DELTISOL : revenue, balance sheet and financial ratios

In 2019, DELTISOL achieves revenue of 12.7 M€. Over the period 2016-2019, the company shows strong growth with a CAGR (compound annual growth rate) of +6.3%. Significant drop of -21% vs 2018. After deducting consumption (5.3 M€), gross margin stands at 7.4 M€, i.e. a rate of 58%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 657 k€, representing 5.2% of revenue. Warning negative scissor effect: despite revenue change (-21%), EBITDA varies by -55%, reducing margin by 3.8 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 75 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 253%. Critical situation: debt significantly exceeds equity, severely limiting borrowing capacity and exposing the company to default risk. Financial autonomy (= Equity / Total assets x 100) reaches 19%. Low autonomy: the company heavily depends on external financing (banks, suppliers). Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 11.3 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 3.5% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 125.19. 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 33.9x. 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: 11 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 74 days. Excellent situation: suppliers finance 63 days of the operating cycle (retail model). Inventory turnover is 80 days (= Average inventory / Cost of goods x 360). Overall, WCR represents 88 days of revenue, i.e. 3.1 M€ to permanently finance.

Based on 76 transactions of similar company sales (all years), the value of DELTISOL is estimated at 1 219 102 € (range 545 584€ - 2 070 370€). With an EBITDA of 657 256€, the sector multiple of 1.3x is applied. The price/revenue ratio is 0.20x (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.