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Genesee & Wyoming is Among the Companies in the Railroads Industry With the Highest Debt to EBITDA Ratio (GWR, NSC, KSU, CSX, UNP)

By Shiri Gupta

Below are the three companies in the Railroads 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.

Genesee & Wyoming ranks highest with a a debt to EBITDA ratio of 3.9. Following is Norfolk Southern with a a debt to EBITDA ratio of 2.3. Kansas City Southern ranks third highest with a a debt to EBITDA ratio of 2.2.

CSX follows with a a debt to EBITDA ratio of 2.1, and Union Pacific rounds out the top five with a a debt to EBITDA ratio of 1.3.

SmarTrend recommended that subscribers consider buying shares of Genesee & Wyoming on July 1st, 2016 as our technology indicated a new Uptrend was in progress when shares hit $59.74. Since that recommendation, shares of Genesee & Wyoming have risen 7.4%. We continue to monitor Genesee & Wyoming for any potential shift so investors can protect gains and will alert SmarTrend subscribers immediately.

Keywords: highest debt to ebitda ratio genesee & wyoming Norfolk Southern kansas city southern union pacific