SOCIETE TRAVAUX ET D'INGENIERIE FORAGE : revenue, balance sheet and financial ratios

In 2024, SOCIETE TRAVAUX ET D'INGENIERIE FORAGE achieves revenue of 3.4 M€. Over the period 2016-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +6.4%. Slight decline of -8% vs 2023. After deducting consumption (298 k€), gross margin stands at 3.1 M€, i.e. a rate of 91%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 262 k€, representing 7.6% of revenue. Warning negative scissor effect: despite revenue change (-8%), EBITDA varies by -36%, reducing margin by 3.4 pts. This reflects costs rising faster than revenue. The operating margin remains fragile, requiring cost vigilance. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 282 €, i.e. 0.0% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 92%. Debt level is high: negotiating margin with banks is reduced. Financial autonomy (= Equity / Total assets x 100) reaches 38%. The balance between equity and debt is satisfactory. Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 2.7 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 6.5% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment. Satisfactory level allowing partial financing of growth.

The liquidity ratio (= Current assets / Current liabilities) stands at 252.24. 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 10.1x. 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: 78 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 54 days. The company must finance 24 days of gap between collections and payments. Inventory turnover is 9 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. Overall, WCR represents 95 days of revenue, i.e. 904 k€ to permanently finance.

Based on 136 transactions of similar company sales (all years), the value of SOCIETE TRAVAUX ET D'INGENIERIE FORAGE is estimated at 436 261 € (range 171 197€ - 942 377€). With an EBITDA of 262 387€, the sector multiple of 1.7x 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.