NEOS SOFTWARE DEVELOPMENT INTEGRATION : revenue, balance sheet and financial ratios

In 2024, NEOS SOFTWARE DEVELOPMENT INTEGRATION achieves revenue of 19.3 M€. Revenue is growing positively over 7 years (CAGR: +3.4%). Vs 2021: +8%. After deducting consumption (2.1 M€), gross margin stands at 17.1 M€, i.e. a rate of 89%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 216 k€, representing 1.1% of revenue. Warning negative scissor effect: despite revenue change (+8%), EBITDA varies by -80%, reducing margin by 5.1 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 256 k€, i.e. 1.3% 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 44%. 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 0.0 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 0.6% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 216.96. 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 1.5x. Coverage is limited: any activity downturn would jeopardize interest payments.

Working capital requirement (WCR) measures the cash timing gap between customer collections and supplier/inventory payments. Average customer payment term: 77 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 72 days. The company must finance 5 days of gap between collections and payments. Overall, WCR represents 79 days of revenue, i.e. 4.2 M€ to permanently finance. Over 2016-2024, WCR increased by +218%, requiring additional financing.

Based on 120 transactions of similar company sales (all years), the value of NEOS SOFTWARE DEVELOPMENT INTEGRATION is estimated at 1 920 914 € (range 1 039 781€ - 4 806 204€). With an EBITDA of 216 293€, the sector multiple of 2.2x is applied. The price/revenue ratio is 0.27x (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.