M3C : revenue, balance sheet and financial ratios

In 2024, M3C achieves revenue of 1.3 M€. Over the period 2014-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +6.4%. Slight decline of -1% vs 2023. After deducting consumption (566 k€), gross margin stands at 736 k€, i.e. a rate of 57%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 147 k€, representing 11.3% of revenue. This level of operating margin is satisfactory for the sector. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 83 k€, i.e. 6.4% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 139%. Debt level is high: negotiating margin with banks is reduced. Financial autonomy (= Equity / Total assets x 100) reaches 28%. The balance between equity and debt is satisfactory. Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 4.0 years of cash flow to repay all financial debt. This ratio remains within usual banking standards. Cash flow represents 7.2% 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 255.94. 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 6.7x. 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: 4 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 54 days. Excellent situation: suppliers finance 50 days of the operating cycle (retail model). Inventory turnover is 98 days (= Average inventory / Cost of goods x 360). This high level ties up cash and potentially creates obsolescence risk. Overall, WCR represents 66 days of revenue, i.e. 239 k€ to permanently finance. Over 2014-2024, WCR increased by +57%, requiring additional financing.

Based on 145 transactions of similar company sales (all years), the value of M3C is estimated at 321 299 € (range 122 769€ - 827 110€). With an EBITDA of 146 831€, 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.