• Return to Headlines

Highest Debt to EBITDA Ratio in the Casinos & Gaming Industry Detected in Shares of Scientific Games (SGMS, WYNN, MPEL, BYD, PNK)

By Amy Schwartz

Below are the three companies in the Casinos & Gaming 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.

Scientific Games ranks highest with a a debt to EBITDA ratio of 64.6. Wynn Resorts is next with a a debt to EBITDA ratio of 8.4. Melco Crown Entertainment ranks third highest with a a debt to EBITDA ratio of 6.5.

Boyd Gaming follows with a a debt to EBITDA ratio of 6.5, and Pinnacle Entertainment rounds out the top five with a a debt to EBITDA ratio of 6.3.

SmarTrend recommended that subscribers consider buying shares of Scientific Games on June 2nd, 2016 as our technology indicated a new Uptrend was in progress when shares hit $9.90. Since that recommendation, shares of Scientific Games have risen 9.5%. We continue to monitor Scientific Games for any potential shift so investors can protect gains and will alert SmarTrend subscribers immediately.

Keywords: highest debt to ebitda ratio scientific games wynn resorts melco crown entertainment boyd gaming pinnacle entertainment