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Highest Debt to EBITDA Ratio in the Semiconductor Equipment Industry Detected in Shares of Tessera Holding (TSRA, TER, FORM, KLAC, ENTG)

By James Quinn

Below are the three companies in the Semiconductor Equipment 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.

Tessera Holding ranks highest with a a debt to EBITDA ratio of 7.1. Following is Teradyne Inc with a a debt to EBITDA ratio of 4.1. Formfactor Inc ranks third highest with a a debt to EBITDA ratio of 3.7.

Kla-Tencor Corp follows with a a debt to EBITDA ratio of 2.2, and Entegris Inc rounds out the top five with a a debt to EBITDA ratio of 2.0.

SmarTrend recommended that subscribers consider buying shares of Tessera Holding on August 19th, 2016 as our technology indicated a new Uptrend was in progress when shares hit $33.06. Since that recommendation, shares of Tessera Holding have risen 35.1%. We continue to monitor Tessera Holding for any potential shift so investors can protect gains and will alert SmarTrend subscribers immediately.

Keywords: highest debt to ebitda ratio tessera holding Teradyne Inc formfactor inc kla-tencor corp entegris inc