SOCIETE IMMOBILIERE DE L'OUEST : revenue, balance sheet and financial ratios

In 2022, SOCIETE IMMOBILIERE DE L'OUEST achieves revenue of 865 k€. Revenue is growing positively over 7 years (CAGR: +3.6%). Vs 2021: +6%. After deducting consumption (103 k€), gross margin stands at 761 k€, i.e. a rate of 88%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 248 k€, representing 28.7% of revenue. Warning negative scissor effect: despite revenue change (+6%), EBITDA varies by -2%, reducing margin by 2.2 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 58 k€, i.e. 6.7% 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 54%. This high autonomy means the company finances most of its assets through equity, a sign of strength. Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 6.7 years of cash flow to repay all financial debt. This ratio remains within usual banking standards. Cash flow represents 18.7% 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 607.13. 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 22.0x. 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: 223 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 56 days. The gap of 167 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 363 days (= Average inventory / Cost of goods x 360). This high level ties up cash and potentially creates obsolescence risk. Overall, WCR represents 529 days of revenue, i.e. 1.3 M€ to permanently finance.

Based on 161 transactions of similar company sales (all years), the value of SOCIETE IMMOBILIERE DE L'OUEST is estimated at 805 446 € (range 429 788€ - 1 241 991€). With an EBITDA of 248 498€, the sector multiple of 4.7x is applied. The price/revenue ratio is 0.62x (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.