| Valuation method | Value, € | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 29.04 | 88 |
| Intrinsic value (DCF) | 30.68 | 99 |
| Graham-Dodd Method | 2.86 | -81 |
| Graham Formula | 19.23 | 25 |
Coface SA (COFA.PA) is a leading global provider of credit insurance and risk management solutions, headquartered in Bois-Colombes, France. Founded in 1946, the company specializes in protecting businesses against trade receivables defaults, offering credit insurance, single-risk insurance, business information services, and debt collection solutions. Coface serves a diverse clientele, including microenterprises, SMEs, mid-market companies, and multinational corporations across Western Europe, Northern Europe, Central and Eastern Europe, the Mediterranean and Africa, North America, Latin America, and the Asia-Pacific. The company’s integrated credit management platform, ICON, provides real-time business intelligence to help clients mitigate financial risks. Operating in the reinsurance sector under Financial Services, Coface plays a critical role in facilitating global trade by ensuring liquidity and financial stability for businesses. With a market capitalization of €2.39 billion, Coface is a key player in the credit insurance industry, leveraging its extensive regional expertise and digital tools to maintain a competitive edge.
Coface SA presents a stable investment opportunity within the credit insurance sector, supported by its diversified geographic footprint and strong market position. The company reported €1.65 billion in revenue and €261 million in net income for the latest fiscal period, with a diluted EPS of €1.75. Its operating cash flow of €353 million underscores solid liquidity, though its total debt of €1.79 billion warrants monitoring. A dividend yield of €1.4 per share adds appeal for income-focused investors. The stock’s beta of 0.729 suggests lower volatility relative to the broader market, making it a defensive play in uncertain economic climates. However, exposure to global trade fluctuations and credit risk cycles could pose challenges. Investors should weigh Coface’s resilience in credit risk management against macroeconomic headwinds affecting client solvency.
Coface SA holds a competitive advantage through its specialized focus on credit insurance and integrated risk management solutions. Unlike broader reinsurance players, Coface’s niche expertise allows for deep client relationships and tailored underwriting. Its ICON platform enhances value by combining credit insurance with real-time business intelligence, differentiating it from competitors relying solely on traditional insurance models. Geographically, Coface benefits from a balanced presence in both mature (Western Europe) and emerging markets (Africa, Latin America), reducing dependency on any single region. However, the company faces intense competition from larger insurers with greater capital reserves and broader product suites. Pricing pressure in commoditized credit insurance products could erode margins, while digital-first entrants may disrupt its business information segment. Coface’s ability to cross-sell services (e.g., factoring, surety bonds) strengthens client retention but requires continuous innovation to counter rivals’ technological advancements. Its moderate leverage (debt-to-equity of ~0.75) provides flexibility but limits aggressive expansion compared to cash-rich peers.