Coface SA (COFA) AI Stock Analysis

• Market Cap: €2.27B
• Dividend Yield: 9.08%
• Average Volume (3M): 169.90K
• Price to Earnings (P/E): 9.5
• Beta (1Y): 0.74
• Revenue Growth: 2.54%
• EPS Growth: -4.42%
• Country: FR
• Employees: 4,960
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Reinsurance
• EPS (TTM): 0.42
• Shares Outstanding: 150,179,800
• 10 Day Avg. Volume: 179,066
• 30 Day Avg. Volume: 169,903
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: €19.90
• Price Target Upside: 29.05% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 70 Outperform
• Price Target: €17.50 ▲(13.49% Upside)

Coface SA's stock score is primarily driven by its strong financial performance and attractive valuation. The company's profitability and leverage improvements are significant strengths, while the high dividend yield and low P/E ratio enhance its appeal. However, technical indicators suggest a lack of strong momentum, and challenges in revenue growth and cash flow need to be addressed.

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 generates revenue primarily through the sale of credit insurance policies and related services. The company earns premiums from businesses that purchase insurance to safeguard against the risk of non-payment by their customers. Additionally, Coface provides services such as credit risk assessments and debt collection, which also contribute to its revenue streams. Significant partnerships with banks and financial institutions enhance its offerings, allowing Coface to provide integrated solutions that combine credit insurance with financing options. Furthermore, the company's ability to leverage its extensive database of credit information and analytics aids in attracting new clients and retaining existing ones, thereby supporting its overall earnings.

Coface SA Financial Statement Overview

Summary

Coface SA demonstrates strong profitability with high gross profit margins and stable EBIT and EBITDA margins. The company has improved its leverage position, reducing the debt-to-equity ratio. However, challenges remain with declining revenue growth and free cash flow, which could impact future liquidity and growth potential.

Income Statement

Coface SA shows strong gross profit margins consistently above 100%, indicating efficient cost management. However, the net profit margin has slightly decreased in the TTM period to 14.78% from 15.83% in the previous year. Revenue growth has been negative in the TTM period, which is a concern, but the company has maintained a stable EBIT and EBITDA margin, demonstrating operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.80 in the TTM period from 1.09 in the previous year, indicating better leverage management. Return on equity remains stable at around 11.94%, showing consistent profitability. The equity ratio is not explicitly calculated, but the improvement in leverage suggests a positive trend in equity management.

Cash Flow

Coface SA's free cash flow has decreased by 19.31% in the TTM period, which is a concern. However, the free cash flow to net income ratio remains strong at 88.25%, indicating good cash conversion. Operating cash flow has decreased significantly, impacting the operating cash flow to net income ratio, which is currently zero, suggesting potential liquidity issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.80B	1.65B	1.60B	242.51M	1.28B	1.12B
Gross Profit	1.75B	1.45B	1.54B	242.51M	1.28B	1.12B
EBITDA	417.24M	446.74M	406.19M	380.41M	350.29M	184.92M
Net Income	243.01M	261.07M	240.50M	240.44M	223.82M	82.90M
Balance Sheet
Total Assets	8.07B	8.08B	7.90B	8.45B	8.04B	7.55B
Cash, Cash Equivalents and Short-Term Investments	3.11B	3.22B	2.86B	553.79M	3.48B	3.30B
Total Debt	1.80B	2.39B	659.67M	1.74B	2.79B	2.44B
Total Liabilities	5.97B	5.89B	5.85B	6.49B	5.90B	5.55B
Stockholders Equity	2.10B	2.19B	2.05B	1.34B	2.14B	2.00B
Cash Flow
Free Cash Flow	140.10M	326.65M	268.82M	416.95M	309.79M	160.46M
Operating Cash Flow	167.49M	353.36M	294.27M	449.19M	326.96M	194.36M
Investing Cash Flow	68.62M	134.17M	-327.82M	-124.40M	-207.94M	-54.33M
Financing Cash Flow	-251.36M	-490.78M	13.93M	-142.69M	-134.36M	-39.45M

Coface SA Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 15.42
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:COFA, the sentiment is Negative. The current price of 15.42 is below the 20-day moving average (MA) of 15.74, below the 50-day MA of 15.77, and below the 200-day MA of 15.74, indicating a bearish trend. The MACD of -0.11 indicates Positive momentum. The RSI at 41.90 is Neutral, neither overbought nor oversold. The STOCH value of 41.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FR:COFA.

Coface SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
COFA	―	€2.27B	9.49	11.85%	9.08%	2.54%	-4.42%
Sector *	―	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
SCR	―	€5.35B	9.88	12.58%	6.02%	-2.64%	175.41%
TKO	―	€3.17B	17.36	5.94%	4.42%	12.44%	12.15%
AMUN	―	€13.58B	8.09	14.33%	6.69%	18.42%	37.83%