CONSTRUCTION MECANIQUES DU BUGEY : revenue, balance sheet and financial ratios

In 2024, CONSTRUCTION MECANIQUES DU BUGEY achieves revenue of 2.7 M€. Over the period 2015-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +12.8%. Significant drop of -13% vs 2023. After deducting consumption (884 k€), gross margin stands at 1.8 M€, i.e. a rate of 68%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 163 k€, representing 6.0% of revenue. The operating margin remains fragile, requiring cost vigilance. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 89 k€, i.e. 3.3% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 83%. Debt level is high: negotiating margin with banks is reduced. Financial autonomy (= Equity / Total assets x 100) reaches 35%. The balance between equity and debt is satisfactory. Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 1.2 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 3.9% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 166.79. 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 15.9x. 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: 116 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 72 days. The gap of 44 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 27 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. Overall, WCR represents 162 days of revenue, i.e. 1.2 M€ to permanently finance. Over 2015-2024, WCR increased by +651%, requiring additional financing.

Based on 56 transactions of similar company sales (all years), the value of CONSTRUCTION MECANIQUES DU BUGEY is estimated at 223 673 € (range 134 447€ - 452 864€). With an EBITDA of 162 894€, 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.