ERM AUTOMATISMES INDUSTRIELS : revenue, balance sheet and financial ratios

In 2024, ERM AUTOMATISMES INDUSTRIELS achieves revenue of 18.7 M€. Over the period 2017-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +12.6%. Vs 2023, growth of +26% (14.8 M€ -> 18.7 M€). After deducting consumption (10.9 M€), gross margin stands at 7.8 M€, i.e. a rate of 42%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 1.5 M€, representing 8.2% of revenue. Positive scissor effect: EBITDA margin improves by +5.8 pts, sign of improved operational efficiency. This level of operating margin is satisfactory for the sector. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 1.1 M€, i.e. 5.8% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 39%. Debt remains under control: the company retains capacity to raise new debt if needed. Financial autonomy (= Equity / Total assets x 100) reaches 42%. 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 0.5 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 7.2% 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 204.51. 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 4.1x. Financial charges are adequately covered by operations.

Working capital requirement (WCR) measures the cash timing gap between customer collections and supplier/inventory payments. Average customer payment term: 75 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 44 days. The gap of 31 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 85 days (= Average inventory / Cost of goods x 360). Overall, WCR represents 137 days of revenue, i.e. 7.1 M€ to permanently finance. Over 2017-2024, WCR increased by +105%, requiring additional financing.

Based on 101 transactions of similar company sales (all years), the value of ERM AUTOMATISMES INDUSTRIELS is estimated at 3 861 595 € (range 1 337 968€ - 7 206 128€). With an EBITDA of 1 524 770€, the sector multiple of 2.5x is applied. The price/revenue ratio is 0.24x (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.