SOCIETE D'ECONOMIE MIXTE DE CONSTRUCTION ET DE RENOVATION DES 4 VALLEES EN ABREGE SEM 4V : revenue, balance sheet and financial ratios

In 2021, SOCIETE D'ECONOMIE MIXTE DE CONSTRUCTION ET DE RENOVATION DES 4 VALLEES EN ABREGE SEM 4V achieves revenue of 21.2 M€. Over the period 2016-2021, the company shows strong growth with a CAGR (compound annual growth rate) of +81.6%. Slight decline of -5% vs 2020. After deducting consumption (6 k€), gross margin stands at 21.2 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 7.0 M€, representing 33.0% 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 2.8 M€, i.e. 13.3% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 124%. 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 13.0 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 29.2% 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 659.75. 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 15.3x. 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: 41 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 77 days. Excellent situation: suppliers finance 36 days of the operating cycle (retail model). Inventory turnover is 28 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. Overall, WCR represents 45 days of revenue, i.e. 2.6 M€ to permanently finance. Over 2016-2021, WCR increased by +447%, requiring additional financing.

Based on 178 transactions of similar company sales in 2021, the value of SOCIETE D'ECONOMIE MIXTE DE CONSTRUCTION ET DE RENOVATION DES 4 VALLEES EN ABREGE SEM 4V is estimated at 24 718 787 € (range 11 150 664€ - 47 311 306€). With an EBITDA of 7 009 179€, the sector multiple of 4.7x is applied. The price/revenue ratio is 0.70x (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.