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Shares of Koppers Holdings Rank the Highest in Terms of Debt to EBITDA Ratio in the Commodity Chemicals Industry (KOP, TG, KRO, MEOH, CBT)

By David Diaz

Below are the three companies in the Commodity Chemicals 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.

Koppers Holdings ranks highest with a a debt to EBITDA ratio of 6.0. Following is Tredegar with a a debt to EBITDA ratio of 4.0. Kronos Worldwide ranks third highest with a a debt to EBITDA ratio of 3.7.

Methanex follows with a a debt to EBITDA ratio of 2.5, and Cabot rounds out the top five with a a debt to EBITDA ratio of 2.4.

SmarTrend recommended that subscribers consider buying shares of Koppers Holdings on January 29th, 2016 as our technology indicated a new Uptrend was in progress when shares hit $16.36. Since that recommendation, shares of Koppers Holdings have risen 89.4%. We continue to monitor Koppers Holdings for any potential shift so investors can protect gains and will alert SmarTrend subscribers immediately.

Keywords: highest debt to ebitda ratio koppers holdings tredegar kronos worldwide methanex cabot