NOVOFERM FRANCE : revenue, balance sheet and financial ratios

In 2024, NOVOFERM FRANCE achieves revenue of 74.2 M€. Activity remains stable over the period (CAGR: -0.1%). Significant drop of -16% vs 2023. After deducting consumption (35.5 M€), gross margin stands at 38.7 M€, i.e. a rate of 52%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 2.1 M€, representing 2.9% of revenue. Warning negative scissor effect: despite revenue change (-16%), EBITDA varies by -60%, reducing margin by 3.1 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 120 k€, i.e. 0.2% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 179%. 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 30%. The balance between equity and debt is satisfactory. Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 35.5 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 1.8% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 258.84. 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 51.5x. 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: 54 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 50 days. The company must finance 4 days of gap between collections and payments. Inventory turnover is 63 days (= Average inventory / Cost of goods x 360). Overall, WCR represents 128 days of revenue, i.e. 26.4 M€ to permanently finance.

Based on 75 transactions of similar company sales (all years), the value of NOVOFERM FRANCE is estimated at 4 865 241 € (range 2 335 739€ - 7 972 286€). With an EBITDA of 2 135 051€, the sector multiple of 1.2x is applied. The price/revenue ratio is 0.16x (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.
Medium reliability: estimate to be confirmed with in-depth analysis.