SOC H L M LOZERE HABITATIONS : revenue, balance sheet and financial ratios

In 2023, SOC H L M LOZERE HABITATIONS achieves revenue of 14.8 M€. Over the period 2016-2023, the company shows strong growth with a CAGR (compound annual growth rate) of +5.7%. Vs 2021, growth of +38% (10.7 M€ -> 14.8 M€). After deducting consumption (362 k€), gross margin stands at 14.4 M€, i.e. a rate of 98%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 5.9 M€, representing 40.0% of revenue. Warning negative scissor effect: despite revenue change (+38%), EBITDA varies by +24%, reducing margin by 4.3 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 827 k€, i.e. 5.6% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 195%. 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 32%. The balance between equity and debt is satisfactory. Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 14.7 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 32.2% 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 603.52. 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 31.1x. 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: 58 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 42 days. The company must finance 16 days of gap between collections and payments. Inventory turnover is 14 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. WCR is negative (-41 days): operations structurally generate cash. Over 2016-2023, WCR increased by +23%, requiring additional financing.

Based on 215 transactions of similar company sales in 2023, the value of SOC H L M LOZERE HABITATIONS is estimated at 18 437 222 € (range 5 240 225€ - 31 475 706€). With an EBITDA of 5 912 293€, the sector multiple of 5.2x is applied. The price/revenue ratio is 0.51x (in line with sector norms). 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.