GMS DIFFUSION : revenue, balance sheet and financial ratios

In 2024, GMS DIFFUSION achieves revenue of 9.1 M€. Revenue is growing positively over 9 years (CAGR: +4.4%). Significant drop of -14% vs 2023. After deducting consumption (4.4 M€), gross margin stands at 4.7 M€, i.e. a rate of 51%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 236 k€, representing 2.6% of revenue. Warning negative scissor effect: despite revenue change (-14%), EBITDA varies by -76%, reducing margin by 6.5 pts. This reflects costs rising faster than revenue. The operating margin remains fragile, requiring cost vigilance. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 199 k€, i.e. 2.2% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 54%. Debt remains under control: the company retains capacity to raise new debt if needed. Financial autonomy (= Equity / Total assets x 100) reaches 43%. 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 12.2 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 1.2% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 289.38. 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 35.3x. 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: 47 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 69 days. Favorable situation: supplier credit is longer than customer credit by 22 days. Inventory turnover is 99 days (= Average inventory / Cost of goods x 360). This high level ties up cash and potentially creates obsolescence risk. Overall, WCR represents 169 days of revenue, i.e. 4.3 M€ to permanently finance. Over 2016-2024, WCR increased by +74%, requiring additional financing.

Based on 145 transactions of similar company sales (all years), the value of GMS DIFFUSION is estimated at 961 646 € (range 432 095€ - 2 431 307€). With an EBITDA of 236 175€, the sector multiple of 2.6x is applied. The price/revenue ratio is 0.19x (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.