OTCPK:CFNC.F

Stock Analysis Report

Executive Summary

Compagnie Financière Tradition SA operates as an interdealer broker of financial and non-financial products worldwide.


Snowflake Analysis

Fair value second-rate dividend payer.


Similar Companies

Share Price & News

How has Compagnie Financière Tradition's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

5.0%

CFNC.F

-4.2%

US Capital Markets

-4.2%

US Market


1 Year Return

n/a

CFNC.F

12.0%

US Capital Markets

14.0%

US Market

Return vs Industry: Insufficient data to determine how CFNC.F performed against the US Capital Markets industry.

Return vs Market: Insufficient data to determine how CFNC.F performed against the US Market.


Shareholder returns

CFNC.FIndustryMarket
7 Day5.0%-4.2%-4.2%
30 Day5.0%-2.1%-1.8%
90 Day5.0%1.1%2.6%
1 Yearn/a14.3%12.0%16.3%14.0%
3 Yearn/a35.2%27.6%43.2%34.0%
5 Yearn/a74.5%58.3%65.9%47.6%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Compagnie Financière Tradition undervalued compared to its fair value and its price relative to the market?

14.1x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CFNC.F ($110.22) is trading above our estimate of fair value ($100.48)

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


Price To Earnings Ratio

PE vs Industry: CFNC.F is good value based on its PE Ratio (14.1x) compared to the Capital Markets industry average (33.4x).

PE vs Market: CFNC.F is good value based on its PE Ratio (14.1x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate CFNC.F's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: CFNC.F is good value based on its PB Ratio (2x) compared to the US Capital Markets industry average (6.6x).


Next Steps

Future Growth

How is Compagnie Financière Tradition forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

8.7%

Forecasted Diversified Financials industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Compagnie Financière Tradition has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

  • Examine whether Compagnie Financière Tradition is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
  • While we do not consider unaudited financials to be a reliable enough to include in our analysis, you can access them on the OTC Markets Website. If you are looking for more of a qualitative research into the company, you can access Compagnie Financière Tradition's filings and announcements here.
  • Explore growth companies in the Diversified Financials industry.

Past Performance

How has Compagnie Financière Tradition performed over the past 5 years?

15.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CFNC.F has high quality earnings.

Growing Profit Margin: CFNC.F's current net profit margins (6%) are lower than last year (6%).


Past Earnings Growth Analysis

Earnings Trend: CFNC.F's earnings have grown by 15.4% per year over the past 5 years.

Accelerating Growth: CFNC.F's earnings growth over the past year (4.9%) is below its 5-year average (15.4% per year).

Earnings vs Industry: CFNC.F earnings growth over the past year (4.9%) underperformed the Capital Markets industry 8.4%.


Return on Equity

High ROE: CFNC.F's Return on Equity (14.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Compagnie Financière Tradition'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: CFNC.F has a low level of unsold assets or inventory.

Debt Coverage by Assets: CFNC.F's debt is covered by short term assets (assets are 4.8x debt).


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

What is Compagnie Financière Tradition's current dividend yield, its reliability and sustainability?

4.52%

Current Dividend Yield


Dividend Yield vs Market

company4.5%marketbottom25%1.5%markettop25%3.8%industryaverage2.0%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: CFNC.F's dividend (4.52%) is higher than the bottom 25% of dividend payers in the US market (1.48%).

High Dividend: CFNC.F's dividend (4.52%) is in the top 25% of dividend payers in the US market (3.77%)


Stability and Growth of Payments

Stable Dividend: CFNC.F's dividend payments have been volatile in the past 10 years.

Growing Dividend: CFNC.F's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (63.8%), CFNC.F's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

7.9yrs

Average management tenure


CEO

Patrick Combes (66yo)

CHF11,600

Compensation

Mr. Patrick Combes serves as the Chairman of Executive Board, Chief Executive Officer and Chairman of Board of Compagnie Financière Tradition SA and was its President. Mr. Combes serves as the Chief Execut ...


Leadership Team

NamePositionTenureCompensationOwnership
Patrick Combes
Chairman of Board0yrsCHF11.60kno data
Michael Leibowitz
COO of Americas & EMEA and Member of Executive Board0yrsCHF5.28m1.35% CHF10.6m
Francois Brisebois
CFO & Member of Executive Board7.9yrsno data0.15% CHF1.2m
Dominique Velter
Director of Strategic Marketing & Member of Executive Board0yrsno data0.072% CHF565.8k
Adrian Bell
COO of Asia & Pacific and Member of Executive Board7.9yrsno data1.96% CHF15.4m
Larry Rosenshein
COO of Tradition Americas & Member of Executive Board0yrsno data0.091% CHF716.8k
Yann L'huillier
Group Chief Information Officer9.9yrsno datano data
William Wostyn
Chief Legal Officer & Secretary0yrsno datano data
Mike Anderson
Co-head of London Business0yrsno datano data
Dan Marcus
Co-head of London Business0yrsno datano data

7.9yrs

Average Tenure

54yo

Average Age

Experienced Management: CFNC.F's management team is seasoned and experienced (7.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Patrick Combes
Chairman of Board0yrsCHF11.60kno data
François Carrard
Deputy Chairman0yrsCHF51.60k0.15% CHF1.2m
Christian Goecking
Non-Executive Independent Director23.1yrsCHF51.60k0.048% CHF381.2k
Urs Schneider
Non-Executive Independent Director23.1yrsCHF41.60k0.086% CHF678.9k
Robert Pennone
Non-Executive Independent Director23.1yrsCHF61.60k0.18% CHF1.5m
Hervé de Carmoy
Non-Executive Independent Director22.4yrsCHF59.10k0.064% CHF507.1k
Eric Solvet
Director1.8yrsCHF26.60kno data
Jean Marie
Non-Executive Independent Director23.1yrsCHF61.60kno data

23.1yrs

Average Tenure

75yo

Average Age

Experienced Board: CFNC.F's board of directors are seasoned and experienced ( 23.1 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

Compagnie Financière Tradition SA's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Compagnie Financière Tradition SA
  • Ticker: CFNC.F
  • Exchange: OTCPK
  • Founded: 1959
  • Industry: Investment Banking and Brokerage
  • Sector: Diversified Financials
  • Market Cap: CHF769.246m
  • Listing Market Cap: CHF787.234m
  • Shares outstanding: 7.16m
  • Website: https://www.tradition.com

Number of Employees


Location

  • Compagnie Financière Tradition SA
  • 11 Rue de Langallerie
  • Lausanne
  • Vaud
  • 1003
  • Switzerland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CFTSWX (SIX Swiss Exchange)YesBearer SharesCHCHFJan 1992
CFIDB (Deutsche Boerse AG)YesBearer SharesDEEURJan 1992
CFNC.FOTCPK (Pink Sheets LLC)YesBearer SharesUSUSDJan 1992
0QL7LSE (London Stock Exchange)YesBearer SharesGBCHFJan 1992

Biography

Compagnie Financière Tradition SA operates as an interdealer broker of financial and non-financial products worldwide. It provides capital market products, including basis swaps, credit and currency derivatives, inflation products, Latin American derivatives, non-deliverable swaps, overnight index swaps, short dates, and Turkish fixed income and rates products, as well as interest rate derivatives, options, and swaps. The company also offers energy and commodity products, such as coal, electricity, environmental products, natural gas, oil, precious metals, property derivatives, pulp and paper, refined products, soft commodities, tradition energy, weather, LNG, petroleum and LPG, and renewable energy credits. In addition, it provides equities comprising cash and preferred equities, equity derivatives, ETFs, institutional cash equities, single-stock options, delta-one products, exotics, post-reorg equities, index variance and equity finance swaps, and dividend swaps; and fixed income products consisting of asset swaps credit, floating rate notes, futures and options, mortgages, repurchase agreements, and securities, as well as corporate, covered, and government bonds. Further, the company offers foreign exchange FX products, such as emerging markets, FX listed futures and options, FX options, ParFX, spot and forward FX, and FX exotics; market data products; and money market products, including arbitrage, cash fund management, commercial paper, deposits and certificates of deposits, forward rate agreements, bank bills, federal funds, and short dates. Additionally, it provides services for other products, such as private equity, structured products, hedge fund secondaries, commodities Murabaha, and GCC fixed income. The company also develops information services; and sells market data. The company was founded in 1959 and is based in Lausanne, Switzerland. Compagnie Financière Tradition SA operates as a subsidiary of Financière Vermeer N.V. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/25 01:32
End of Day Share Price2020/02/19 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.