• Return to Headlines

Shares of Genesee & Wyoming Rank the Highest in Terms of Debt to EBITDA Ratio in the Railroads Industry (GWR, NSC, CSX, KSU, UNP)

By Amy Schwartz

Below are the three companies in the Railroads 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.

Genesee & Wyoming ranks highest with a a debt to EBITDA ratio of 4.8. Norfolk Southern is next with a a debt to EBITDA ratio of 2.5. CSX ranks third highest with a a debt to EBITDA ratio of 2.4.

Kansas City Southern follows with a a debt to EBITDA ratio of 2.2, and Union Pacific rounds out the top five with a a debt to EBITDA ratio of 1.6.

SmarTrend recommended that subscribers consider buying shares of Union Pacific on November 10th, 2016 as our technology indicated a new Uptrend was in progress when shares hit $96.91. Since that recommendation, shares of Union Pacific have risen 12.5%. We continue to monitor Union Pacific for any potential shift so investors can protect gains and will alert SmarTrend subscribers immediately.

Keywords: highest debt to ebitda ratio genesee & wyoming Norfolk Southern kansas city southern union pacific