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Relatively High Debt to EBITDA Ratio Detected in Shares of Entergy Corp in the Electric Utilities Industry (ETR, GXP, SO, AEP, DUK)

By Amy Schwartz

Below are the three companies in the Electric Utilities 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.

Entergy Corp ranks highest with a a debt to EBITDA ratio of 16.5. Great Plains Ene is next with a a debt to EBITDA ratio of 9.1. Southern Co ranks third highest with a a debt to EBITDA ratio of 6.0.

American Electri follows with a a debt to EBITDA ratio of 6.0, and Duke Energy Corp rounds out the top five with a a debt to EBITDA ratio of 5.6.

SmarTrend recommended that subscribers consider buying shares of American Electri on August 1st, 2017 as our technology indicated a new Uptrend was in progress when shares hit $70.60. Since that recommendation, shares of American Electri have risen 4.2%. We continue to monitor American Electri for any potential shift so investors can protect gains and will alert SmarTrend subscribers immediately.

Keywords: highest debt to ebitda ratio Entergy Corp great plains ene southern co american electri duke energy corp