ENXTPA:COFA

Stock Analysis Report

Executive Summary

COFACE SA, through its subsidiaries, provides credit insurance products and related services for small and medium enterprises, mid-market companies, multi-nationals, financial institutions, and clients of distributer partners.

Rewards

Trading at 9.4% below its fair value

Earnings grew by 11.8% over the past year

Risk Analysis

Earnings are forecast to decline by an average of -1.4% per year for the next 3 years

Unstable dividend track record



Snowflake Analysis

Solid track record, good value and pays a dividend.


Similar Companies

Share Price & News

How has COFACE's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: COFA has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.2%

COFA

-0.3%

FR Insurance

-1.4%

FR Market


1 Year Return

44.4%

COFA

10.1%

FR Insurance

21.1%

FR Market

Return vs Industry: COFA exceeded the French Insurance industry which returned 15% over the past year.

Return vs Market: COFA exceeded the French Market which returned 24.9% over the past year.


Shareholder returns

COFAIndustryMarket
7 Day-1.2%-0.3%-1.4%
30 Day9.0%-3.1%0.5%
90 Day19.3%-0.5%5.9%
1 Year58.1%44.4%16.2%10.1%25.3%21.1%
3 Year124.2%94.3%23.2%6.0%43.2%29.5%
5 Year39.3%7.5%50.2%17.4%63.1%39.5%

Price Volatility Vs. Market

How volatile is COFACE's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is COFACE undervalued compared to its fair value and its price relative to the market?

10.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: COFA (€11.75) is trading below our estimate of fair value (€12.97)

Significantly Below Fair Value: COFA is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: COFA is good value based on its PE Ratio (12.9x) compared to the Insurance industry average (18.3x).

PE vs Market: COFA is good value based on its PE Ratio (12.9x) compared to the French market (18.1x).


Price to Earnings Growth Ratio

PEG Ratio: COFA's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: COFA is good value based on its PB Ratio (1x) compared to the FR Insurance industry average (1x).


Next Steps

Future Growth

How is COFACE forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

-1.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: COFA's earnings are forecast to decline over the next 3 years (-1.4% per year).

Earnings vs Market: COFA's earnings are forecast to decline over the next 3 years (-1.4% per year).

High Growth Earnings: COFA's earnings are forecast to decline over the next 3 years.

Revenue vs Market: COFA's revenue (3.6% per year) is forecast to grow slower than the French market (4.7% per year).

High Growth Revenue: COFA's revenue (3.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: COFA's Return on Equity is forecast to be low in 3 years time (7%).


Next Steps

Past Performance

How has COFACE performed over the past 5 years?

1.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: COFA has high quality earnings.

Growing Profit Margin: COFA's current net profit margins (9.6%) are higher than last year (8.9%).


Past Earnings Growth Analysis

Earnings Trend: COFA's earnings have grown by 1.4% per year over the past 5 years.

Accelerating Growth: COFA's earnings growth over the past year (11.8%) exceeds its 5-year average (1.4% per year).

Earnings vs Industry: COFA earnings growth over the past year (11.8%) exceeded the Insurance industry -36.8%.


Return on Equity

High ROE: COFA's Return on Equity (7.5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is COFACE's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: COFA has a low level of unsold assets or inventory.

Debt Coverage by Assets: COFA's debt is covered by short term assets (assets are 1.4x debt).


Financial Institutions Analysis

Asset Level: COFA's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if COFA has a sufficient allowance for bad loans.

Low Risk Liabilities: COFA reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if COFA has an acceptable proportion of non-loan assets held.

Low Risk Deposits: COFA has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if COFA has an appropriate level of bad loans.


Next Steps

Dividend

What is COFACE's current dividend yield, its reliability and sustainability?

6.79%

Current Dividend Yield


Dividend Yield vs Market

company6.8%marketbottom25%1.5%markettop25%4.5%industryaverage5.4%forecastin3Years6.0%

Current dividend yield vs market & industry

Notable Dividend: COFA's dividend (6.72%) is higher than the bottom 25% of dividend payers in the French market (1.46%).

High Dividend: COFA's dividend (6.72%) is in the top 25% of dividend payers in the French market (4.43%)


Stability and Growth of Payments

Stable Dividend: COFA has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: COFA's dividend payments have increased, but the company has only paid a dividend for 4 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (86.7%), COFA's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: COFA's dividends in 3 years are forecast to be covered by earnings (66% payout ratio).


Next Steps

Management

What is the CEO of COFACE's salary, the management and board of directors tenure and is there insider trading?

3.2yrs

Average management tenure


CEO

Xavier Durand (55yo)

3.9yrs

Tenure

€2,091,377

Compensation

Mr. Xavier Pascal Durand has been Chief Executive Officer of Coface SA since February 9, 2016 and serves as its General Manager. Mr. Durand has been Chief Executive Officer of the Insurance Group Coface si ...


CEO Compensation Analysis

Compensation vs Market: Xavier's total compensation ($USD2.33M) is above average for companies of similar size in the French market ($USD1.23M).

Compensation vs Earnings: Xavier's compensation has been consistent with company performance over the past year.


Management Age and Tenure

3.2yrs

Average Tenure

55yo

Average Age

Experienced Management: COFA's management team is considered experienced (3.2 years average tenure).


Board Age and Tenure

3.2yrs

Average Tenure

53yo

Average Age

Experienced Board: COFA's board of directors are considered experienced (3.2 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Thomas Jacquet

    Head of Group Financial Communication and Group IR & Rating Agencies Director

    • Tenure: 3.3yrs
  • Xavier Durand (55yo)

    CEO & GM

    • Tenure: 3.9yrs
    • Compensation: €2.09m
  • Franck Marzilli

    Group Compliance Director

    • Tenure: 3.1yrs
  • Carine Pichon (46yo)

    Chief Financial & Risk Officer

    • Tenure: 7yrs
  • Monica Coull

    Communications Director

    • Antonio Marchitelli

      Chief Executive Officer of Western Europe Region

      • Tenure: 2.8yrs
    • Katarzyna Kompowska

      Chief Executive Officer of Northern Europe Region

      • Tenure: 2.3yrs
    • Nicolas Andriopoulos

      Managing Director of Coface Re

      • Tenure: 3.3yrs
    • Keyvan Shamsa (57yo)

      Business Technology Director

      • Tenure: 1.2yrs
    • Pierre Bevierre

      Chief Human Resources Officer


      Board Members

      • Eric Hémar (55yo)

        Independent Director

        • Tenure: 5.5yrs
        • Compensation: €51.00k
      • Michael Ferrante

        Chairman & CEO of Coface Holding North America & Director of Coface Holding North America

        • Olivier Zarrouati (60yo)

          Independent Director

          • Tenure: 5.5yrs
          • Compensation: €40.00k
        • Sharon MacBeath (50yo)

          Independent Director

          • Tenure: 5.5yrs
          • Compensation: €29.00k
        • Daniel Karyotis (58yo)

          Non-Independent Director

          • Tenure: 2.9yrs
          • Compensation: €22.00k
        • François Riahi (46yo)

          Chairman of the Board

          • Tenure: 1.6yrs
          • Compensation: €1.48m
        • Jean Arondel (69yo)

          Director

          • Tenure: 7.2yrs
          • Compensation: €24.00k
        • Anne Sallé-Mongauze (53yo)

          Non-Independent Director

          • Tenure: 3.2yrs
        • Nathalie Lomon (48yo)

          Independent Director

          • Tenure: 2.5yrs
          • Compensation: €43.00k
        • Isabelle Rodney (53yo)

          Non-Independent Director

          • Tenure: 3.2yrs
          • Compensation: €30.50k

        Company Information

        COFACE SA's company bio, employee growth, exchange listings and data sources


        Key Information

        • Name: COFACE SA
        • Ticker: COFA
        • Exchange: ENXTPA
        • Founded: 1946
        • Industry: Property and Casualty Insurance
        • Sector: Insurance
        • Market Cap: €1.758b
        • Shares outstanding: 151.03m
        • Website: https://www.coface.com

        Number of Employees


        Location

        • COFACE SA
        • 1, place Costes et Bellonte
        • Bois-Colombes
        • Ile-de-France
        • 92270
        • France

        Listings

        TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
        COFAENXTPA (Euronext Paris)YesOrdinary SharesFREURJun 2014
        COFAPBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURJun 2014
        0QVKLSE (London Stock Exchange)YesOrdinary SharesGBEURJun 2014
        65CDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJun 2014

        Biography

        COFACE SA, through its subsidiaries, provides credit insurance products and related services for small and medium enterprises, mid-market companies, multi-nationals, financial institutions, and clients of distributer partners. It offers credit insurance products to protect companies against potential non-payment by their customers. The company also provides factoring, business information, and debt collection services, as well as contract, and customs and excise bonds. It operates in Western Europe, Northern Europe, Central Europe, the Mediterranean and Africa, North America, Latin America, and the Asia-Pacific. COFACE SA has a strategic partnership with Tradeshift. The company was founded in 1946 and is headquartered in Bois-Colombes, France. 


        Company Analysis and Financial Data Status

        All financial data provided by Standard & Poor's Capital IQ.
        DataLast Updated (UTC time)
        Company Analysis2020/01/25 22:12
        End of Day Share Price2020/01/24 00:00
        Earnings2019/09/30
        Annual Earnings2018/12/31


        Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.