SOFRASTOCK INTERNATIONAL : revenue, balance sheet and financial ratios

In 2024, SOFRASTOCK INTERNATIONAL achieves revenue of 44.2 M€. Revenue is growing positively over 9 years (CAGR: +1.8%). Vs 2023: +7%. After deducting consumption (4 k€), gross margin stands at 44.2 M€, i.e. a rate of 100%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 4.3 M€, representing 9.8% of revenue. Positive scissor effect: EBITDA margin improves by +2.7 pts, sign of improved operational efficiency. This level of operating margin is satisfactory for the sector. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 949 k€, i.e. 2.1% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 10%. This very low level reflects a solid financial structure, offering significant room for future investments or acquisitions. Financial autonomy (= Equity / Total assets x 100) reaches 29%. The balance between equity and debt is satisfactory. Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 0.2 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 6.6% 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 130.49. 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 0.6x. Danger: operating income does not cover interest charges, unsustainable situation.

Working capital requirement (WCR) measures the cash timing gap between customer collections and supplier/inventory payments. Average customer payment term: 39 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 82 days. Excellent situation: suppliers finance 43 days of the operating cycle (retail model). Overall, WCR represents 59 days of revenue, i.e. 7.2 M€ to permanently finance. Over 2016-2024, WCR increased by +128%, requiring additional financing.

Based on 158 transactions of similar company sales (all years), the value of SOFRASTOCK INTERNATIONAL is estimated at 12 572 232 € (range 4 973 686€ - 27 503 333€). With an EBITDA of 4 335 657€, the sector multiple of 3.3x is applied. The price/revenue ratio is 0.36x (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.