(BFM Bourse) – BFM Bourse has compiled the earnings of the companies making up the CAC 40 index. TotalEnergies and Stellantis come in far ahead.
The standards for measuring the size of a company are not lacking. In terms of market capitalization, LVMH is far ahead of the competition on the CAC 40, and even sits at the top of Europe, having recently crossed the 400 billion euro mark. L’Oréal, second, only points to 202 billion euros.
But what if we take the first line of the income statement, namely the turnover or “topline” in accounting jargon? Obviously, the classification turns out to be very different, the values being exchanged with different stock market multiples in relation to the turnover according to their sector. We can, for example, cite the case of the automobile industry where the “value of equity over turnover” multiples are historically low (Tesla is an exception).
In the end, taking income as criteria, TotalEnergies comes out on top with a slight lead over Stellantis. Axa and Carrefour are left behind and ArcelorMittal completes the top 5.
We detail the ranking in the infographic below and our methodology at the bottom of this article. On this last point, two important clarifications. First, we took all the CAC 40 groups, including those publishing their results in dollars (TotalEnergies, ArcelorMittal and STMicroelectronics) – which means converting their income into euros – as well as the banks, using the equivalent of the figure of net banking income.
In its financial profile of the CAC 40, the consulting and auditing group EY chooses him to calculate a cumulative turnover to exclude banking, insurance, property companies and companies publishing in foreign currencies. On this basis Stellantis would take the lead in the ranking, ahead of Carrefour, LVMH, Engie and Airbus.
Second important point: we have excluded the changes in scope that occurred after 2021, in particular the takeover of the majority of Suez’s assets by Veolia, and, above all, the end of activities in Russia. For Renault, this country represented approximately 10% of turnover and 4.55 billion euros. Excluding this, the diamond group would drop on paper from eleventh to thirteenth place.
Methodological notes
To convert TotalEnergies’ revenues (expressed in dollars) we took the average exchange rate used by the company in its accounts, i.e. $1.1827 over the whole of 2021. We applied this same exchange rate for ArcelorMittal and STMicroelectronics which also publish their results in dollars.
For TotalEnergies, again, we chose not the company’s gross revenue ($205 billion in 2021) but “sales proceeds” ($184.63 billion), which excludes excise duties. , that is to say duties or taxes the amount of which is calculated on the quantity of petroleum products released for consumption.
For the banks, we took the net banking income.
For Dassault Systèmes, we used non-IFRS revenue.
For comparison reasons, we have chosen not to restate income from Russia, even when the groups’ exposure is relatively significant. For information, for Renault this would represent nearly 10% of income, for Societe Generale about 2.8% of net banking income.
For Stellantis we have used pro forma data, i.e. assuming that the merger between Fiat Chrysler and PSA took place on January 1, 2021 and not in mid-January as was actually the case.
For Unibail-Rodamco-Westfield we took the turnover as the company defines it in its 2021 universal registration document to determine the share of its activities eligible for the European taxonomy.
For Pernod-Ricard and Alstom, which publish on staggered financial years, we have taken the turnover for the 2021-2022 financial years.
Julien Marion (text) and Théophile Magoria (computer graphics)
Tradingsat Tradingsat – ©2023 BFM Bourse