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

By Amy Schwartz

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 6.8. Vector Group is next with a a debt to EBITDA ratio of 4.5. Philip Morris ranks third highest with a a debt to EBITDA ratio of 2.5.

Universal follows with a a debt to EBITDA ratio of 1.8, and Altria Group rounds out the top five with a a debt to EBITDA ratio of 1.5.

SmarTrend recommended that its subscribers protect gains by selling shares of Alliance One International on February 7th, 2017 by issuing a Downtrend alert when the shares were trading at $15.43. Since that call, shares of Alliance One International have fallen 23.5%. 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 alliance one international vector group philip morris Universal altria group

Ticker(s): AOI VGR PM UVV MO