SOC EXPL DES ETS JOSEPH DE BRESC : revenue, balance sheet and financial ratios

In 2018, SOC EXPL DES ETS JOSEPH DE BRESC achieves revenue of 1.1 M€. Revenue is declining over the period 2016-2018 (CAGR: -31.4%). Significant drop of -61% vs 2017. After deducting consumption (204 k€), gross margin stands at 939 k€, i.e. a rate of 82%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 16 k€, representing 1.4% of revenue. Warning negative scissor effect: despite revenue change (-61%), EBITDA varies by -90%, reducing margin by 3.9 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 100 k€, i.e. 8.8% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 67%. Debt remains under control: the company retains capacity to raise new debt if needed. Financial autonomy (= Equity / Total assets x 100) reaches 50%. This high autonomy means the company finances most of its assets through equity, a sign of strength.

The liquidity ratio (= Current assets / Current liabilities) stands at 389.16. 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 105.2x. 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: 69 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 34 days. The gap of 35 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 183 days (= Average inventory / Cost of goods x 360). This high level ties up cash and potentially creates obsolescence risk. Overall, WCR represents 242 days of revenue, i.e. 767 k€ to permanently finance. Notable WCR improvement over the period (-26%), freeing up cash.

Based on 120 transactions of similar company sales (all years), the value of SOC EXPL DES ETS JOSEPH DE BRESC is estimated at 158 941 € (range 63 804€ - 394 432€). With an EBITDA of 16 414€, the sector multiple of 1.4x is applied. The price/revenue ratio is 0.22x (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.