GENECOS : revenue, balance sheet and financial ratios

In 2024, GENECOS achieves revenue of 9.8 M€. Over the period 2016-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +6.7%. Vs 2023: +1%. After deducting consumption (8.9 M€), gross margin stands at 854 k€, i.e. a rate of 9%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 281 k€, representing 2.9% of revenue. The operating margin remains fragile, requiring cost vigilance. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 2.1 M€, i.e. 21.5% 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 83%. This high autonomy means the company finances most of its assets through equity, a sign of strength. Cash flow represents 21.4% 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 187.07. 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 33.8x. 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: 55 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 16 days. The gap of 39 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 50 days (= Average inventory / Cost of goods x 360). Overall, WCR represents 68 days of revenue, i.e. 1.9 M€ to permanently finance. Notable WCR improvement over the period (-24%), freeing up cash.

Based on 229 transactions of similar company sales (all years), the value of GENECOS is estimated at 1 892 136 € (range 815 841€ - 5 973 837€). With an EBITDA of 281 216€, the sector multiple of 1.6x is applied. The price/revenue ratio is 0.32x (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.