SOC DE DISTRIBUTION DES HEROS NOGENTAIS : revenue, balance sheet and financial ratios

In 2022, SOC DE DISTRIBUTION DES HEROS NOGENTAIS achieves revenue of 8.4 M€. Revenue is growing positively over 8 years (CAGR: +2.5%). Slight decline of -1% vs 2021. After deducting consumption (5.7 M€), gross margin stands at 2.7 M€, i.e. a rate of 32%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 645 k€, representing 7.7% of revenue. Positive scissor effect: EBITDA margin improves by +2.9 pts, sign of improved operational efficiency. The operating margin remains fragile, requiring cost vigilance. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 426 k€, i.e. 5.1% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 27%. 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 45%. 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 0.5 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 7.3% 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 131.20. 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 0.3x. 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: 2 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 38 days. Excellent situation: suppliers finance 36 days of the operating cycle (retail model). Inventory turnover is 19 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. Overall, WCR represents 39 days of revenue, i.e. 916 k€ to permanently finance. Over 2015-2022, WCR increased by +545%, requiring additional financing.

Based on 265 transactions of similar company sales in 2022, the value of SOC DE DISTRIBUTION DES HEROS NOGENTAIS is estimated at 3 184 730 € (range 1 676 134€ - 5 796 686€). With an EBITDA of 644 868€, the sector multiple of 5.8x is applied. The price/revenue ratio is 0.25x (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.