ENTREP CHAUDRONNERIE MECANIQUE : revenue, balance sheet and financial ratios

In 2024, ENTREP CHAUDRONNERIE MECANIQUE achieves revenue of 1.3 M€. Over the period 2016-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +5.7%. Significant drop of -28% vs 2023. After deducting consumption (407 k€), gross margin stands at 861 k€, i.e. a rate of 68%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 142 k€, representing 11.2% of revenue. Warning negative scissor effect: despite revenue change (-28%), EBITDA varies by -41%, 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 91 k€, i.e. 7.2% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 5%. 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 75%. 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 0.3 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 9.1% 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 451.10. Concretely, the company has €2 of liquid assets for every €1 of short-term debt: no cash risk within 12 months.

Working capital requirement (WCR) measures the cash timing gap between customer collections and supplier/inventory payments. Average customer payment term: 114 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 28 days. The gap of 86 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 21 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. Overall, WCR represents 124 days of revenue, i.e. 437 k€ to permanently finance. Over 2016-2024, WCR increased by +1170%, requiring additional financing.

Based on 56 transactions of similar company sales (all years), the value of ENTREP CHAUDRONNERIE MECANIQUE is estimated at 157 413 € (range 98 414€ - 359 401€). With an EBITDA of 142 236€, 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.