FAUCHERON FLEURS FUNERAIRES LES 3 F : revenue, balance sheet and financial ratios

In 2024, FAUCHERON FLEURS FUNERAIRES LES 3 F achieves revenue of 2.0 M€. Revenue is growing positively over 9 years (CAGR: +2.3%). Slight decline of -7% vs 2023. After deducting consumption (254 k€), gross margin stands at 1.8 M€, i.e. a rate of 87%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 270 k€, representing 13.4% of revenue. Warning negative scissor effect: despite revenue change (-7%), EBITDA varies by -31%, reducing margin by 4.8 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 85 k€, i.e. 4.2% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 75%. Debt level is high: negotiating margin with banks is reduced. Financial autonomy (= Equity / Total assets x 100) reaches 39%. The balance between equity and debt is satisfactory. Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 2.1 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 7.5% 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 242.33. 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 4.4x. 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: 52 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 28 days. The company must finance 24 days of gap between collections and payments. Inventory turnover is 17 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. Overall, WCR represents 49 days of revenue, i.e. 276 k€ to permanently finance. Notable WCR improvement over the period (-31%), freeing up cash.

Based on 108 transactions of similar company sales (all years), the value of FAUCHERON FLEURS FUNERAIRES LES 3 F is estimated at 602 156 € (range 239 592€ - 1 271 052€). With an EBITDA of 270 350€, the sector multiple of 2.4x is applied. The price/revenue ratio is 0.36x (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.