SUD OUEST FABRICATION ETUDES DIFFUSION : revenue, balance sheet and financial ratios

In 2024, SUD OUEST FABRICATION ETUDES DIFFUSION achieves revenue of 3.0 M€. Revenue is growing positively over 8 years (CAGR: +1.3%). Slight decline of -10% vs 2023. After deducting consumption (1.1 M€), gross margin stands at 1.9 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 440 k€, representing 14.8% of revenue. Warning negative scissor effect: despite revenue change (-10%), EBITDA varies by -22%, reducing margin by 2.3 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 301 k€, i.e. 10.1% 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 35%. The balance between equity and debt is satisfactory. Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 1.1 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 12.4% 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 192.27. 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 2.9x. Financial charges are adequately covered by operations.

Working capital requirement (WCR) measures the cash timing gap between customer collections and supplier/inventory payments. Average customer payment term: 25 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 36 days. Favorable situation: supplier credit is longer than customer credit by 11 days. Inventory turnover is 40 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. Overall, WCR represents 24 days of revenue, i.e. 199 k€ to permanently finance. Notable WCR improvement over the period (-33%), freeing up cash.

Based on 76 transactions of similar company sales (all years), the value of SUD OUEST FABRICATION ETUDES DIFFUSION is estimated at 563 876 € (range 230 081€ - 1 270 407€). With an EBITDA of 439 766€, the sector multiple of 1.3x is applied. The price/revenue ratio is 0.20x (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.