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Price: 243 EUR -0.16% Market Closed

Market Cap: €8.9B

Sofina SA
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Sofina SA
Other Items Peer Comparison

	Other Items	CAGR 3Y	CAGR 5Y	CAGR 10Y
Sofina SA XBRU:SOF	Other Items €82m	CAGR 3-Years N/A	CAGR 5-Years -27%	CAGR 10-Years -9%
Groep Brussel Lambert NV XBRU:GBLB	Other Items €1.1B	CAGR 3-Years -8%	CAGR 5-Years N/A	CAGR 10-Years N/A
Compagnie du Bois Sauvage SA XBRU:COMB	Other Items -€20.7m	CAGR 3-Years N/A	CAGR 5-Years 12%	CAGR 10-Years -10%

Sofina SA
Glance View

Market Cap

8.9B EUR

Industry

Financial Services

Nestled in the heart of Belgium, Sofina SA stands as a testament to the art of astute investment management, quietly wielding influence across a broad spectrum of industries. Founded in the early 20th century, Sofina has evolved from its industrial roots to become a significant player in the global investment arena. The company operates as a diversified investment holding entity, channeling its resources into a mosaic of sectors such as consumer goods, digital services, education, and healthcare. This diversified approach allows Sofina to spread its risks while capitalizing on growth opportunities in various industries, creating a robust portfolio that resonates with consistent returns. Their investment philosophy is marked by a long-term vision, often partnering with entrepreneurial teams at various stages of their business journey, from startups to well-established enterprises. In the complex web of global finance, Sofina generates its income primarily through capital gains and dividends realized from its investments. By nurturing a selective portfolio of stakes—ranging from controlling positions to smaller, strategic shares—Sofina gains financial returns as these companies grow and flourish. Additionally, they often reinvest these profits to further expand their reach and influence, aligning with their strategy of sustainable development. What sets Sofina apart is its ability to leverage its expertise and connections, offering more than just capital to its portfolio companies. Sofina acts as a collaborator, offering strategic guidance and resources that drive innovation and growth, ultimately enhancing the value of its investments. This approach ensures that the company remains at the forefront of the investment landscape, delivering value not only to its portfolio companies but also to its shareholders.

View SOF Analysis

SOF Intrinsic Value

What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

The AI Assistant may sometimes provide inaccurate information.

Make your own investment decisions or consult a licensed financial advisor.

Sofina SA
XBRU:SOF

Sofina SA
Other Items

Sofina SA
Other Items Peer Comparison

Competitors Analysis
Latest Figures & CAGR of Competitors

Sofina SA
Glance View

See Also

What is Sofina SA's Other Items?

Other Items
82m EUR

What is Sofina SA's Other Items growth rate?

Other Items CAGR 10Y
-9%

Company

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Sofina SA XBRU:SOF

Sofina SA Other Items

Sofina SA Other Items Peer Comparison

Competitors Analysis Latest Figures & CAGR of Competitors

Sofina SA Glance View

See Also

What is Sofina SA's Other Items? Other Items 82m EUR

What is Sofina SA's Other Items growth rate? Other Items CAGR 10Y -9%

Company

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Tools

Stocks

Sofina SA
XBRU:SOF

Sofina SA
Other Items

Sofina SA
Other Items Peer Comparison

Competitors Analysis
Latest Figures & CAGR of Competitors

Sofina SA
Glance View

What is Sofina SA's Other Items?

Other Items
82m EUR

What is Sofina SA's Other Items growth rate?

Other Items CAGR 10Y
-9%