Builders FirstSource has the Highest Debt to EBITDA Ratio in the Building Products Industry (BLDR, USG, NCS, GFF, WMS)
Below are the three companies in the Building Products industry with the highest debt to EBITDA ratios. This ratio indicates how many years of EBITDA would be necessary in order to pay back all the debt (assuming Debt and EBITDA are constant). Typically, this ratio is considered to be alarming when it is greater than 3.0 but this can vary and should be looked at within the context of the industry.
Builders FirstSource ranks highest with a a debt to EBITDA ratio of 20.2. Following is USG with a a debt to EBITDA ratio of 5.4. NCI Building Systems ranks third highest with a a debt to EBITDA ratio of 5.1.
Griffon follows with a a debt to EBITDA ratio of 4.9, and WMS Industries rounds out the top five with a a debt to EBITDA ratio of 3.4.
SmarTrend recommended that its subscribers protect gains by selling shares of WMS Industries on August 11th, 2016 by issuing a Downtrend alert when the shares were trading at $25.73. Since that call, shares of WMS Industries have fallen 8.8%. We are now looking for when a new Uptrend will commence and will alert SmarTrend subscribers in real time.
Keywords: highest debt to ebitda ratio builders firstsource nci building systems griffon wms industries