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Summit Materia-A has the Highest Debt to EBITDA Ratio in the Construction Materials Industry (SUM, USCR, HW, VMC, MLM)

By Amy Schwartz

Below are the three companies in the Construction Materials 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.

Summit Materia-A ranks highest with a a debt to EBITDA ratio of 4.8. Us Concrete Inc is next with a a debt to EBITDA ratio of 4.2. Headwaters Inc ranks third highest with a a debt to EBITDA ratio of 4.2.

Vulcan Materials follows with a a debt to EBITDA ratio of 2.4, and Martin Mar Mtls rounds out the top five with a a debt to EBITDA ratio of 1.9.

SmarTrend recommended that subscribers consider buying shares of Headwaters Inc on November 9th, 2016 as our technology indicated a new Uptrend was in progress when shares hit $18.88. Since that recommendation, shares of Headwaters Inc have risen 28.4%. We continue to monitor Headwaters Inc for any potential shift so investors can protect gains and will alert SmarTrend subscribers immediately.

Keywords: highest debt to ebitda ratio summit materia-a us concrete inc headwaters inc Vulcan Materials martin mar mtls

Ticker(s): SUM USCR HW VMC MLM