Societe Magasin General SA

Societe Magasin General SA exhibits a distressed capital structure characterized by negative total equity of -83.5 million TND against total liabilities of 682.9 million TND. The debt-to-equity ratio stands at -1.96, reflecting the negative equity base, while the current ratio of 0.62 indicates significant short-term liquidity pressure. Cash and equivalents are negligible at 4.6 thousand TND, and net cash is negative after subtracting total debt of 163.8 million TND. Despite these balance sheet constraints, the company generated positive operating cash flow of 98.0 million TND, resulting in a modest free cash flow of 9.2 million TND after capital expenditures of 16.3 million TND.

Profitability metrics reveal operational challenges, with a net loss of 6.4 million TND on revenues of 1.2 billion TND. The return on assets is negative at -1.1%, while the reported return on equity is 7.7%, a figure that is mathematically distorted by the negative equity denominator. The gross profit of 198.7 million TND suggests a gross margin of approximately 16.5%, but operating income is compressed to 19.7 million TND, indicating high operating leverage or expense intensity relative to sales. Without cohort median data for direct comparison, the negative net income and low operating margin suggest underperformance relative to typical retail peers.

Revenue grew 9.4% year-over-year to TND 1.2 billion in FY2026, demonstrating strong top-line expansion momentum.

Free cash flow surged 328.3% to TND 9.2 million in FY2026, indicating significant improvement in cash generation capabilities.

Long-term debt decreased steadily to TND 163.8 million in FY2026, reflecting a disciplined deleveraging strategy over the period.

Operating income turned positive at TND 19.7 million in FY2026, marking a recovery from previous years' operating losses.

The company reported a net loss of TND 6.4 million in FY2026, continuing a five-year streak of negative net income.

Net margin of -0.5% places the company in the bottom quartile compared to its peer cohort median of 5.2%.

High credit risk is flagged, alongside a negative book value of TND 83.5 million, indicating significant balance sheet weakness.

Cash conversion ratio of -15.26% is in the bottom quartile, signaling poor ability to convert earnings into cash.

Revenue TND 1.20B, +9,4% YoY; Operating income +23,3% YoY.

• ▍Revenue TND 1.20B, +9,4% YoY
• ▍Operating income +23,3% YoY
• ▍Net income +36,2% YoY
• ▍Free cash flow +328,3% YoY
• ▍Net margin -0.5%

Revenue TND 1.10B, +2,7% YoY; Operating income +502,6% YoY.

• ▍Revenue TND 1.10B, +2,7% YoY
• ▍Operating income +502,6% YoY
• ▍Net income +76,2% YoY
• ▍Free cash flow +112,4% YoY
• ▍Net margin -0.9%

Revenue TND 1.07B, +7,7% YoY; Operating income −201,5% YoY.

• ▍Revenue TND 1.07B, +7,7% YoY
• ▍Operating income −201,5% YoY
• ▍Net income −8,1% YoY
• ▍Free cash flow +16,3% YoY
• ▍Net margin -4.0%

Revenue TND 993.3M, +1,4% YoY; Operating income −114,5% YoY.

• ▍Revenue TND 993.3M, +1,4% YoY
• ▍Operating income −114,5% YoY
• ▍Net income −45,7% YoY
• ▍Free cash flow −135,6% YoY
• ▍Net margin -3.9%

Revenue TND 979.8M; Operating income TND 9.1M.

• ▍Revenue TND 979.8M
• ▍Operating income TND 9.1M
• ▍Net margin -2.7%