DGM INDUSTRIES : revenue, balance sheet and financial ratios

In 2024, DGM INDUSTRIES achieves revenue of 13.5 M€. Over the period 2016-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +5.9%. Vs 2023: +6%. After deducting consumption (9.5 M€), gross margin stands at 4.0 M€, i.e. a rate of 29%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 724 k€, representing 5.4% of revenue. Warning negative scissor effect: despite revenue change (+6%), EBITDA varies by -28%, reducing margin by 2.5 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 699 k€, i.e. 5.2% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 0%. 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 26%. The balance between equity and debt is satisfactory. Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 0.0 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 5.1% 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 137.44. 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 1.0x. Danger: operating income does not cover interest charges, unsustainable situation.

Working capital requirement (WCR) measures the cash timing gap between customer collections and supplier/inventory payments. Average customer payment term: 28 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 39 days. Favorable situation: supplier credit is longer than customer credit by 11 days. Inventory turnover is 69 days (= Average inventory / Cost of goods x 360). Overall, WCR represents 12 days of revenue, i.e. 465 k€ to permanently finance. Over 2016-2024, WCR increased by +209%, requiring additional financing.

Based on 104 transactions of similar company sales (all years), the value of DGM INDUSTRIES is estimated at 1 643 386 € (range 957 491€ - 4 634 109€). With an EBITDA of 724 277€, the sector multiple of 1.0x is applied. The price/revenue ratio is 0.27x (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.