PIERRE PROMOTION : revenue, balance sheet and financial ratios

In 2024, PIERRE PROMOTION achieves revenue of 5.9 M€. Revenue is declining over the period 2016-2024 (CAGR: -7.2%). Significant drop of -82% vs 2023. After deducting consumption (4.9 M€), gross margin stands at 1.0 M€, i.e. a rate of 17%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 150 k€, representing 2.5% of revenue. Warning negative scissor effect: despite revenue change (-82%), EBITDA varies by -96%, reducing margin by 9.6 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 1.0 M€, i.e. 17.4% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 70%. Debt remains under control: the company retains capacity to raise new debt if needed. Financial autonomy (= Equity / Total assets x 100) reaches 42%. 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 60.8 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 4.5% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 252.47. 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 2034.1x. 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: 239 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 54 days. The gap of 185 days means the company finances its customers for over a month before being paid relative to supplier payments. This weighs on cash flow. Inventory turnover is 849 days (= Average inventory / Cost of goods x 360). This high level ties up cash and potentially creates obsolescence risk. Overall, WCR represents 318 days of revenue, i.e. 5.2 M€ to permanently finance. Notable WCR improvement over the period (-55%), freeing up cash.

Based on 80 transactions of similar company sales (all years), the value of PIERRE PROMOTION is estimated at 1 057 216 € (range 360 458€ - 2 785 637€). With an EBITDA of 150 441€, the sector multiple of 1.0x is applied. The price/revenue ratio is 0.28x (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.