OUEST ARMATURES : revenue, balance sheet and financial ratios

In 2024, OUEST ARMATURES achieves revenue of 3.3 M€. Over the period 2016-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +15.3%. Slight decline of -3% vs 2023. After deducting consumption (1.9 M€), gross margin stands at 1.4 M€, i.e. a rate of 43%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 210 k€, representing 6.3% of revenue. Warning negative scissor effect: despite revenue change (-3%), EBITDA varies by -34%, reducing margin by 3.0 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 91 k€, i.e. 2.7% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 42%. Debt remains under control: the company retains capacity to raise new debt if needed. Financial autonomy (= Equity / Total assets x 100) reaches 38%. The balance between equity and debt is satisfactory. Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 1.6 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 5.2% 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 173.51. 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 2.7x. Financial charges are adequately covered by operations.

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: 100 days. Favorable situation: supplier credit is longer than customer credit by 23 days. Inventory turnover is 43 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. Overall, WCR represents 107 days of revenue, i.e. 991 k€ to permanently finance. Over 2016-2024, WCR increased by +188%, requiring additional financing.

Based on 56 transactions of similar company sales (all years), the value of OUEST ARMATURES is estimated at 272 011 € (range 162 895€ - 541 384€). With an EBITDA of 210 081€, the sector multiple of 1.0x 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.
Medium reliability: estimate to be confirmed with in-depth analysis.