KEMET ELECTRONICS : revenue, balance sheet and financial ratios

In 2024, KEMET ELECTRONICS achieves revenue of 743 k€. Revenue is growing positively over 7 years (CAGR: +4.1%). Significant drop of -13% vs 2023. After deducting consumption (0 €), gross margin stands at 743 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 43 k€, representing 5.7% of revenue. Warning negative scissor effect: despite revenue change (-13%), EBITDA varies by -57%, reducing margin by 5.9 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 26 k€, i.e. 3.5% 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 73%. This high autonomy means the company finances most of its assets through equity, a sign of strength. Cash flow represents 3.5% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 371.13. 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: 232 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 103 days. The gap of 129 days means the company finances its customers for over a month before being paid relative to supplier payments. This weighs on cash flow. Overall, WCR represents 221 days of revenue, i.e. 456 k€ to permanently finance. Over 2017-2024, WCR increased by +50%, requiring additional financing.

Based on 229 transactions of similar company sales (all years), the value of KEMET ELECTRONICS is estimated at 115 606 € (range 48 798€ - 327 095€). With an EBITDA of 42 610€, 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.