ENXTPA:COFA

Stock Analysis Report

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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 Analysis

Fair value with moderate growth potential.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

9.0%

COFA

-5.4%

FR Insurance

-3.4%

FR Market


1 Year Return

-34.3%

COFA

-29.0%

FR Insurance

-7.3%

FR Market

Return vs Industry: COFA underperformed the French Insurance industry which returned -29% over the past year.

Return vs Market: COFA underperformed the French Market which returned -7.3% over the past year.


Shareholder returns

COFAIndustryMarket
7 Day9.0%-5.4%-3.4%
30 Day12.3%-9.1%-4.1%
90 Day30.8%8.5%9.4%
1 Year-34.3%-34.3%-27.1%-29.0%-5.3%-7.3%
3 Year-4.5%-15.7%-27.5%-36.5%6.2%-2.9%
5 Year-9.1%-26.6%-14.0%-31.9%18.6%2.2%

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 compared to its fair value and its price relative to the market?

7.14x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: COFA (€6.93) is trading above our estimate of fair value (€5.4)

Significantly Below Fair Value: COFA is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: COFA is good value based on its PE Ratio (7.1x) compared to the FR Insurance industry average (11.2x).

PE vs Market: COFA is good value based on its PE Ratio (7.1x) compared to the French market (16x).


Price to Earnings Growth Ratio

PEG Ratio: COFA is good value based on its PEG Ratio (0.3x)


Price to Book Ratio

PB vs Industry: COFA's PB Ratio (0.5x) is in line with the FR Insurance industry average.


Next Steps

Future Growth

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

25.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: COFA's forecast earnings growth (25.5% per year) is above the savings rate (0.6%).

Earnings vs Market: COFA's earnings (25.5% per year) are forecast to grow faster than the French market (22.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: COFA's revenue is expected to decline over the next 3 years (-0.6% per year).

High Growth Revenue: COFA's revenue is forecast to decline over the next 3 years (-0.6% 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 (7.4%).


Next Steps

Past Performance

How has COFACE performed over the past 5 years?

10.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: COFA has high quality earnings.

Growing Profit Margin: COFA's current net profit margins (8.1%) are lower than last year (8.5%).


Past Earnings Growth Analysis

Earnings Trend: COFA's earnings have grown by 10.4% per year over the past 5 years.

Accelerating Growth: COFA's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: COFA had negative earnings growth (-0.2%) over the past year, making it difficult to compare to the Insurance industry average (0.4%).


Return on Equity

High ROE: COFA's Return on Equity (6.6%) is considered low.


Next Steps

Financial Health

How is COFACE's financial position?


Financial Position Analysis

Short Term Liabilities: COFA's short term assets (€4.3B) exceed its short term liabilities (€2.6B).

Long Term Liabilities: COFA's short term assets (€4.3B) exceed its long term liabilities (€3.1B).


Debt to Equity History and Analysis

Debt Level: COFA's debt to equity ratio (150.3%) is considered high.

Reducing Debt: COFA's debt to equity ratio has increased from 149.1% to 150.3% over the past 5 years.

Debt Coverage: COFA's debt is not well covered by operating cash flow (11.1%).

Interest Coverage: COFA's interest payments on its debt are well covered by EBIT (9.4x coverage).


Balance Sheet


Next Steps

Dividend

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

7.99%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate COFA's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate COFA's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if COFA's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if COFA's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: COFA is not paying a notable dividend for the French market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of COFA's dividend in 3 years as they are not forecast to pay a notable one for the French market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.9yrs

Average management tenure


CEO

Xavier Durand (56 yo)

4.5yrs

Tenure

€1,923,786

Compensation

Mr. Xavier Pascal Durand has been Chief Executive Officer of Coface SA since February 9, 2016 and was its MD. Mr. Durand has been Chief Executive Officer of the Insurance Group Coface since February 2016. ...


CEO Compensation Analysis

Compensation vs Market: Xavier's total compensation ($USD2.26M) is above average for companies of similar size in the French market ($USD812.67K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Xavier Durand
Chief Executive Officer4.5yrs€1.92mno data
Carine Pichon
Group Chief Financial & Risk Officer7.58yrsno datano data
Keyvan Shamsa
Business Technology Director1.75yrsno datano data
Thomas Jacquet
Head of Investor Relations & Rating Agencies3.92yrsno datano data
Franck Marzilli
Group Compliance Director3.67yrsno datano data
Monica Coull
Communications Directorno datano datano data
Pierre Bevierre
Chief Human Resources Officerno datano datano data
Frederic Bourgeois
Managing Director of UK & Ireland7.83yrsno datano data
Antonio Marchitelli
Chief Executive Officer of Western Europe Region3.33yrsno datano data
Katarzyna Kompowska
Chief Executive Officer of Northern Europe Region2.83yrsno datano data
Nicolas Andriopoulos
Managing Director of Coface Re3.92yrsno datano data
Bhupesh Gupta
Chief Executive Officer of Asia Pacific Region3.92yrsno datano data

3.9yrs

Average Tenure

56yo

Average Age

Experienced Management: COFA's management team is considered experienced (3.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Michael Ferrante
Chairman & CEO of Coface Holding North America & Director of Coface Holding North Americano datano datano data
Eric Hemar
Independent Director6.08yrs€55.00k0.00059%
€ 6.0k
Olivier Zarrouati
Independent Director6.08yrs€40.00k0.00033%
€ 3.3k
Sharon MacBeath
Independent Director6.08yrs€33.00k0.00033%
€ 3.3k
Daniel Karyotis
Non-Independent Director3.5yrs€23.00k0.00066%
€ 6.7k
François Riahi
Chairman of the Board2.17yrs€1.95m0.00033%
€ 3.3k
Jean Arondel
Director7.75yrs€26.00k0.00066%
€ 6.7k
Anne Sallé-Mongauze
Non-Independent Director3.75yrsno data0.00033%
€ 3.3k
Isabelle Laforgue
Independent Director3.08yrs€41.00k0.00033%
€ 3.3k
Nathalie Lomon
Independent Director3.08yrs€55.00k0.00060%
€ 6.1k
Nathalie Bricker
Director1.25yrsno data0.00033%
€ 3.3k
Isabelle Rodney
Non-Independent Director3.75yrs€41.00k0.00033%
€ 3.3k

3.8yrs

Average Tenure

54yo

Average Age

Experienced Board: COFA's board of directors are considered experienced (3.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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.


Top Shareholders

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: €1.010b
  • Shares outstanding: 150.70m
  • 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 Analysis2020/08/03 21:34
End of Day Share Price2020/08/03 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.