SOCIETE DE FORAGES ET DE RECHERCHES D'EAUX DU MIDI : revenue, balance sheet and financial ratios

In 2022, SOCIETE DE FORAGES ET DE RECHERCHES D'EAUX DU MIDI achieves revenue of 184 k€. Revenue is declining over the period 2015-2022 (CAGR: -10.9%). Vs 2021, growth of +36% (136 k€ -> 184 k€). After deducting consumption (37 k€), gross margin stands at 147 k€, i.e. a rate of 80%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 20 k€, representing 11.1% of revenue. Warning negative scissor effect: despite revenue change (+36%), EBITDA varies by +3%, reducing margin by 3.5 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 6 k€, i.e. 3.2% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at -74%. 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 -34%. Low autonomy: the company heavily depends on external financing (banks, suppliers). Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 0.3 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 10.2% 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 57.94. 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 0.0x. 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: 0 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 20 days. Favorable situation: supplier credit is longer than customer credit by 20 days. Inventory turnover is 29 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. WCR is negative (-55 days): operations structurally generate cash. Notable WCR improvement over the period (-131%), freeing up cash.

Based on 136 transactions of similar company sales (all years), the value of SOCIETE DE FORAGES ET DE RECHERCHES D'EAUX DU MIDI is estimated at 32 521 € (range 11 214€ - 72 153€). With an EBITDA of 20 495€, the sector multiple of 1.7x is applied. The price/revenue ratio is 0.21x (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.