Coface SA 💼
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 “Coface’s capitalization as very strong and supportive of ratings, which we expect to remain the case in 2021”.
- 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.
What is my position?
I bought shares at a unit price of 6,313€. Currently, share value is 8,59€, I'm up 36% and holding waiting for juicy dividends (note that the company opted for a dividend cut this year).
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.