SOCIETE D'EQUIPEMENT DES PYRENEES ATLANTIQUES : revenue, balance sheet and financial ratios

In 2024, SOCIETE D'EQUIPEMENT DES PYRENEES ATLANTIQUES achieves revenue of 10.0 M€. Revenue is declining over the period 2016-2024 (CAGR: -5.5%). Vs 2023, growth of +471% (1.8 M€ -> 10.0 M€). After deducting consumption (150 k€), gross margin stands at 9.9 M€, i.e. a rate of 99%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 101 k€, representing 1.0% of revenue. Positive scissor effect: EBITDA margin improves by +56.9 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 111 k€, i.e. 1.1% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 136%. Debt level is high: negotiating margin with banks is reduced. Financial autonomy (= Equity / Total assets x 100) reaches 22%. The balance between equity and debt is satisfactory. Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 40.7 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 2.7% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 280.50. 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 280.8x. 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: 168 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 90 days. The gap of 78 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 168 days (= Average inventory / Cost of goods x 360). This high level ties up cash and potentially creates obsolescence risk. Overall, WCR represents 198 days of revenue, i.e. 5.5 M€ to permanently finance. Notable WCR improvement over the period (-66%), freeing up cash.

Based on 80 transactions of similar company sales (all years), the value of SOCIETE D'EQUIPEMENT DES PYRENEES ATLANTIQUES is estimated at 943 507 € (range 339 433€ - 2 365 240€). With an EBITDA of 101 158€, the sector multiple of 1.0x is applied. The price/revenue ratio is 0.28x (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.