During the second quarter the Tweedy Browne (Trades, Portfolio) Global Value Fund added 436,730 shares to its stake in SCOR (XPAR:SCR) at an average price of 29.57 euros ($32.75) per share.
The trade had a 0.18% impact on the Tweedy Browne (Trades, Portfolio) Global Value Fund’s portfolio. It now owns 5,998,250 shares in the company.
SCOR has a market cap of 4.84 billion euros, a price-earnings (P/E) ratio of 8.26, an enterprise value of 3.08 billion euros and a price-book (P/B) ratio of 0.76.
SCOR provides life and nonlife reinsurance services. Its strategy is based on a development model driven by three entities: SCOR Global P&C (property and casualty reinsurance), SCOR Global Life (life insurance) and SCOR Global Investments (asset management). It offers coverage against damages to industrial and commercial property, vehicles, ships, life, health and medical insurance as well as personal insurance. The company is based in Paris.
According to GuruFocus, SCOR has a 6/10 financial rating with an Piotroski F-Score of 5 indicating that the company's financial situation is typical for a stable company. SCOR also has a 7 of 10 profitability and growth rating with three-year EPS growth of 24.10% ranking it above 86% of the 42 companies in the Global insurance-Reinsurance industry.
The Tweedy Browne (Trades, Portfolio) Global Value Fund may have added to its stake for the following reasons:
- According to the DCF calculator, SCOR is worth 33.28 euros, but it is currently trading for 25.69 euros. This provides a 22.81% margin of safety.
- SCOR is expanding its operations, which is usually a good sign.
- SCOR has a Peter Lynch fair value of 57.37 euros, which is based upon the average growth rate for earnings per share over the previous five years.
- SCOR has increased its revenue per share by 13.10% over the previous five years, which is a good sign.
- SCOR has 46 years of experience within its industry. It is one of the largest reinsurance, asset management companies in the world.
Below is a Peter Lynch Chart that shows that Scor is trading below its intrinsic value
Cheers to your investment success.
Disclosure:Â Author does not own any shares of this company.
Start a free seven-day trial of Premium Membership to GuruFocus.
