CHAUDRONNERIE INDUSTRIELLE MERIDIONALE : revenue, balance sheet and financial ratios

In 2024, CHAUDRONNERIE INDUSTRIELLE MERIDIONALE achieves revenue of 188 k€. Revenue is declining over the period 2016-2024 (CAGR: -15.2%). Significant drop of -24% vs 2021. After deducting consumption (21 k€), gross margin stands at 167 k€, i.e. a rate of 89%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 20 k€, representing 10.5% of revenue. Positive scissor effect: EBITDA margin improves by +8.9 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 19 k€, i.e. 10.0% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at -161%. 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 -43%. Low autonomy: the company heavily depends on external financing (banks, suppliers). Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 12.0 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 9.9% 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 125.01. 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 4.9x. Financial charges are adequately covered by operations.

Working capital requirement (WCR) measures the cash timing gap between customer collections and supplier/inventory payments. Average customer payment term: 141 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 65 days. The gap of 76 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 223 days (= Average inventory / Cost of goods x 360). This high level ties up cash and potentially creates obsolescence risk. Overall, WCR represents 132 days of revenue, i.e. 69 k€ to permanently finance. Notable WCR improvement over the period (-41%), freeing up cash.

Based on 56 transactions of similar company sales (all years), the value of CHAUDRONNERIE INDUSTRIELLE MERIDIONALE is estimated at 24 730 € (range 15 661€ - 59 294€). With an EBITDA of 19 803€, the sector multiple of 1.0x is applied. The price/revenue ratio is 0.13x (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.