VALENCE VEHICULE INDUSTRIEL : revenue, balance sheet and financial ratios

In 2024, VALENCE VEHICULE INDUSTRIEL achieves revenue of 18.7 M€. Over the period 2015-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +6.3%. Significant drop of -26% vs 2023. After deducting consumption (14.8 M€), gross margin stands at 3.9 M€, i.e. a rate of 21%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 345 k€, representing 1.8% of revenue. Positive scissor effect: EBITDA margin improves by +2.6 pts, sign of improved operational efficiency. The operating margin remains fragile, requiring cost vigilance. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 187 k€, i.e. 1.0% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 40%. Debt remains under control: the company retains capacity to raise new debt if needed. Financial autonomy (= Equity / Total assets x 100) reaches 45%. 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 0.9 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 2.3% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 169.06. 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 14.7x. 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: 35 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 71 days. Excellent situation: suppliers finance 36 days of the operating cycle (retail model). Inventory turnover is 126 days (= Average inventory / Cost of goods x 360). This high level ties up cash and potentially creates obsolescence risk. Overall, WCR represents 159 days of revenue, i.e. 8.3 M€ to permanently finance. Over 2015-2024, WCR increased by +60%, requiring additional financing.

Based on 148 transactions of similar company sales in 2024, the value of VALENCE VEHICULE INDUSTRIEL is estimated at 1 278 385 € (range 568 379€ - 2 316 766€). With an EBITDA of 345 264€, the sector multiple of 1.6x is applied. The price/revenue ratio is 0.16x (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.