EDENRED (EDEN) AI Stock Analysis

• Market Cap: €6.49B
• Dividend Yield: 4.07%
• Average Volume (3M): 750.52K
• Price to Earnings (P/E): 13.1
• Beta (1Y): 0.71
• Revenue Growth: 12.89%
• EPS Growth: 92.80%
• Country: FR
• Employees: 12,320
• Sector: Consumer Defensive
• Sector Strength: 73
• Industry: Financial - Credit Services
• EPS (TTM): 1.23
• Shares Outstanding: 239,891,070
• 10 Day Avg. Volume: 642,175
• 30 Day Avg. Volume: 750,525
• PEG Ratio: 0.18
• Price to Book (P/B): -7.22
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.71
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €38.97
• Price Target Upside: 43.69% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 61 Neutral
• Price Target: ―

EDENRED's strong financial performance, with notable revenue and profit growth, is offset by concerns over its balance sheet, particularly negative equity. The technical analysis suggests bearish sentiment, with the stock trading below key moving averages. However, the valuation remains attractive due to its reasonable P/E ratio and solid dividend yield. Strengthening the balance sheet could significantly improve the company's financial outlook.

Positive Factors

Financial Performance

Edenred had a solid Q1 print with +7.1% LFL operating revenue growth, in line with consensus expectations.

Mergers and Acquisitions

Mergers and acquisitions and the associated cross-selling remain key drivers for the company.

Negative Factors

Macroeconomic Impact

The current macro backdrop and different company-specific headwinds limit confidence in a sustainable growth acceleration.

Regulatory Challenges

Regulatory headwinds, such as those in Italy, are partly responsible for the uncertainty in growth.

Revenue Growth Challenges

Total revenue growth was slightly below company consensus and analyst expectations.

EDENRED Business Overview & Revenue Model

Company Description

Edenred SA provides transactional solutions for companies, employees, and merchants worldwide. It offers employee benefit solutions, including Ticket Restaurant, Ticket Alimentación, Ticket Transporte, Ticket Cultura, and Ticket CESU; and fleet and mobility solutions, such as Ticket Log, Ticket Car, and UTA. The company also provides complementary solutions comprising corporate payment solutions that enhance the management of inter-company cash flows made through checks or transfers; PrePay solutions; incentives and rewards programs, including Ticket Compliments and Ticket Kadéos; and public social programs. Its solutions are used in various areas, such as meals, food, fuel, business travel, childcare, shopping, transportation, agriculture, education, healthcare, training, and human services. The company was founded in 1954 and is headquartered in Issy-les-Moulineaux, France.

How the Company Makes Money

Edenred makes money by offering a range of prepaid corporate services and solutions that generate revenue through transaction fees, commissions, and service charges. Key revenue streams include employee benefits like meal vouchers and gift cards, where Edenred charges businesses a fee for issuing and managing these products. Additionally, in the fleet and mobility sector, they provide solutions such as fuel cards and toll payment services, earning revenue from transaction fees and partnerships with service providers. Edenred also benefits from float revenue, which is the interest earned on the outstanding balances of prepaid card accounts. Strategic partnerships with financial institutions, retailers, and service providers amplify their reach and profitability, allowing Edenred to leverage its extensive network and digital platforms to drive growth and innovation in payment solutions.

EDENRED Financial Statement Overview

Summary

EDENRED shows strong revenue and profit growth, marked by a significant increase in revenue and healthy profit margins. However, concerns arise from the negative stockholders' equity and potential financial instability, despite efforts to improve the balance sheet.

Income Statement

EDENRED has demonstrated strong revenue growth with a consistent increase in total revenue over the past years, notably a 23.6% increase from 2023 to 2024. The company maintains healthy gross and net profit margins, with a TTM gross profit margin of 59.9% and a net profit margin of 17.7%. EBIT and EBITDA margins are also robust, reflecting operational efficiency. However, the net income growth has been uneven, presenting potential volatility.

Balance Sheet

EDENRED's balance sheet is concerning due to the negative stockholders' equity, which suggests potential financial instability. The debt-to-equity ratio is not meaningful due to negative equity. Despite this, the company has ample cash reserves, and its equity ratio is improving over time, indicating efforts to stabilize financial leverage.

Cash Flow

The cash flow statement shows positive trends with a steady increase in free cash flow, growing by 38.2% in 2023. The operating cash flow to net income ratio is strong, indicating efficient cash conversion. However, fluctuations in investing and financing cash flows suggest potential risks in capital allocation and financial strategies.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
2.86B	2.31B	1.94B	1.58B	1.42B
	Gross Profit
1.71B	952.00M	1.05B	823.00M	710.00M
	EBIT
1.04B	706.00M	602.00M	496.00M	417.00M
	EBITDA
1.17B	875.00M	751.00M	628.00M	583.00M
	Net Income Common Stockholders
507.00M	267.00M	386.00M	313.00M	238.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.03B	3.35B	5.14B	5.11B	4.72B
	Total Assets
13.27B	13.29B	11.17B	10.32B	9.43B
	Total Debt
4.54B	4.20B	3.04B	3.48B	3.30B
	Net Debt
2.90B	2.85B	-562.00M	-437.00M	-407.00M
	Total Liabilities
14.07B	13.86B	11.79B	11.19B	10.56B
	Stockholders Equity
-908.00M	-679.00M	-718.00M	-953.00M	-1.23B
Cash Flow		Free Cash Flow
812.00M	862.00M	587.00M	269.00M	1.38B
	Operating Cash Flow
1.03B	1.05B	738.00M	383.00M	1.49B
	Investing Cash Flow
-704.00M	-1.23B	-211.00M	-180.00M	-294.00M
	Financing Cash Flow
-39.00M	147.00M	-828.00M	-57.00M	-286.00M

EDENRED Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 27.12
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:EDEN, the sentiment is Negative. The current price of 27.12 is below the 20-day moving average (MA) of 27.43, below the 50-day MA of 29.56, and below the 200-day MA of 31.97, indicating a bearish trend. The MACD of -0.66 indicates Negative momentum. The RSI at 40.08 is Neutral, neither overbought nor oversold. The STOCH value of 23.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FR:EDEN.

EDENRED Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	64 Neutral	$8.82B	14.56	4.78%	173.92%	3.50%	2.20%
EDEN	61 Neutral	€6.49B	13.12		4.07%	12.89%	92.80%
0RUG		€13.75B	31.63	10.86%	0.73%	―	―
0NPH		€9.76B	13.52	6.47%	5.87%	―	―
0HAU		€239.28B	18.94	19.53%	2.73%	―	―
0J3F		€8.60B	12.71	16.07%	4.45%	―	―
0IIF		€2.90B	7.66	2.26%	1.37%	―	―

EDENRED Corporate Events

Edenred Proposes Board Changes to Enhance Strategic Expertise

Edenred has announced proposed appointments and renewals within its Board of Directors, to be confirmed at the upcoming General Meeting on May 7, 2025. The company aims to maintain a balanced board composition in terms of gender and international experience, with the renewal of several directors and the appointment of new members bringing expertise in digital, IT, and marketing sectors, which are pivotal for Edenred’s strategic direction.

Edenred Releases 2024 Universal Registration Document

Edenred has released its 2024 Universal Registration Document, which includes the annual financial report, corporate governance report, share buyback program details, and sustainability report. This document’s availability reflects Edenred’s commitment to transparency and regulatory compliance, potentially impacting its market positioning and stakeholder relations.

Edenred Appoints New Executive Vice President Finance

Edenred has appointed Virginie Duperat-Vergne as Executive Vice President Finance, effective June 2, 2025, succeeding Julien Tanguy. Duperat-Vergne, with extensive experience in financial leadership roles, is expected to play a crucial role in steering Edenred’s performance and enhancing operational efficiency. Her appointment is seen as a strategic move to bolster Edenred’s development and market positioning.