packs.
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