KNAUF INSULATION LANNEMEZAN : revenue, balance sheet and financial ratios

In 2024, KNAUF INSULATION LANNEMEZAN achieves revenue of 183.9 M€. Over the period 2016-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +10.9%. Vs 2023: +4%. After deducting consumption (97.1 M€), gross margin stands at 86.8 M€, i.e. a rate of 47%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 12.8 M€, representing 7.0% of revenue. Positive scissor effect: EBITDA margin improves by +9.3 pts, sign of improved operational efficiency. The operating margin remains fragile, requiring cost vigilance. Net income is negative at -10.9 M€ (-5.9% of revenue), which will impact equity.

The debt ratio (= Financial debt / Equity x 100) stands at 665%. Critical situation: debt significantly exceeds equity, severely limiting borrowing capacity and exposing the company to default risk. Financial autonomy (= Equity / Total assets x 100) reaches 9%. Low autonomy: the company heavily depends on external financing (banks, suppliers). Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 19.6 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 3.2% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 128.53. 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 56.9x. 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: 24 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 71 days. Excellent situation: suppliers finance 47 days of the operating cycle (retail model). Inventory turnover is 120 days (= Average inventory / Cost of goods x 360). This high level ties up cash and potentially creates obsolescence risk. Overall, WCR represents 84 days of revenue, i.e. 43.0 M€ to permanently finance. Over 2016-2024, WCR increased by +284%, requiring additional financing.

Based on 228 transactions of similar company sales (all years), the value of KNAUF INSULATION LANNEMEZAN is estimated at 21 179 307 € (range 9 944 251€ - 58 232 856€). With an EBITDA of 12 815 855€, the sector multiple of 1.5x is applied. The price/revenue ratio is 0.13x (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.