Coface SA (COFA) AI Stock Analysis

• Market Cap: €2.42B
• Dividend Yield: 8.61%
• Average Volume (3M): 169.84K
• Price to Earnings (P/E): 9.7
• Beta (1Y): 0.81
• Revenue Growth: 2.45%
• EPS Growth: 2.67%
• Country: FR
• Employees: 4,960
• Sector: Financial
• Sector Strength: 75
• Industry: Insurance - Reinsurance
• EPS (TTM): 0.42
• Shares Outstanding: 150,179,800
• 10 Day Avg. Volume: 164,889
• 30 Day Avg. Volume: 169,839
• PEG Ratio: -4.15
• Price to Book (P/B): 1.08
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 13.94
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €18.77
• Price Target Upside: 13.21% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 80 Outperform
• Price Target: €19.00 ▲(14.60%Upside)

Coface SA receives a strong overall score, led by its robust financial performance and attractive valuation. The technical analysis supports a positive outlook, although vigilance is required due to potential overbought conditions.

Coface SA Business Overview & Revenue Model

Company Description

COFACE SA, through its subsidiaries, provides credit insurance products and related services for microenterprises, small and medium enterprises, mid-market companies, international corporations, financial institutions, and clients of distribution partners. The company offers credit insurance products to protect companies against default on payment of its trade receivables. It also provides integrated credit management solutions comprising credit insurance, single risk insurance, business information and debt collection services for insured and uninsured businesses; and factoring services, as well as contract and environmental surety, customs and excise, and legal bonds; and payment guarantees. In addition, the company offers business information services through its ICON portal. It operates in Western Europe, Northern Europe, Central and Eastern Europe, the Mediterranean and Africa, North America, Latin America, and the Asia-Pacific. The company was founded in 1946 and is headquartered in Bois-Colombes, France.

How the Company Makes Money

Coface SA makes money primarily through the premiums it charges for its credit insurance policies, which protect businesses from financial losses due to non-payment by their clients. The company also generates revenue from its ancillary services such as business information services, which provide insights into buyer creditworthiness, and debt collection services that assist in recovering unpaid debts. Additionally, Coface's factoring services, which involve purchasing a company's accounts receivable, provide another revenue stream. The company collaborates with various financial institutions and leverages its global network to enhance its service offerings and expand its client base, contributing to its earnings.

Coface SA Financial Statement Overview

Summary

Coface SA demonstrates strong financial health with impressive revenue growth and solid profitability. The balance sheet is stable, though liabilities require monitoring, and cash flow is robust, albeit with fluctuations in investing cash flow.

Income Statement

Coface SA showed strong income statement performance with consistent revenue growth and solid profitability. The TTM (Trailing-Twelve-Months) revenue indicates a healthy growth trend, while the gross profit margin remains robust. The net profit margin is stable, reflecting efficient operations. However, the slight decrease in annual net income suggests a need for continued focus on improving net profitability.

Balance Sheet

The balance sheet of Coface SA is strong, with a solid equity ratio and manageable debt levels. The debt-to-equity ratio indicates cautious leveraging, and return on equity reflects effective use of shareholder funds. However, the increase in total liabilities over recent periods suggests a potential risk that needs monitoring to maintain balance sheet stability.

Cash Flow

Coface SA's cash flow statement is robust, with positive operating cash flow and consistent free cash flow generation. The free cash flow growth rate is promising, and the company has maintained a healthy cash position. However, fluctuations in investing cash flow highlight the need for prudent investment management to sustain cash flow strength.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.92B	1.60B	242.51M	1.28B	1.12B
Gross Profit	1.45B	1.54B	242.51M	1.28B	1.12B
EBITDA	446.74M	406.19M	380.41M	350.29M	184.92M
Net Income	261.07M	240.50M	240.44M	223.82M	82.90M
Balance Sheet
Total Assets	8.08B	7.90B	8.45B	8.04B	7.55B
Cash, Cash Equivalents and Short-Term Investments	3.22B	2.86B	553.79M	3.48B	3.30B
Total Debt	1.79B	659.67M	1.74B	2.79B	2.44B
Total Liabilities	5.89B	5.85B	6.49B	5.90B	5.55B
Stockholders Equity	2.19B	2.05B	1.34B	2.14B	2.00B
Cash Flow
Free Cash Flow	326.65M	268.82M	416.95M	309.79M	160.46M
Operating Cash Flow	353.36M	294.27M	449.19M	326.96M	194.36M
Investing Cash Flow	134.17M	-327.82M	-124.40M	-207.94M	-54.33M
Financing Cash Flow	-490.78M	13.93M	-142.69M	-134.36M	-39.45M

Coface SA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 16.58
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:COFA, the sentiment is Positive. The current price of 16.58 is above the 20-day moving average (MA) of 16.29, above the 50-day MA of 16.23, and above the 200-day MA of 14.83, indicating a neutral trend. The MACD of 0.05 indicates Positive momentum. The RSI at 48.70 is Neutral, neither overbought nor oversold. The STOCH value of 17.22 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FR:COFA.

Coface SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
COFA	80 Outperform	€2.42B	9.72	11.71%	8.61%	2.45%	2.67%
Sector *	61 Neutral	C$14.80B	6.52	22.27%	5.47%	30.07%	-22.51%
0RDX	―	€14.45B	11.15	11.17%	6.02%	―	―
0IT3	―	€5.09B	617.83	0.17%	6.39%	―	―
7TI	―	€3.54B	22.76	4.85%	3.85%	―	―
ALEUA	―	€9.05M	―		―	―	―
FMONC	―	€2.22B	235.45		0.24%	―	―