CONSORTIUM FRANCAIS PAVILLON ET BATIMENT : revenue, balance sheet and financial ratios

In 2018, CONSORTIUM FRANCAIS PAVILLON ET BATIMENT achieves revenue of 41.5 M€. Over the period 2016-2018, the company shows strong growth with a CAGR (compound annual growth rate) of +7.5%. Vs 2017, growth of +14% (36.5 M€ -> 41.5 M€). After deducting consumption (11.7 M€), gross margin stands at 29.8 M€, i.e. a rate of 72%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 584 k€, representing 1.4% of revenue. The operating margin remains fragile, requiring cost vigilance. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 230 k€, i.e. 0.6% 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 28%. The balance between equity and debt is satisfactory. Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 4.6 years of cash flow to repay all financial debt. This ratio remains within usual banking standards. Cash flow represents 1.2% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 150.33. 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 1.5x. Coverage is limited: any activity downturn would jeopardize interest payments.

Working capital requirement (WCR) measures the cash timing gap between customer collections and supplier/inventory payments. Average customer payment term: 170 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 111 days. The gap of 59 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 4 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. Overall, WCR represents 185 days of revenue, i.e. 21.3 M€ to permanently finance. Over 2016-2018, WCR increased by +56%, requiring additional financing.

Based on 113 transactions of similar company sales (all years), the value of CONSORTIUM FRANCAIS PAVILLON ET BATIMENT is estimated at 2 549 307 € (range 1 393 152€ - 7 210 391€). With an EBITDA of 584 398€, the sector multiple of 3.6x is applied. The price/revenue ratio is 0.11x (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.