Relatively High Debt to EBITDA Ratio Detected in Shares of Consol Energy in the Coal & Consumable Fuels Industry (CNX, BTU, WLB, HNRG, AHGP)
Below are the three companies in the Coal & Consumable Fuels 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.
Consol Energy ranks highest with a a debt to EBITDA ratio of 28.0. Following is Peabody Energy with a a debt to EBITDA ratio of 9.2. Westmoreland Coal ranks third highest with a a debt to EBITDA ratio of 7.9.
Hallador Energy Company follows with a a debt to EBITDA ratio of 2.6, and Alliance Holdings rounds out the top five with a a debt to EBITDA ratio of 1.2.
SmarTrend recommended that subscribers consider buying shares of Alliance Holdings on March 30th, 2016 as our technology indicated a new Uptrend was in progress when shares hit $15.15. Since that recommendation, shares of Alliance Holdings have risen 75.7%. We continue to monitor Alliance Holdings for any potential shift so investors can protect gains and will alert SmarTrend subscribers immediately.
Keywords: highest debt to ebitda ratio consol energy Peabody Energy amex:wlb westmoreland coal hallador energy company alliance holdings