COTE SUD IMMOBILIER : revenue, balance sheet and financial ratios

In 2020, COTE SUD IMMOBILIER achieves revenue of 200 k€. Revenue is declining over the period 2016-2020 (CAGR: -18.9%). Significant drop of -74% vs 2019. After deducting consumption (0 €), gross margin stands at 200 k€, i.e. a rate of 100%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 30 k€, representing 14.9% of revenue. Warning negative scissor effect: despite revenue change (-74%), EBITDA varies by -77%, reducing margin by 2.4 pts. This reflects costs rising faster than revenue. This level of operating margin is satisfactory for the sector. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 11 k€, i.e. 5.6% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at -380%. 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 -32%. Low autonomy: the company heavily depends on external financing (banks, suppliers). Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 60.7 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 6.4% 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 1057.56. 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 22.0x. 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: 137 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 23 days. The gap of 114 days means the company finances its customers for over a month before being paid relative to supplier payments. This weighs on cash flow. Overall, WCR represents 905 days of revenue, i.e. 502 k€ to permanently finance. Over 2016-2020, WCR increased by +25%, requiring additional financing.

Based on 193 transactions of similar company sales in 2020, the value of COTE SUD IMMOBILIER is estimated at 141 106 € (range 65 467€ - 234 944€). With an EBITDA of 29 738€, the sector multiple of 6.2x is applied. The price/revenue ratio is 0.62x (in line with sector norms). 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.