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Top 3 Companies in the Specialty Stores Industry With the Highest Debt to EBITDA Ratio (HZO, ZLC, OMX)

Published on Tue, 01/22/2013 - 11:16
By Adrienne Chilton

Below are the three companies in the Specialty Stores 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.

MarineMax (NYSE:HZO) is highest with a debt to EBITDA ratio of 10.2. MarineMax, Inc. retails recreational boats in the United States. The Company's brands include Sea Ray, Boston Whaler, and Hatteras. MarineMax sells new and used boats, related marine products, and is involved in boat brokerage through its wholly owned subsidiary. MarineMax has traded 48,000 shares thus far today, vs. average volume of 101,000 shares per day. The stock has matched the Dow (with a 0.1% move) and outperformed the S&P 500 (0.1% to the S&P's -0.2%) during today's trading.

Zale (NYSE:ZLC) is next with a debt to EBITDA ratio of 9.5.

Finishing up the top three is OfficeMax (NYSE:OMX), with a debt to EBITDA ratio of 5.2.

By Adrienne Chilton