• Return to Headlines

Highest Debt to EBITDA Ratio in the Automotive Retail Industry Detected in Shares of Carmax Inc (KMX, PAG, SAH, GPI, AN)

By Shiri Gupta

Below are the three companies in the Automotive Retail 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.

Carmax Inc ranks highest with a a debt to EBITDA ratio of 9.5. Penske Automotiv is next with a a debt to EBITDA ratio of 8.1. Sonic Automoti-A ranks third highest with a a debt to EBITDA ratio of 7.8.

Group 1 Automoti follows with a a debt to EBITDA ratio of 6.9, and Autonation Inc rounds out the top five with a a debt to EBITDA ratio of 6.2.

SmarTrend recommended that subscribers consider buying shares of Carmax Inc on April 24th, 2017 as our technology indicated a new Uptrend was in progress when shares hit $59.37. Since that recommendation, shares of Carmax Inc have risen 14.7%. We continue to monitor Carmax Inc for any potential shift so investors can protect gains and will alert SmarTrend subscribers immediately.

Keywords: highest debt to ebitda ratio carmax inc penske automotiv sonic automoti-a group 1 automoti autonation inc

Ticker(s): KMX PAG SAH GPI AN