CONSTRUCTIONS METALLIQUES INDUSTRIES : revenue, balance sheet and financial ratios

In 2024, CONSTRUCTIONS METALLIQUES INDUSTRIES achieves revenue of 8.7 M€. Over the period 2016-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +8.6%. Significant drop of -19% vs 2023. After deducting consumption (2.7 M€), gross margin stands at 5.9 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 361 k€, representing 4.2% of revenue. Warning negative scissor effect: despite revenue change (-19%), EBITDA varies by -80%, reducing margin by 12.5 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 178 k€, i.e. 2.1% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 71%. Debt level is high: negotiating margin with banks is reduced. Financial autonomy (= Equity / Total assets x 100) reaches 41%. 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 6.0 years of cash flow to repay all financial debt. This ratio remains within usual banking standards. Cash flow represents 2.9% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 188.05. 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 18.3x. 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: 69 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 62 days. The company must finance 7 days of gap between collections and payments. Inventory turnover is 11 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. Overall, WCR represents 103 days of revenue, i.e. 2.5 M€ to permanently finance. Over 2016-2024, WCR increased by +50%, requiring additional financing.

Based on 56 transactions of similar company sales (all years), the value of CONSTRUCTIONS METALLIQUES INDUSTRIES is estimated at 590 775 € (range 346 722€ - 1 107 670€). With an EBITDA of 360 745€, 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.