(COFA) Coface - Ratings and Ratios

Coface SA is a global provider of credit insurance and related financial services, catering to a diverse range of businesses from microenterprises to international corporations. The companys comprehensive suite of products includes credit insurance, designed to shield businesses from the risk of non-payment of trade receivables, as well as integrated credit management solutions that encompass single risk insurance, business information, and debt collection services. Additionally, Coface offers factoring services, various types of surety and legal bonds, and payment guarantees to help businesses manage their financial risks effectively.

With a presence in multiple regions including Western Europe, Northern Europe, Central and Eastern Europe, the Mediterranean and Africa, North America, Latin America, and the Asia-Pacific, Coface leverages its global footprint to provide localized credit insurance and financial services. The companys iCON portal and Universal Risk Business Assessment (URBA) information services platform are key tools in its arsenal, offering advanced credit risk management and corporate risk monitoring capabilities to its clients. Founded in 1946 and headquartered in Bois-Colombes, France, Coface has established itself as a venerable institution in the credit insurance industry.

From a technical analysis perspective, COFAs stock price is currently at €16.39, slightly above its 20-day Simple Moving Average (SMA) of €16.29 and significantly above its 200-day SMA of €14.49, indicating a positive short to medium-term trend. The Average True Range (ATR) stands at €0.37, or 2.28% of the current price, suggesting moderate volatility. Given the stocks position relative to its SMAs and its 52-week range (€11.85 - €17.06), theres an indication of a potential upward trajectory if the stock can maintain its position above key support levels.

Fundamentally, Coface SA has a market capitalization of €2451.15 million and a Price-to-Earnings (P/E) ratio of 9.65, suggesting the stock might be undervalued relative to its earnings. The Return on Equity (RoE) stands at 12.40%, indicating a decent level of profitability. Combining these fundamental indicators with the technical analysis, a forecast for COFA could be cautiously optimistic. If Coface continues to demonstrate solid financial performance and the global demand for credit insurance remains robust, the stock could potentially test the upper end of its 52-week range or even surpass it, driven by its strong fundamentals and favorable technical indicators.

Based on the available data, a potential forecast could see COFAs stock price moving towards €18.00 in the next 6-12 months, assuming the company maintains its current financial performance and the overall market conditions remain favorable. This projection is grounded in the stocks technical indicators and its fundamental data, suggesting a potential upside of around 10% from current levels.