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Highest Debt to EBITDA Ratio in the Diversified Metals & Mining Industry Detected in Shares of Freeport-McMoRan (FCX, SCCO, CMP, GSM, MTRN)

By Amy Schwartz

Below are the three companies in the Diversified Metals & Mining 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.

Freeport-McMoRan ranks highest with a a debt to EBITDA ratio of 4.8. Following is Southern Copper with a a debt to EBITDA ratio of 2.7. Compass Minerals International ranks third highest with a a debt to EBITDA ratio of 1.9.

Globe Specialty Metals follows with a a debt to EBITDA ratio of 1.0, and Materion rounds out the top five with a a debt to EBITDA ratio of 0.5.

SmarTrend recommended that its subscribers protect gains by selling shares of Compass Minerals International on June 28th, 2016 by issuing a Downtrend alert when the shares were trading at $74.71. Since that call, shares of Compass Minerals International have fallen 7.9%. 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 freeport-mcmoran Southern Copper compass minerals international globe specialty metals materion

Ticker(s): FCX SCCO CMP GSM MTRN