EUROPEAN COPPER ALLOY HOLDING : revenue, balance sheet and financial ratios

In 2024, EUROPEAN COPPER ALLOY HOLDING achieves revenue of 909 k€. Revenue is growing positively over 8 years (CAGR: +1.2%). Significant drop of -12% vs 2023. After deducting consumption (0 €), gross margin stands at 909 k€, i.e. a rate of 100%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 51 k€, representing 5.6% of revenue. The operating margin remains fragile, requiring cost vigilance. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 657 k€, i.e. 72.2% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 3%. 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 80%. 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 0.1 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 72.1% 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 126.67. 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 23.3x. 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: 34 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 19 days. The company must finance 15 days of gap between collections and payments. Overall, WCR represents 29 days of revenue, i.e. 74 k€ to permanently finance. Over 2016-2024, WCR increased by +134%, requiring additional financing.

Based on 103 transactions of similar company sales in 2024, the value of EUROPEAN COPPER ALLOY HOLDING is estimated at 1 480 128 € (range 499 915€ - 3 782 619€). With an EBITDA of 51 144€, the sector multiple of 5.0x is applied. The price/revenue ratio is 0.38x (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.