Stock Analysis & Valuation Coheris S.A. (COH.PA)

• Previous Close: €15.30
• Sector Valuation Confidence Level: Low

Valuation method	Value, €	Upside, %
Artificial intelligence (AI)	25.37	66
Intrinsic value (DCF)	4.72	-69
Graham-Dodd Method	4.52	-70
Graham Formula	6.20	-59

Strategic Investment Analysis

Company Overview

Coheris SA is a France-based software company specializing in customer relationship management (CRM), customer insight, and analytics solutions. Founded in 1994 and headquartered in Suresnes, Coheris offers a suite of CRM tools, including CRM Customer Service, Sales Force CRM, and Marketing CRM, designed to optimize sales, marketing, and customer service operations. The company also provides cloud-based solutions and specialized tools like Coheris CRM Nomad for offline sales management and Coheris CRM Merch for merchandising support. Serving diverse industries such as insurance, retail, banking, cosmetics, and public sectors, Coheris leverages data-driven insights to enhance customer engagement and operational efficiency. As a subsidiary of ChapsVision, Coheris operates primarily in France but also extends its reach internationally. With a market cap of approximately €45.1 million, the company plays a niche but strategic role in the competitive CRM software market.

Investment Summary

Coheris SA presents a mixed investment profile. On the positive side, the company reported a net income of €3.05 million in FY 2023, with diluted EPS of €0.54 and a dividend payout of €0.08 per share, reflecting profitability and shareholder returns. Its operating cash flow of €4.44 million suggests solid operational efficiency. However, the company's modest market cap (~€45.1M) and limited international presence may constrain growth potential compared to larger CRM players. The low beta (0.289) indicates lower volatility relative to the market, which could appeal to risk-averse investors. Key risks include reliance on the French market, competition from global CRM giants, and a relatively high debt-to-equity position (total debt of €6.16M vs. cash reserves of €188K). Investors should weigh its niche expertise against scalability challenges.

Competitive Analysis

Coheris SA operates in the highly competitive CRM software market, dominated by global giants like Salesforce and Microsoft. Its competitive advantage lies in its deep specialization in the French market and tailored solutions for industries like insurance, retail, and banking. Unlike broader CRM platforms, Coheris focuses on specific use cases such as offline sales management (CRM Nomad) and merchandising (CRM Merch), which may resonate with niche clients. However, its small scale and limited cloud infrastructure compared to competitors like Salesforce or HubSpot could hinder its ability to attract large enterprises. The company’s subsidiary status under ChapsVision provides potential synergies but may also limit autonomy in strategic decisions. While Coheris’s profitability and cash flow generation are strengths, its growth prospects depend on expanding beyond France and enhancing its cloud offerings to compete with SaaS leaders. The lack of significant R&D or capex (€0 in FY 2023) raises questions about its ability to innovate at the pace of larger rivals.

Major Competitors

• Salesforce Inc. (CRM): Salesforce is the global leader in CRM software, offering a comprehensive suite of cloud-based solutions for sales, service, marketing, and analytics. Its strengths include massive scale, AI-driven tools (Einstein AI), and a robust ecosystem (AppExchange). However, its broad focus may lack the industry-specific customization that Coheris provides for French markets. Salesforce’s high pricing could also make Coheris a cost-effective alternative for smaller enterprises.
• SAP SE (SAP): SAP offers CRM solutions as part of its broader enterprise software suite, with strengths in integration (e.g., with ERP systems) and global reach. However, its complexity and implementation costs may deter SMEs, where Coheris could compete with simpler, localized solutions. SAP’s focus on large multinationals contrasts with Coheris’s niche in mid-market French firms.
• HubSpot Inc. (HUBS): HubSpot specializes in inbound marketing and sales CRM for SMBs, with user-friendly tools and strong growth in cloud adoption. While HubSpot’s platform is more modern and scalable than Coheris’s, it lacks the latter’s deep vertical expertise in industries like French insurance or retail. Coheris may retain clients preferring localized support and compliance.
• Oracle Corporation (ORCL): Oracle’s CRM solutions (part of its CX suite) compete with Coheris in enterprise settings, particularly in data-driven analytics. Oracle’s strengths lie in its database integration and AI capabilities, but its high cost and complexity may leave room for Coheris in cost-sensitive segments. Coheris’s focus on France could also provide a regional edge.
• Dassault Systèmes SE (DSY.PA): Dassault Systèmes offers CRM-like tools via its 3DEXPERIENCE platform, targeting industries like manufacturing and life sciences. While not a direct CRM competitor, its overlap in analytics and French market presence could pressure Coheris in certain sectors. Dassault’s R&D resources far exceed Coheris’s, but its focus on 3D modeling differs from Coheris’s CRM specialization.