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.
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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.
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".
| 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).
| 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
| 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 |
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