SOCIETE DE TRAVAUX D ISOLATION ET DE MENUISERIE : revenue, balance sheet and financial ratios

In 2024, SOCIETE DE TRAVAUX D ISOLATION ET DE MENUISERIE achieves revenue of 30.4 M€. Revenue is growing positively over 10 years (CAGR: +3.7%). Slight decline of -5% vs 2023. After deducting consumption (11.3 M€), gross margin stands at 19.1 M€, i.e. a rate of 63%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 1.2 M€, representing 4.0% of revenue. The operating margin remains fragile, requiring cost vigilance. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 567 k€, i.e. 1.9% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 89%. Debt level is high: negotiating margin with banks is reduced. Financial autonomy (= Equity / Total assets x 100) reaches 31%. The balance between equity and debt is satisfactory. Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 7.4 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 2.3% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 173.91. 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 21.4x. 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: 160 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 86 days. The gap of 74 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 25 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. Overall, WCR represents 180 days of revenue, i.e. 15.2 M€ to permanently finance. Over 2015-2024, WCR increased by +86%, requiring additional financing.

Based on 58 transactions of similar company sales (all years), the value of SOCIETE DE TRAVAUX D ISOLATION ET DE MENUISERIE is estimated at 3 025 233 € (range 2 014 015€ - 5 697 734€). With an EBITDA of 1 223 071€, the sector multiple of 1.2x is applied. The price/revenue ratio is 0.20x (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.