EVERNEX INTERNATIONAL SAS : revenue, balance sheet and financial ratios

In 2018, EVERNEX INTERNATIONAL SAS achieves revenue of 57.5 M€. Over the period 2015-2018, the company shows strong growth with a CAGR (compound annual growth rate) of +15.0%. Vs 2017: +3%. After deducting consumption (17.4 M€), gross margin stands at 40.1 M€, i.e. a rate of 70%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 8.0 M€, representing 14.0% of revenue. Positive scissor effect: EBITDA margin improves by +6.8 pts, sign of improved operational efficiency. This level of operating margin is satisfactory for the sector. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 2.1 M€, i.e. 3.7% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 29%. This very low level reflects a solid financial structure, offering significant room for future investments or acquisitions. Financial autonomy (= Equity / Total assets x 100) reaches 20%. Low autonomy: the company heavily depends on external financing (banks, suppliers). Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 0.6 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 9.4% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment. Satisfactory level allowing partial financing of growth.

The liquidity ratio (= Current assets / Current liabilities) stands at 111.02. Concretely, the company has €2 of liquid assets for every €1 of short-term debt: no cash risk within 12 months. The interest coverage ratio (= EBIT / Interest expenses) is 13.8x. Operating income very largely covers interest expenses: high safety margin.

Working capital requirement (WCR) measures the cash timing gap between customer collections and supplier/inventory payments. Average customer payment term: 97 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 86 days. The company must finance 11 days of gap between collections and payments. Inventory turnover is 99 days (= Average inventory / Cost of goods x 360). This high level ties up cash and potentially creates obsolescence risk. Overall, WCR represents 52 days of revenue, i.e. 8.2 M€ to permanently finance. Notable WCR improvement over the period (-38%), freeing up cash.

Indicative estimate only : the number of comparable transactions in this sector is limited (42 transactions). This range of 4 459 430€ to 20 958 883€ is provided for information purposes only and requires in-depth analysis to be confirmed.