SOCIETE ANONYME D'ECONOMIE MIXTE DE CONSTRUCTION DE LA VILLE DE TARBES : revenue, balance sheet and financial ratios

In 2023, SOCIETE ANONYME D'ECONOMIE MIXTE DE CONSTRUCTION DE LA VILLE DE TARBES achieves revenue of 6.2 M€. Revenue is growing positively over 7 years (CAGR: +0.3%). Vs 2021: +4%. After deducting consumption (3 k€), gross margin stands at 6.2 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 2.0 M€, representing 32.6% of revenue. Warning negative scissor effect: despite revenue change (+4%), EBITDA varies by -6%, reducing margin by 3.4 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 245 k€, i.e. 4.0% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 129%. Debt level is high: negotiating margin with banks is reduced. Financial autonomy (= Equity / Total assets x 100) reaches 42%. 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 16.2 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 20.5% 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 390.53. 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 31.7x. 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: 60 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 43 days. The company must finance 17 days of gap between collections and payments. Inventory turnover is 4 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. Overall, WCR represents 32 days of revenue, i.e. 546 k€ to permanently finance. Notable WCR improvement over the period (-58%), freeing up cash.

Based on 215 transactions of similar company sales in 2023, the value of SOCIETE ANONYME D'ECONOMIE MIXTE DE CONSTRUCTION DE LA VILLE DE TARBES is estimated at 6 409 111 € (range 1 848 132€ - 11 033 626€). With an EBITDA of 2 012 268€, the sector multiple of 5.2x is applied. The price/revenue ratio is 0.51x (in line with sector norms). 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.