CENTRALE PHOTOVOLTAIQUE DE VALENSOLE : revenue, balance sheet and financial ratios

In 2024, CENTRALE PHOTOVOLTAIQUE DE VALENSOLE achieves revenue of 5.6 M€. Activity remains stable over the period (CAGR: -0.2%). Significant drop of -45% vs 2023. After deducting consumption (0 €), gross margin stands at 5.6 M€, i.e. a rate of 100%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 4.7 M€, representing 83.7% of revenue. Warning negative scissor effect: despite revenue change (-45%), EBITDA varies by -50%, reducing margin by 8.7 pts. This reflects costs rising faster than revenue. This high EBITDA margin provides strong self-financing capacity and resilience to uncertainties. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 1.6 M€, i.e. 29.1% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 146%. Debt level is high: negotiating margin with banks is reduced. Financial autonomy (= Equity / Total assets x 100) reaches 40%. The balance between equity and debt is satisfactory. Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 2.7 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 70.2% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment. This high level provides strong self-financing capacity.

The liquidity ratio (= Current assets / Current liabilities) stands at 345.70. 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 17.3x. 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: 52 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 45 days. The company must finance 7 days of gap between collections and payments. Inventory turnover is 127 days (= Average inventory / Cost of goods x 360). This high level ties up cash and potentially creates obsolescence risk. Overall, WCR represents 96 days of revenue, i.e. 1.5 M€ to permanently finance. Over 2016-2024, WCR increased by +51%, requiring additional financing.

Based on 85 transactions of similar company sales (all years), the value of CENTRALE PHOTOVOLTAIQUE DE VALENSOLE is estimated at 7 787 896 € (range 1 091 729€ - 30 702 939€). With an EBITDA of 4 696 725€, the sector multiple of 2.4x is applied. The price/revenue ratio is 0.69x (in line with sector norms). This multiples method compares the actual sale price of similar companies to their financial indicators (Revenue, EBITDA, Net Income). It provides a market-based indicative estimate.
Medium reliability: estimate to be confirmed with in-depth analysis.