SOCIETE ANONYME D'HABITATIONS A LOYER MODERE ALTEAL : revenue, balance sheet and financial ratios

In 2017, SOCIETE ANONYME D'HABITATIONS A LOYER MODERE ALTEAL achieves revenue of 76.1 M€. Vs 2016: +2%. After deducting consumption (8.2 M€), gross margin stands at 67.8 M€, i.e. a rate of 89%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 34.2 M€, representing 45.0% of 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 7.5 M€, i.e. 9.8% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 550%. Critical situation: debt significantly exceeds equity, severely limiting borrowing capacity and exposing the company to default risk. Financial autonomy (= Equity / Total assets x 100) reaches 14%. Low autonomy: the company heavily depends on external financing (banks, suppliers). Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 29.0 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 31.0% 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 397.60. 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 31.3x. 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: 295 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 181 days. The gap of 114 days means the company finances its customers for over a month before being paid relative to supplier payments. This weighs on cash flow. Inventory turnover is 98 days (= Average inventory / Cost of goods x 360). This high level ties up cash and potentially creates obsolescence risk. Overall, WCR represents 137 days of revenue, i.e. 28.9 M€ to permanently finance.

Based on 227 transactions of similar company sales in 2017, the value of SOCIETE ANONYME D'HABITATIONS A LOYER MODERE ALTEAL is estimated at 98 666 049 € (range 31 843 738€ - 190 398 090€). With an EBITDA of 34 246 102€, the sector multiple of 4.4x is applied. The price/revenue ratio is 0.62x (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.