SOCIETE KAOLINIERE ARMORICAINE : revenue, balance sheet and financial ratios

In 2024, SOCIETE KAOLINIERE ARMORICAINE achieves revenue of 20.3 M€. Over the period 2016-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +8.6%. Vs 2023: +8%. After deducting consumption (7.6 M€), gross margin stands at 12.7 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 1.8 M€, representing 9.0% of revenue. Warning negative scissor effect: despite revenue change (+8%), EBITDA varies by -21%, reducing margin by 3.4 pts. This reflects costs rising faster than revenue. This level of operating margin is satisfactory for the sector. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 85 k€, i.e. 0.4% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 144%. Debt level is high: negotiating margin with banks is reduced. Financial autonomy (= Equity / Total assets x 100) reaches 33%. The balance between equity and debt is satisfactory. Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 9.6 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 8.4% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment. Satisfactory level allowing partial financing of growth.

The liquidity ratio (= Current assets / Current liabilities) stands at 246.38. 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 28.2x. 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: 43 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 73 days. Favorable situation: supplier credit is longer than customer credit by 30 days. Inventory turnover is 99 days (= Average inventory / Cost of goods x 360). This high level ties up cash and potentially creates obsolescence risk. Overall, WCR represents 171 days of revenue, i.e. 9.7 M€ to permanently finance. Over 2016-2024, WCR increased by +264%, requiring additional financing.

Based on 95 transactions of similar company sales (all years), the value of SOCIETE KAOLINIERE ARMORICAINE is estimated at 2 371 244 € (range 906 152€ - 11 353 792€). With an EBITDA of 1 825 184€, the sector multiple of 1.4x is applied. The price/revenue ratio is 0.17x (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.