OTEC RESEAUX ET INDUSTRIES : revenue, balance sheet and financial ratios

In 2024, OTEC RESEAUX ET INDUSTRIES achieves revenue of 1.3 M€. Over the period 2016-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +23.5%. Significant drop of -57% vs 2023. After deducting consumption (671 k€), gross margin stands at 615 k€, i.e. a rate of 48%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 188 k€, representing 14.6% of revenue. Warning negative scissor effect: despite revenue change (-57%), EBITDA varies by -70%, reducing margin by 6.4 pts. This reflects costs rising faster than revenue. This level of operating margin is satisfactory for the sector. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 124 k€, i.e. 9.6% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 2%. 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 78%. 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 0.3 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 16.5% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment. This high level provides strong self-financing capacity.

The liquidity ratio (= Current assets / Current liabilities) stands at 1030.01. 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 0.2x. Danger: operating income does not cover interest charges, unsustainable situation.

Working capital requirement (WCR) measures the cash timing gap between customer collections and supplier/inventory payments. Average customer payment term: 31 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 17 days. The company must finance 14 days of gap between collections and payments. Inventory turnover is 83 days (= Average inventory / Cost of goods x 360). Overall, WCR represents 111 days of revenue, i.e. 398 k€ to permanently finance. Over 2016-2024, WCR increased by +310%, requiring additional financing.

Based on 50 transactions of similar company sales (all years), the value of OTEC RESEAUX ET INDUSTRIES is estimated at 333 719 € (range 178 084€ - 951 775€). With an EBITDA of 188 034€, the sector multiple of 1.8x 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.
Medium reliability: estimate to be confirmed with in-depth analysis.