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Relatively High Debt to EBITDA Ratio Detected in Shares of Horizon Global in the Auto Parts & Equipment Industry (HZN, MOD, FDML, AXL, MPG)

By James Quinn

Below are the three companies in the Auto Parts & 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.

Horizon Global ranks highest with a a debt to EBITDA ratio of 16.1. Following is Modine Mfg Co with a a debt to EBITDA ratio of 5.2. Federal-Mogul Ho ranks third highest with a a debt to EBITDA ratio of 5.0.

Amer Axle & Mfg follows with a a debt to EBITDA ratio of 4.3, and Metaldyne Perfor rounds out the top five with a a debt to EBITDA ratio of 4.1.

SmarTrend recommended that subscribers consider buying shares of Federal-Mogul Ho on February 29th, 2016 as our technology indicated a new Uptrend was in progress when shares hit $7.41. Since that recommendation, shares of Federal-Mogul Ho have risen 34.7%. We continue to monitor Federal-Mogul Ho for any potential shift so investors can protect gains and will alert SmarTrend subscribers immediately.

Keywords: highest debt to ebitda ratio horizon global modine mfg co federal-mogul ho amer axle & mfg metaldyne perfor

Ticker(s): HZN MOD FDML AXL MPG