๐Ÿ› Stock pick: Coface

Coface SA ๐Ÿ’ผ

Coface provides credit insurance products and related services for all kinds of enterprises. It offers credit insurance products to protect companies against default on the payment of trade receivables.

Why did I choose to invest in Coface?

  • Coface is in the insurance business ie: the business of never losing money.
  • Fitch continues to view โ€œCofaceโ€™s capitalization as very strong and supportive of ratings, which we expect to remain the case in 2021โ€.
  • The Group Solvency ratio as of 30 June 2020 is above the target range.
  • Coface launched a share buyback program, it translates its confidence in the strength of its balance sheet.
  • Coface is a dividend-paying stock with an interesting historical dividend yield and a payout ratio inferior to 100%.
  • Coface has rapidly and proactively adapted its operations to the coronavirus crisis.
  • Coface is pretty cheap as the market expects an impact on 2020 results caused by a significant increase in claims declarations.
  • The CEO recently bought 2400 shares.
One of the two shares batch, Xavier Durand, Coface's CEO, recently bought.

What is my position?

I bought shares at a unit price of 6,313โ‚ฌ. Currently, share value is 8,59โ‚ฌ, I'm up 36% and holding waiting for juicy dividends (note that the company opted for a dividend cut this year).

Personal finance: lesson 101
Personal finance coverage in formal education ๐Ÿ“š is very low whereas poorpersonal finance hygiene can have a massive impact on your life. Many of my friends have above-average incomes (engineers, consultants,entrepreneurs...) and yet have a history of bad decisions about their personalfinance. โ€ฆ
To know more about my personal finance decision, check out this blog post.

The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a duly licensed professional for investment advice.

Paul-Mehdy M'Rabet

Paul-Mehdy M'Rabet

I help CIO and CDO from global manufacturers and industrial leaders to design ambitious roadmap their teams can actually deliver and I love it! I write about #ai, #data and #finance.