SNC PHEM(POLE HENRI EY MORANCEZ) : revenue, balance sheet and financial ratios

In 2022, SNC PHEM(POLE HENRI EY MORANCEZ) achieves revenue of 805 k€. Revenue is growing positively over 7 years (CAGR: +0.3%). Vs 2021: +3%. After deducting consumption (79 k€), gross margin stands at 726 k€, i.e. a rate of 90%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 485 k€, representing 60.2% of revenue. Warning negative scissor effect: despite revenue change (+3%), EBITDA varies by -2%, reducing margin by 3.0 pts. This reflects costs rising faster than revenue. This high EBITDA margin provides strong self-financing capacity and resilience to uncertainties. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 21 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 14580%. 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 1%. Low autonomy: the company heavily depends on external financing (banks, suppliers). Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 14.2 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 37.0% 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 489.06. 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 38.6x. 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: 427 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 48 days. The gap of 379 days means the company finances its customers for over a month before being paid relative to supplier payments. This weighs on cash flow. Overall, WCR represents 518 days of revenue, i.e. 1.2 M€ to permanently finance. Over 2016-2022, WCR increased by +47%, requiring additional financing.

Based on 113 transactions of similar company sales (all years), the value of SNC PHEM(POLE HENRI EY MORANCEZ) is estimated at 921 558 € (range 355 363€ - 1 361 471€). With an EBITDA of 484 830€, the sector multiple of 3.6x is applied. The price/revenue ratio is 0.11x (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.