TORAY CARBON FIBERS EUROPE : revenue, balance sheet and financial ratios

In 2025, TORAY CARBON FIBERS EUROPE achieves revenue of 241.0 M€. Revenue is growing positively over 9 years (CAGR: +3.3%). Significant drop of -19% vs 2024. After deducting consumption (101.5 M€), gross margin stands at 139.4 M€, i.e. a rate of 58%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 36.4 M€, representing 15.1% of revenue. Warning negative scissor effect: despite revenue change (-19%), EBITDA varies by -29%, reducing margin by 2.1 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 12.1 M€, i.e. 5.0% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 47%. Debt remains under control: the company retains capacity to raise new debt if needed. Financial autonomy (= Equity / Total assets x 100) reaches 57%. 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 4.1 years of cash flow to repay all financial debt. This ratio remains within usual banking standards. Cash flow represents 13.4% 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 193.15. 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 8.2x. 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: 60 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 66 days. Favorable situation: supplier credit is longer than customer credit by 6 days. Inventory turnover is 137 days (= Average inventory / Cost of goods x 360). This high level ties up cash and potentially creates obsolescence risk. Overall, WCR represents 98 days of revenue, i.e. 65.9 M€ to permanently finance. Notable WCR improvement over the period (-27%), freeing up cash.

Based on 228 transactions of similar company sales (all years), the value of TORAY CARBON FIBERS EUROPE is estimated at 41 659 082 € (range 16 294 186€ - 110 474 492€). With an EBITDA of 36 359 870€, the sector multiple of 1.5x 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.