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Compagnie Financière Tradition S.A.

CFT.SW
69
Financial - Capital Markets · Financial Services
Also trades as: 0QL7.L
Price
CHF 270.00
-3.50 (-1.28%)
Market Cap
CHF 2.06B
Exchange
SIX Swiss Exchange
Winston Score
69
Winston is curious
A decent business — some strong pillars, some weaker.
Data as of Aug 10, 2026 · filings through Dec 31, 2025

Share count rising — dilution

+4.3% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 7.7M (2021) → 8.0M (2025)

Compagnie Financière Tradition is a Swiss company that acts as a middleman in financial markets. It helps banks, hedge funds, and other large financial institutions buy and sell things like bonds, currencies, interest rate contracts, and commodities. This type of business is called an interdealer broker, and Tradition is one of the largest in the world.

The company earns money by charging a small fee or commission on each trade it helps arrange. It operates across more than 30 countries, with a strong presence in Europe, Asia, and the Americas, giving it a truly global footprint. Its main competitive advantage is its network of experienced brokers and long-standing relationships with major financial institutions, which are hard for new competitors to replicate quickly. The biggest risk the business faces is the ongoing shift toward electronic trading platforms, which can reduce the need for human brokers and put pressure on the fees Tradition can charge over time.

Winston Score History

Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+3.8% YoY

YoY Growth Rate

Slow revenue growth

EPS Growth

+16.7% YoY

YoY Growth Rate

Steady EPS growth

R&D Spend

$0/ year

0.0% of revenue

Below sector average (7%)

Research and development spending

Insider Activity

81.4%ownership

Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

$496M cash & investments

Quarterly Free Cash Flow

→ Burn rate stable

Company generates more cash than it spends — no dilution risk from fundraising

Growth context

Compagnie Financière Tradition S.A. is growing revenue at 4% year-over-year. The Winston Score measures business quality today — these growth metrics show what could matter tomorrow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

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Quality

Gross Margin
98.0%
Premium pricing power — 98.0% gross margin
Operating Margin
13.6%
Healthy — 13.6% operating margin
ROCE
10.7%
Below par — 10.7% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales YoY
+5.8%
Slow sales growth (+5.8% YoY)
EPS YoY
+15.6%
Earnings growing fast (+15.6% YoY)

Healthy double-digit earnings growth — what compounders look like.

EPS Consistency
8/8 quarters
Every recent quarter grew earnings vs last year

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Cash Flow

Cash Conversion
87%
Modest — 87% of profit becomes cash
FCF Margin
9.3%
Modest free cash flow (9.3%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

Debt / Equity
0.39
Conservative — low debt load (0.39)
Interest Cover
33.88x
Comfortably covers interest (33.9x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

P/E Ratio (TTM)
15.5x
Fair value — P/E 15.5

P/E in the normal range. Price is roughly $15 for every $1 of yearly profit.

P/E vs Forward
+0.7
GROWING
Earnings roughly flat

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Dividends

Dividend Yield
2.78%
Moderate income — 2.78% yield

Standard yield zone for stable dividend payers. A meaningful piece of total return.

Dividend Growth
+28.7%
Dividend growing fast (28.7% YoY)

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