CENTRE D' ETUDES ET DE RECHERCHE APPLIQUEE EN ENVIRONNEMENT : revenue, balance sheet and financial ratios

In 2022, CENTRE D' ETUDES ET DE RECHERCHE APPLIQUEE EN ENVIRONNEMENT achieves revenue of 1.6 M€. Over the period 2016-2022, the company shows strong growth with a CAGR (compound annual growth rate) of +5.7%. Vs 2021: +2%. After deducting consumption (546 €), gross margin stands at 1.6 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 60 k€, representing 3.8% of revenue. Warning negative scissor effect: despite revenue change (+2%), EBITDA varies by -34%, reducing margin by 2.1 pts. This reflects costs rising faster than revenue. The operating margin remains fragile, requiring cost vigilance. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 147 k€, i.e. 9.3% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 3%. 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 67%. This high autonomy means the company finances most of its assets through equity, a sign of strength. Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 0.2 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 10.4% 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 310.23. 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 0.2x. Danger: operating income does not cover interest charges, unsustainable situation.

Working capital requirement (WCR) measures the cash timing gap between customer collections and supplier/inventory payments. Average customer payment term: 121 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 34 days. The gap of 87 days means the company finances its customers for over a month before being paid relative to supplier payments. This weighs on cash flow. Inventory turnover is 8 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. Overall, WCR represents 90 days of revenue, i.e. 398 k€ to permanently finance. Over 2016-2022, WCR increased by +23%, requiring additional financing.

Based on 63 transactions of similar company sales in 2022, the value of CENTRE D' ETUDES ET DE RECHERCHE APPLIQUEE EN ENVIRONNEMENT is estimated at 123 496 € (range 57 941€ - 215 288€). With an EBITDA of 59 958€, the sector multiple of 0.9x is applied. The price/revenue ratio is 0.16x (conservative valuation). 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.