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1. Company Snapshot

1.a. Company Description

Compagnie Financière Tradition SA operates as an interdealer broker of financial and non-financial products worldwide.It provides capital market products, including basis swaps, credit and currency derivatives, inflation products, Latin American derivatives, non-deliverable swaps, overnight index swaps, short dates, and Turkish fixed income and money market, as well as interest rate derivatives, options, and swaps.The company also offers energy and commodity products, such as coal, electricity, environmental products, natural gas, oil, precious metals, property derivatives, pulp and paper, refined products, soft commodities, tradition energy, weather, LNG, petroleum and LPG, and renewable energy credits.


In addition, it provides equities comprising cash and preferred equities, equity derivatives, ETFs, institutional cash equities, single-stock options, delta-one products, exotics, post-reorg equities, index variance and equity finance swaps, and dividend swaps; and fixed income products consisting of asset swaps credit, floating rate notes, futures and options, mortgages, repurchase agreements, and securities, as well as corporate, covered, and government bonds.Further, the company offers foreign exchange (FX) products, such as emerging markets, FX listed futures and options, FX options, ParFX, spot and forward FX, and FX exotics; market data products; and money market products, including arbitrage, cash fund management, commercial paper, deposits and certificates of deposits, forward rate agreements, bank bills, federal funds, and short dates.Additionally, it provides private equity, structured products, hedge fund secondaries, real estate secondaries, non-traditional secondaries, and GCC fixed income, as well as information services.


The company was incorporated in 1959 and is based in Lausanne, Switzerland.Compagnie Financière Tradition SA is a subsidiary of Financière Vermeer NV.

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1.b. Last Insights on CFT

Compagnie Financière Tradition SA's recent performance was driven by strong Q4 2024 revenue growth, reported at 8.4% year-over-year. The company's expansion into new markets and geographic regions contributed to this growth, with a notable increase in revenue from Asia and the Americas. The company's ability to attract and retain clients was also a key driver, with its strong brand reputation and commitment to innovation playing a significant role. Additionally, Tradition's strategic investments in technology and digital infrastructure have enhanced its capabilities and competitiveness in the financial markets industry. Tradition also announced a share buyback program, which will reduce the number of outstanding shares and enhance shareholder value. This move is a positive signal to investors and reflects the company's confidence in its future prospects. According to Bloomberg's analyst consensus, Tradition's stock has been upgraded to a "Buy" rating, citing its strong growth prospects and attractive valuation.

1.c. Company Highlights

2. Transcript Summary

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3. NewsRoom

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Growth in Revenue of 9.4% in the Third Quarter; Activity Growth over the First Nine Months, up 11.3%

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.50%)

6. Segments

Currencies and Interest Rates

Expected Growth: 4.5%

Increasing global trade and investment activities drive demand for real-time exchange rates and interest rates, enabling informed investment decisions. Growing adoption of digital platforms and rising need for risk management solutions also contribute to market growth.

Securities and Derivatives

Expected Growth: 4.5%

Growing demand for trading and hedging solutions, increasing complexity in financial markets, and rising need for risk management among financial institutions and corporations drive the growth of Securities and Derivatives segment.

Commodities and Other

Expected Growth: 4.5%

Growing demand for commodities, increasing energy trading activities, and expansion of financial products drive the segment's growth.

7. Detailed Products

Interdealer Broking

Compagnie Financière Tradition SA provides interdealer broking services, facilitating transactions between banks and other financial institutions in the wholesale financial markets.

Energy and Commodities Broking

The company offers broking services for energy and commodities, including oil, natural gas, power, and metals, helping clients to manage price risk and optimize their energy and commodity transactions.

Financial Derivatives Broking

Tradition provides broking services for financial derivatives, including options, futures, and swaps, helping clients to manage risk and optimize their investment portfolios.

Foreign Exchange Broking

The company offers broking services for foreign exchange transactions, helping clients to manage currency risk and optimize their international trade transactions.

Equities Broking

Tradition provides broking services for equities, including cash equities and equity derivatives, helping clients to buy and sell shares and manage their equity portfolios.

Fixed Income Broking

The company offers broking services for fixed income securities, including government bonds, corporate bonds, and other debt instruments, helping clients to manage their fixed income portfolios.

8. Compagnie Financière Tradition SA's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Compagnie Financière Tradition SA is moderate due to the presence of alternative financial institutions and online trading platforms.

Bargaining Power Of Customers

The bargaining power of customers is low for Compagnie Financière Tradition SA as the company operates in a niche market with limited customer switching options.

Bargaining Power Of Suppliers

The bargaining power of suppliers is moderate for Compagnie Financière Tradition SA as the company relies on a few key suppliers for its operations.

Threat Of New Entrants

The threat of new entrants is high for Compagnie Financière Tradition SA due to the relatively low barriers to entry in the financial services industry.

Intensity Of Rivalry

The intensity of rivalry is high for Compagnie Financière Tradition SA due to the presence of several established competitors in the financial services industry.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 35.57%
Debt Cost 4.04%
Equity Weight 64.43%
Equity Cost 4.80%
WACC 4.53%
Leverage 55.21%

11. Quality Control: Compagnie Financière Tradition SA passed 7 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Plus500

A-Score: 8.0/10

Value: 4.9

Growth: 7.4

Quality: 9.6

Yield: 9.4

Momentum: 8.0

Volatility: 8.7

1-Year Total Return ->

Stock-Card
XTB

A-Score: 7.8/10

Value: 5.4

Growth: 9.8

Quality: 9.4

Yield: 10.0

Momentum: 8.0

Volatility: 4.3

1-Year Total Return ->

Stock-Card
VIEL

A-Score: 7.3/10

Value: 6.8

Growth: 7.2

Quality: 6.7

Yield: 6.9

Momentum: 9.5

Volatility: 7.0

1-Year Total Return ->

Stock-Card
ABG Sundal Collier Holding

A-Score: 6.9/10

Value: 6.0

Growth: 3.3

Quality: 7.6

Yield: 10.0

Momentum: 5.0

Volatility: 9.3

1-Year Total Return ->

Stock-Card
Tradition

A-Score: 6.5/10

Value: 3.4

Growth: 5.2

Quality: 7.0

Yield: 5.0

Momentum: 10.0

Volatility: 8.3

1-Year Total Return ->

Stock-Card
Bourse Direct

A-Score: 6.3/10

Value: 6.0

Growth: 8.8

Quality: 7.6

Yield: 5.0

Momentum: 3.0

Volatility: 7.7

1-Year Total Return ->

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

286.0$

Current Price

286$

Potential

-0.00%

Expected Cash-Flows