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Highest Debt to EBITDA Ratio in the Tobacco Industry Detected in Shares of Alliance One International (AOI, VGR, RAI, PM, UVV)

By Nick Russo

Below are the three companies in the Tobacco 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.

Alliance One International ranks highest with a a debt to EBITDA ratio of 9.7. Following is Vector Group with a a debt to EBITDA ratio of 3.7. Reynolds American ranks third highest with a a debt to EBITDA ratio of 2.7.

Philip Morris follows with a a debt to EBITDA ratio of 2.4, and Universal rounds out the top five with a a debt to EBITDA ratio of 2.0.

SmarTrend recommended that subscribers consider buying shares of Universal on May 10th, 2016 as our technology indicated a new Uptrend was in progress when shares hit $56.17. Since that recommendation, shares of Universal have risen 6.0%. We continue to monitor Universal for any potential shift so investors can protect gains and will alert SmarTrend subscribers immediately.

Keywords: highest debt to ebitda ratio alliance one international vector group Reynolds American philip morris Universal