SOCIETE PUBLIQUE LOCALE 277 : revenue, balance sheet and financial ratios

In 2024, SOCIETE PUBLIQUE LOCALE 277 achieves revenue of 1.6 M€. Over the period 2016-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +43.2%. Vs 2023, growth of +18% (1.4 M€ -> 1.6 M€). After deducting consumption (7 k€), gross margin stands at 1.6 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 524 k€, representing 32.8% of revenue. Warning negative scissor effect: despite revenue change (+18%), EBITDA varies by +11%, reducing margin by 2.1 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 171 k€, i.e. 10.7% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 117%. Debt level is high: negotiating margin with banks is reduced. Financial autonomy (= Equity / Total assets x 100) reaches 43%. 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 15.3 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 23.6% 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 267.98. 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 28.0x. 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: 214 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 51 days. The gap of 163 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 1 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. Overall, WCR represents 147 days of revenue, i.e. 651 k€ to permanently finance. Over 2016-2024, WCR increased by +318%, requiring additional financing.

Based on 277 transactions of similar company sales (all years), the value of SOCIETE PUBLIQUE LOCALE 277 is estimated at 560 589 € (range 203 996€ - 1 581 775€). With an EBITDA of 524 067€, the sector multiple of 1.3x is applied. The price/revenue ratio is 0.29x (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.