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

0.4%

COFA

4.5%

FR Insurance

2.9%

FR Market


1 Year Return

36.1%

COFA

2.6%

FR Insurance

10.2%

FR Market

Return vs Industry: COFA exceeded the French Insurance industry which returned 2.6% over the past year.

Return vs Market: COFA exceeded the French Market which returned 10.2% over the past year.


Share holder returns

COFAIndustryMarket
7 Day0.4%4.5%2.9%
30 Day-12.6%3.2%-0.3%
90 Day4.1%-2.5%0.1%
1 Year49.0%36.1%8.3%2.6%14.0%10.2%
3 Year78.3%54.5%38.9%19.5%44.3%30.4%
5 Year30.7%0.9%73.0%35.3%75.2%49.3%

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?

10.97x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Undervalued: COFA (€9.99) is trading above our estimate of fair value (€9.69)

Significantly Undervalued: COFA is trading above our estimate of fair value.


Price Based on Earnings

PE vs Industry: COFA is good value based on its PE Ratio (11x) compared to the Insurance industry average (19.9x).

PE vs Market: COFA is good value based on its PE Ratio (11x) compared to the French market (17.1x).


Price Based on Expected Growth

Low PEG Ratio: COFA is poor value based on its PEG Ratio (13.5x)


Price Based on Value of Assets

PB vs Industry: COFA is good value based on its PB Ratio (0.8x) compared to the FR Insurance industry average (0.8x).


Next Steps

Future Growth

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

0.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: COFA's forecast earnings growth (0.8% per year) is above the savings rate (0.7%).

Earnings vs Market: COFA's earnings (0.8% per year) are forecast to grow slower than the French market (11.1% per year).

High Growth Earnings: COFA's earnings are forecast to grow, but not significantly.

Revenue vs Market: COFA's revenue (2.8% per year) is forecast to grow slower than the French market (4.5% per year).

High Growth Revenue: COFA's revenue (2.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: COFA's Return on Equity is forecast to be low in 3 years time (7.5%).


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

Earnings Trend: COFA's earnings have declined by -2.1% per year over the past 5 years.

Accelerating Growth: COFA's earnings growth over the past year (9.7%) exceeds its 5-year average (-2.1% per year).

Earnings vs Industry: COFA earnings growth over the past year (9.7%) exceeded the Insurance industry 5.9%.


Return on Equity

High ROE: COFA's Return on Equity (7.6%) is considered low.


Return on Assets

ROA vs Industry: COFA has a higher Return on Assets than the Insurance industry average last year.


Return on Capital Employed

ROCE Improving: COFA has significantly improved its Return on Capital Employed over the past 3 years.


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 1.425960x 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?

6.90%

Expected Dividend Yield


Dividend Yield vs Market

company7.9%marketbottom25%1.6%markettop25%4.6%industryaverage4.9%forecastin3Years6.9%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: COFA's dividend (7.91%) is higher than the bottom 25% of dividend payers in the French market (1.57%).

High Dividend: COFA's dividend (7.91%) is in the top 25% of dividend payers in the French market (4.65%)

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 (65.2% 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?

3.0yrs

Average management tenure


CEO

Xavier Durand (55yo)

3.7yrs

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 ($USD2.31M) is about average for companies of similar size in the French market ($USD1.14M).

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


Management Age and Tenure

3.0yrs

Average Tenure

55yo

Average Age

Experienced Management: COFA's management team is considered experienced (3 years average tenure).


Board Age and Tenure

5.3yrs

Average Tenure

55yo

Average Age

Experienced Board: COFA's board of directors are considered experienced (5.3 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


Management Team

  • Thomas Jacquet

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

    • Tenure: 3.1yrs
  • Xavier Durand (55yo)

    CEO & GM

    • Tenure: 3.7yrs
    • Compensation: €2.09m
  • Franck Marzilli

    Group Compliance Director

    • Tenure: 2.8yrs
  • Carine Pichon (46yo)

    Chief Financial & Risk Officer

    • Tenure: 6.8yrs
  • Monica Coull

    Communications Director

    • Tenure: 0yrs
  • Antonio Marchitelli

    Chief Executive Officer of Western Europe Region

    • Tenure: 2.5yrs
  • Katarzyna Kompowska

    Chief Executive Officer of Northern Europe Region

    • Tenure: 2yrs
  • Nicolas Andriopoulos

    Managing Director of Coface Re

    • Tenure: 3.1yrs
  • Keyvan Shamsa (57yo)

    Business Technology Director

    • Tenure: 0.9yrs
  • Pierre Bevierre

    Chief Human Resources Officer

    • Tenure: 0yrs

Board Members

  • Eric Hémar (55yo)

    Independent Director

    • Tenure: 5.3yrs
    • Compensation: €51.00k
  • Michael Ferrante

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

    • Tenure: 0yrs
  • Olivier Zarrouati (60yo)

    Independent Director

    • Tenure: 5.3yrs
    • Compensation: €40.00k
  • Sharon MacBeath (50yo)

    Independent Director

    • Tenure: 5.3yrs
    • Compensation: €29.00k
  • Daniel Karyotis (58yo)

    Non-Independent Director

    • Tenure: 2.7yrs
    • Compensation: €22.00k
  • François Riahi (46yo)

    Chairman of the Board

    • Tenure: 1.3yrs
    • Compensation: €1.48m
  • Jean Arondel (69yo)

    Director

    • Tenure: 6.9yrs
    • Compensation: €24.00k
  • Jean-Paul Dumortier (71yo)

    Non-Independent Director

    • Tenure: 6.3yrs
    • Compensation: €32.50k
  • Nathalie Lomon (48yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: €43.00k
  • Isabelle Rodney (53yo)

    Non-Independent Director

    • Tenure: 2.9yrs
    • 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: €1.506b
  • Shares outstanding: 150.77m
  • 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
CFAC.YOTCPK (Pink Sheets LLC)ADSUSUSDOct 2019

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 Analysis2019/10/13 23:37
End of Day Share Price2019/10/11 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.

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