| Valuation method | Value, CHF | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 195.98 | -33 |
| Intrinsic value (DCF) | 114.42 | -61 |
| Graham-Dodd Method | 43.27 | -85 |
| Graham Formula | 235.30 | -20 |
Compagnie Financière Tradition SA (CFT.SW) is a leading global interdealer broker specializing in financial and non-financial products, headquartered in Lausanne, Switzerland. Operating since 1959, the company provides a comprehensive suite of brokerage services across capital markets, energy and commodities, equities, fixed income, foreign exchange (FX), and money markets. CFT.SW serves institutional clients with products such as interest rate derivatives, credit derivatives, FX options, and commodity derivatives, positioning itself as a key player in the over-the-counter (OTC) markets. As a subsidiary of Financière Vermeer NV, the company leverages its deep market expertise and global presence to facilitate liquidity and price discovery in niche and emerging markets. With a focus on innovation, CFT.SW also offers structured products, private equity secondaries, and market data services, catering to the evolving needs of hedge funds, banks, and asset managers. Its diversified product portfolio and strong regulatory compliance make it a trusted intermediary in the financial services sector.
Compagnie Financière Tradition SA presents a stable investment opportunity with its niche focus on interdealer brokerage and diversified revenue streams. The company’s low beta (0.165) suggests resilience to market volatility, while its CHF 1.82B market cap reflects steady investor confidence. With FY revenue of CHF 1.05B and net income of CHF 115.6M, CFT.SW demonstrates profitability, supported by a diluted EPS of CHF 14.4 and a dividend yield of ~4.7% (CHF 6.75 per share). However, its capital-intensive model and reliance on OTC markets expose it to regulatory risks and margin pressures. The firm’s strong cash position (CHF 394.5M) and moderate debt (CHF 350.3M) provide financial flexibility, but competition from electronic trading platforms could challenge its traditional brokerage dominance.
Compagnie Financière Tradition SA competes in the interdealer brokerage space by emphasizing human-driven expertise in complex, less-liquid markets where electronic platforms struggle to replicate its value. Its competitive advantage lies in its deep relationships with institutional clients and ability to broker bespoke derivatives and emerging market products. Unlike pure electronic brokers, CFT.SW thrives in opaque markets (e.g., non-deliverable swaps, energy derivatives) where negotiation and trust are critical. However, its traditional model faces pressure from low-cost digital rivals like TP ICAP’s Fusion and BGC Partners’ hybrid platforms. CFT.SW mitigates this by diversifying into data services and private equity secondaries, though its slower adoption of automation compared to peers may limit scalability. Its Swiss regulatory base enhances credibility but also imposes higher compliance costs. The firm’s subsidiary structure under Financière Vermeer NV provides stability but may limit agility in M&A opportunities compared to publicly traded competitors.