ESPACE PROMOTION IMMOBILIERE : revenue, balance sheet and financial ratios

In 2021, ESPACE PROMOTION IMMOBILIERE achieves revenue of 870 k€. Over the period 2016-2021, the company shows strong growth with a CAGR (compound annual growth rate) of +37.1%. Vs 2020, growth of +681% (111 k€ -> 870 k€). After deducting consumption (721 k€), gross margin stands at 150 k€, i.e. a rate of 17%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 130 k€, representing 14.9% of revenue. Warning negative scissor effect: despite revenue change (+681%), EBITDA varies by +498%, reducing margin by 4.6 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 100 k€, i.e. 11.5% 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 63%. 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 0.0 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 11.5% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment. This high level provides strong self-financing capacity.

The liquidity ratio (= Current assets / Current liabilities) stands at 278.50. 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: 5 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 3087 days. Excellent situation: suppliers finance 3082 days of the operating cycle (retail model). Inventory turnover is 114 days (= Average inventory / Cost of goods x 360). This high level ties up cash and potentially creates obsolescence risk. Overall, WCR represents 70 days of revenue, i.e. 169 k€ to permanently finance. Notable WCR improvement over the period (-75%), freeing up cash.

Based on 80 transactions of similar company sales (all years), the value of ESPACE PROMOTION IMMOBILIERE is estimated at 184 974 € (range 67 692€ - 506 482€). With an EBITDA of 129 684€, the sector multiple of 1.0x is applied. The price/revenue ratio is 0.28x (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.