Investment analysis of Econocom as a benchmark in digital transformation

, , ,
Integral service around a transaction
BY : Diego GutiérrezJune Fri, 2018

From a corporate finance perspective, we analyse the investments made by Econocom, a Belgian multinational company that is a benchmark in digital transformation. In this case, we will analyse its market operations and comment on its financial data as it is a listed company.

Get in touch with our experts.

Econocom, "one Galaxy" unique business model

The Econocom group is today a recognised European player in the digital transformation of companies. Its dynamics are based on a unique positioning, combining technological know-how and innovative financing. The group has thus been able to take advantage of both the breadth of the digital industrial revolution and the underlying trend, in which use takes precedence over ownership.

Its original "One Galaxy" development model - built on the Econocom "Planet" and its "Satellites" - has enabled the group to attract talented digital entrepreneurs in strategic areas such as security, mobility, web, multimedia, cloud and professional digital solutions. These mid-sized "Satellites" complement the group's historical offerings to great effect and play a role as growth accelerators.

Its activities revolve around understanding business challenges, reconciling different points of view, imagining and building digital and innovative solutions, agile and focused on the needs of our clients, which is what we do in each of our lines of activity.


Econocom multiplies its business by 4 in 10 years

In 10 years, the group has increased its turnover by a factor of 4 and its current operating profit by a factor of 6, while preserving the long-term interests of its shareholders. Econocom is also in sound financial health, reinforced this year by the early conversion of the "ORNANE" bond. The group thus has a renewed borrowing capacity to carry out a new phase of its development.

On this basis and building on the success of its previous plans, the group is presenting a new ambitious strategic plan, "e for excellence".


Econocom corporate finance analysis

Variable 2015 2016 2017
Invoicing 2.316 2.536 2.980
Ebitda 58,8 32,7 90,7
Net financial debt 186 185 279
Investment 6.300 4.300 6.300
Growth 11% 9,5% 18%
Profitability 2,54% 1,29% 3%
Solvency 3,16% 5,66% 3,08%


Source: Sabi and Yahoo Finance (millions).

  • Investment = Var. Fixed Assets + Amort. Fixed Assets
  • Growth = Var. Turnover
  • Profitability = EBITDA / Turnover
  • Solvency = Net Financial Debt / EBITDA


Valuation multiples

Valuation multiples 2017  
Company value 1,52B
EV/Ebitda 8,85
EV/Sales 0,51


Source: Sabi and Yahoo Finance.

Enterprise Value (EV) = Capitalisation + Net Financial Debt


Latest corporate operations

Company Description Country Date
Jade Solutions Jade Solutions offers enterprise mobility solutions that streamline business processes and optimise workforce productivity. UK 13/09/2017
Cineolia Cineolia specialises in outsourced utilities. France 30/03/2016
Caverin Solutions S.L. Caverin Solutions S.L. manufactures and distributes visual equipment. Spain 27/12/2015
Econocom Cyber Security Econocom Cyber Security provides IT security consulting solutions. France 22/09/2015
Alter Way Alter Way is an open source services company specialising in computer engineering. France 17/06/2015

Other posts that may interest you

IBM vs Oracle: Who is more innovative?

BBVA vs SANTANDER, in technology investments

Financially undressing... Indra

Yes you want to look for investors, buying a company or sell your company, contact our experts in Corporate Finance.

The M&A Professionals

Meet our services



Do you want to be up to date?


Our diferentiation

Market Research Technology
Our team of market analysis specialists is continuously analyzing the investments of the most active markets in the industry in order to unceasingly contribute ideas of the current market situation and identify the most relevant trends for senior management. We integrate the most relevant sources of information which allows us to discover the most interesting companies for venture capital and similarly helps us to identify the investors with the highest probability of involvement in an M&A process to ensure the success of our sell-side operations.

The reports and deductions of our advisors provide a broad view of the sector, both geographically and from the complementary or adjacent markets perspective.
Technology Data Analytics
for M&A
Advanced data anlytics is a weapon". Intelfin is an artificial intelligence tool we use for investing and creating value in SMEs through competitive analytics and the enterprise environment.

IntelFin consists of a cognitive system, which, through the application of advanced analytical technologies, facilitates the automation of investment and financing decisions in the field of non-listed companies and especially SMEs in high-growth sectors.

The information related to these companies is characterized by their lack of transparency and heterogeneity; thus, it is necessary to develop an advanced analysis which is as much predictive as prescriptive and is developed in a natural language custom, suitable to obtain greater clarity and knowledge of the investment scope.

The IntelFin system focuses especially on analyzing the variables that define and influence the competitive environment of a sector and the positioning of a company, analyzing their influence on future value creation. Therefore, IntelFin supports strategic decision-making to senior management by resolving questions such as:

¿What are my competitors' priorities, strategies and expansion plans? Who's my competition? Which competitor is most likely to grow at a higher rate?
Which areas of activity/business models will receive the most investment? Which sectors are most attractive to investors?
Which companies are going to experience the most growth in the near future? Which companies are most likely to receive investment or be acquired?
Training Methodology
We have developed training programs in an innovative set-up which guarantees our teams the acquisition of technical competences both in the field of corporate finance and in the field of psychology, that is much needed when it comes to negotiation processes.

We have a culture of continuous improvement of our processes, closely related to the use of information systems that allow the enhancement of internal communication between our teams, as well as external communication with our customers. Hence, we extend best practices identified internally in an efficient and rapid manner among our members.

Are you one of those who prefer to be well informed when making decisions?