SOCIETE HOTELIERE DE MONTARGIS : revenue, balance sheet and financial ratios

In 2024, SOCIETE HOTELIERE DE MONTARGIS achieves revenue of 1.5 M€. Over the period 2018-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +17.7%. Vs 2023, growth of +14% (1.3 M€ -> 1.5 M€). After deducting consumption (143 k€), gross margin stands at 1.4 M€, i.e. a rate of 91%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 455 k€, representing 30.2% of revenue. Positive scissor effect: EBITDA margin improves by +7.6 pts, sign of improved operational efficiency. This high EBITDA margin provides strong self-financing capacity and resilience to uncertainties. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 158 k€, i.e. 10.5% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 797%. 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 10%. Low autonomy: the company heavily depends on external financing (banks, suppliers). Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 9.4 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 22.4% 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 74.34. 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 12.7x. 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: 7 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 119 days. Excellent situation: suppliers finance 112 days of the operating cycle (retail model). Inventory turnover is 4 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. Overall, WCR represents 32 days of revenue, i.e. 133 k€ to permanently finance. Over 2018-2024, WCR increased by +108%, requiring additional financing.

Based on 99 transactions of similar company sales in 2024, the value of SOCIETE HOTELIERE DE MONTARGIS is estimated at 1 460 254 € (range 443 337€ - 2 717 095€). With an EBITDA of 454 622€, the sector multiple of 4.8x is applied. The price/revenue ratio is 0.54x (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.
Medium reliability: estimate to be confirmed with in-depth analysis.