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.

Snowflake

Fundamentals

Proven track record average dividend payer.


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


Market Performance


7 Day Return

0.6%

ENXTPA:COFA

-0.6%

FR Insurance

-0.8%

FR Market


1 Year Return

34.6%

ENXTPA:COFA

-1.8%

FR Insurance

-1.5%

FR Market

COFA outperformed the Insurance industry which returned -1.8% over the past year.

COFA outperformed the Market in France which returned -1.5% over the past year.


Share holder returns

COFAIndustryMarket
7 Day0.6%-0.6%-0.8%
30 Day-0.7%-9.5%-4.8%
90 Day16.0%-5.4%-1.3%
1 Year47.3%34.6%3.7%-1.8%1.8%-1.5%
3 Year168.0%132.3%46.7%26.2%39.1%25.5%
5 Year24.4%-4.0%52.0%18.9%56.4%33.2%

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 based on future cash flows and its price relative to the stock market?

11.66x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

COFACE's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

COFACE's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

COFACE is good value based on earnings compared to the FR Insurance industry average.

COFACE is good value based on earnings compared to the France market.


Price Based on Expected Growth

COFACE is poor value based on expected growth next year.


Price Based on Value of Assets

COFACE is overvalued based on assets compared to the FR Insurance industry average.


Next Steps

Future Growth

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

0.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

COFACE's revenue is expected to grow by 2.8% yearly, however this is not considered high growth (20% yearly).

COFACE's earnings are expected to grow by 0.9% yearly, however this is not considered high growth (20% yearly).

COFACE's revenue growth is positive but not above the France market average.

COFACE's earnings growth is positive but not above the France market average.

COFACE's earnings growth is expected to exceed the low risk savings rate of 0.7%.


Earnings per Share Growth Estimates


Future Return on Equity

COFACE is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has COFACE performed over the past 5 years?

-2.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

COFACE's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.

COFACE's 1-year earnings growth exceeds its 5-year average (9.7% vs -2.1%)

COFACE's earnings growth has exceeded the FR Insurance industry average in the past year (9.7% vs 5.9%).


Return on Equity

COFACE has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

COFACE used its assets more efficiently than the FR Insurance industry average last year based on Return on Assets.


Return on Capital Employed

COFACE has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is COFACE's financial position?


Financial Position Analysis

COFACE's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

COFACE's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

COFACE's level of debt (157.7%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (148.2% vs 157.7% today).

Debt is not well covered by operating cash flow (7.8%, less than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 10.9x coverage).


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 1.4x debt.


Next Steps

Dividend

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

6.73%

Expected Dividend Yield


Dividend Yield and Payments Analysis

COFACE's pays a higher dividend yield than the bottom 25% of dividend payers in France (1.59%).

COFACE's dividend is above the markets top 25% of dividend payers in France (4.63%).

COFACE has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).

Dividend payments have increased, but COFACE only paid a dividend in the past 4 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.2x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.5x coverage).


Next Steps

Management

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

2.8yrs

Average management tenure


CEO

Xavier Durand (55yo)

3.5yrs

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

Xavier's remuneration is higher than average for companies of similar size in France.

Xavier's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

2.8yrs

Average Tenure

55yo

Average Age

The tenure for the COFACE management team is about average.


Board Age and Tenure

5.1yrs

Average Tenure

55yo

Average Age

The tenure for the COFACE board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Thomas Jacquet

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

    • Tenure: 2.9yrs
  • Xavier Durand (55yo)

    CEO & GM

    • Tenure: 3.5yrs
    • Compensation: €2.09m
  • Franck Marzilli

    Group Compliance Director

    • Tenure: 2.7yrs
  • Carine Pichon (46yo)

    Chief Financial & Risk Officer

    • Tenure: 6.6yrs
  • Monica Coull

    Communications Director

    • Tenure: 0.0yrs
  • Antonio Marchitelli

    Chief Executive Officer of Western Europe Region

    • Tenure: 2.3yrs
  • Katarzyna Kompowska

    Chief Executive Officer of Northern Europe Region

    • Tenure: 1.8yrs
  • Nicolas Andriopoulos

    Managing Director of Coface Re

    • Tenure: 2.9yrs
  • Keyvan Shamsa (57yo)

    Business Technology Director

    • Tenure: 0.8yrs
  • Pierre Bevierre

    Chief Human Resources Officer

    • Tenure: 0.0yrs

Board Members

  • Eric Hémar (55yo)

    Independent Director

    • Tenure: 5.1yrs
    • Compensation: €51.00k
  • Michael Ferrante

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

    • Tenure: 0.0yrs
  • Olivier Zarrouati (60yo)

    Independent Director

    • Tenure: 5.1yrs
    • Compensation: €40.00k
  • Sharon MacBeath (50yo)

    Independent Director

    • Tenure: 5.1yrs
    • Compensation: €29.00k
  • Daniel Karyotis (58yo)

    Non-Independent Director

    • Tenure: 2.5yrs
    • Compensation: €22.00k
  • François Riahi (46yo)

    Chairman of the Board

    • Tenure: 1.2yrs
    • Compensation: €1.48m
  • Jean Arondel (69yo)

    Director

    • Tenure: 6.8yrs
    • Compensation: €24.00k
  • Anne Sallé-Mongauze (53yo)

    Non-Independent Director

    • Tenure: 2.8yrs
  • Jean-Paul Dumortier (71yo)

    Non-Independent Director

    • Tenure: 6.1yrs
    • Compensation: €32.50k
  • Isabelle Rodney (53yo)

    Non-Independent Director

    • Tenure: 2.8yrs
    • 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: €1.602b
  • Shares outstanding: 150.83m
  • 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  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/19 21:54
End of Day Share Price2019/08/19 00:00
Earnings2019/06/30
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.