Intrinsic Value Coheris S.A. (COH.PA)

• Previous Close: €15.30
• Intrinsic Value: €4.72
• Upside potential: -69%

Stock Valuation Context

Business Model And Market Position

Coheris SA operates in the competitive software application sector, specializing in customer relationship management (CRM), customer insight, and analytics solutions. The company serves diverse industries, including insurance, retail, banking, and pharmaceuticals, with tailored CRM tools such as Sales Force CRM and Marketing CRM. Its cloud-based infrastructure and niche offerings like Coheris CRM Nomad and CRM Merch enhance offline sales and merchandising decision-making. As a subsidiary of ChapsVision, Coheris leverages its parent company’s resources to maintain a strong foothold in France while expanding internationally. The company’s focus on sector-specific customization and secure cloud solutions positions it as a reliable partner for mid-market and enterprise clients seeking data-driven customer engagement tools. Despite operating in a crowded CRM market dominated by global players, Coheris differentiates itself through localized expertise and modular, industry-optimized solutions.

Revenue Profitability And Efficiency

In FY 2023, Coheris reported revenue of €14.6 million, with net income reaching €3.0 million, reflecting a healthy net margin of approximately 20.8%. The company generated €4.4 million in operating cash flow, underscoring efficient operations. Notably, capital expenditures were negligible, suggesting a capital-light business model reliant on software scalability and recurring revenue streams.

Earnings Power And Capital Efficiency

Coheris demonstrated robust earnings power, with diluted EPS of €0.54. The absence of significant capex indicates high capital efficiency, as revenue growth is driven by software licensing and services rather than asset-intensive investments. Operating cash flow conversion appears strong, though the modest cash balance (€0.2 million) suggests aggressive working capital management or reinvestment.

Balance Sheet And Financial Health

The company’s financial health is mixed, with total debt of €6.2 million outweighing its cash reserves. However, positive net income and operating cash flow provide liquidity support. The debt level, while notable, appears manageable given consistent profitability and a market capitalization of €45.1 million.

Growth Trends And Dividend Policy

Coheris maintains a conservative dividend policy, distributing €0.08 per share in FY 2023. Growth appears steady but not explosive, with profitability metrics suggesting disciplined cost control. The lack of capex signals reliance on organic growth or strategic acquisitions, possibly funded by operating cash flows.

Valuation And Market Expectations

With a market cap of €45.1 million and a beta of 0.29, Coheris trades as a low-volatility niche player. The P/E ratio, implied by its EPS, suggests modest market expectations, aligning with its small-cap status and specialized focus. Investors likely value its profitability and sector-specific CRM solutions over rapid top-line expansion.

Strategic Advantages And Outlook

Coheris benefits from its parent company’s backing and a focused product suite catering to vertical markets. Challenges include scaling against larger CRM competitors and managing debt. The outlook hinges on sustaining profitability while expanding its cloud offerings and international footprint, leveraging its capital-efficient model.

Sources

Company filings, Euronext Paris disclosures