SOCIETE NOUVELLE SILOS EQUIPEMENT : revenue, balance sheet and financial ratios

In 2024, SOCIETE NOUVELLE SILOS EQUIPEMENT achieves revenue of 4.2 M€. Revenue is growing positively over 9 years (CAGR: +0.5%). Significant drop of -25% vs 2023. After deducting consumption (1.1 M€), gross margin stands at 3.1 M€, i.e. a rate of 74%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 428 k€, representing 10.1% of revenue. This level of operating margin is satisfactory for the sector. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 221 k€, i.e. 5.2% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 77%. Debt level is high: negotiating margin with banks is reduced. Financial autonomy (= Equity / Total assets x 100) reaches 32%. The balance between equity and debt is satisfactory. Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 2.4 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 8.2% 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 269.26. 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 7.1x. 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: 162 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 66 days. The gap of 96 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 36 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. Overall, WCR represents 164 days of revenue, i.e. 1.9 M€ to permanently finance. Over 2016-2024, WCR increased by +107%, requiring additional financing.

Based on 56 transactions of similar company sales (all years), the value of SOCIETE NOUVELLE SILOS EQUIPEMENT is estimated at 470 106 € (range 290 350€ - 1 030 100€). With an EBITDA of 428 297€, the sector multiple of 1.0x is applied. The price/revenue ratio is 0.13x (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.