SOCIETE FRANCAISE DU RADIOTELEPHONE - S.F.R : revenue, balance sheet and financial ratios

In 2024, SOCIETE FRANCAISE DU RADIOTELEPHONE - S.F.R achieves revenue of 8.9 Bn€. Activity remains stable over the period (CAGR: -0.3%). Slight decline of -2% vs 2023. After deducting consumption (1.0 Bn€), gross margin stands at 7.9 Bn€, i.e. a rate of 89%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 2.5 Bn€, representing 27.5% 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 1.0 Bn€, i.e. 11.5% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 83%. Debt level is high: negotiating margin with banks is reduced. Financial autonomy (= Equity / Total assets x 100) reaches 35%. The balance between equity and debt is satisfactory. Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 2.9 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 20.9% 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 47.14. 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 21.1x. 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: 57 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 149 days. Excellent situation: suppliers finance 92 days of the operating cycle (retail model). Inventory turnover is 9 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. WCR is negative (-33 days): operations structurally generate cash. Notable WCR improvement over the period (-143%), freeing up cash.

Based on 250 transactions of similar company sales (all years), the value of SOCIETE FRANCAISE DU RADIOTELEPHONE - S.F.R is estimated at 1 572 014 057 € (range 799 587 597€ - 4 660 586 191€). With an EBITDA of 2 456 958 366€, the sector multiple of 0.6x 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.