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EDENRED SA (FR:EDEN)
:EDEN

EDENRED (EDEN) AI Stock Analysis

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EDENRED

(LSE:EDEN)

Rating:69Neutral
Price Target:
€29.00
▲(5.96%Upside)
EDENRED's overall score is primarily driven by its strong financial performance and attractive valuation. However, the technical analysis suggests caution due to negative momentum indicators. Addressing balance sheet weaknesses could improve the company's financial stability.
Positive Factors
Cost Efficiency
Topline headwinds are likely offset by cost efficiency at the EBITDA level.
Financial Performance
Edenred had a solid Q1 print with +7.1% LFL operating revenue growth, in line with consensus expectations.
Growth Drivers
Beyond Food and Beyond Fuel were key drivers of growth, with Beyond Food growing by 16.9% LFL and Beyond Fuel achieving double-digit growth.
Negative Factors
Leadership Uncertainty
The recent departure of the long-term CFO adds to the uncertainty.
Market Conditions
The current macro backdrop and different company-specific headwinds limit confidence in a sustainable growth acceleration.
Regulatory Challenges
In the second half of the year, the company faces headwinds from the Italian commission cap regulation.

EDENRED (EDEN) vs. iShares MSCI France ETF (EWQ)

EDENRED Business Overview & Revenue Model

Company DescriptionEdenred (EDEN) is a global leader in payment solutions for the working world, operating in over 46 countries. The company provides a comprehensive range of solutions, including employee benefits, fleet and mobility solutions, and complementary solutions such as corporate payment services. With its digital innovation and proprietary technology, Edenred aims to enhance the efficiency and performance of organizations while improving the purchasing power and quality of life for employees.
How the Company Makes MoneyEdenred generates revenue through a diversified business model that centers around three main areas: employee benefits, fleet and mobility solutions, and complementary solutions. In employee benefits, the company makes money by offering services such as meal vouchers, food cards, and wellness programs, where it charges fees to employers for managing these benefits. In the fleet and mobility sector, Edenred provides fuel cards and toll solutions to companies, earning revenue from transaction fees and service charges. Additionally, under complementary solutions, the company offers corporate payment services and gift cards, further diversifying its income streams. Strategic partnerships with financial institutions, retailers, and service providers play a crucial role in expanding Edenred's market reach and enhancing its service offerings, thereby contributing to its earnings.

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
78
Positive
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
55
Neutral
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
65
Positive
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue2.86B2.31B1.94B1.58B1.42B
Gross Profit1.71B952.00M1.05B823.00M710.00M
EBITDA1.17B875.00M751.00M628.00M583.00M
Net Income507.00M267.00M386.00M313.00M238.00M
Balance Sheet
Total Assets13.27B13.29B11.17B10.32B9.43B
Cash, Cash Equivalents and Short-Term Investments3.03B3.35B5.14B5.11B4.72B
Total Debt4.54B4.20B3.04B3.48B3.30B
Total Liabilities14.07B13.86B11.79B11.19B10.56B
Stockholders Equity-908.00M-679.00M-718.00M-953.00M-1.23B
Cash Flow
Free Cash Flow812.00M862.00M587.00M269.00M1.38B
Operating Cash Flow1.03B1.05B738.00M383.00M1.49B
Investing Cash Flow-704.00M-1.23B-211.00M-180.00M-294.00M
Financing Cash Flow-39.00M147.00M-828.00M-57.00M-286.00M

EDENRED Technical Analysis

Technical Analysis Sentiment
Positive
Last Price27.37
Price Trends
50DMA
25.96
Positive
100DMA
27.78
Negative
200DMA
28.94
Negative
Market Momentum
MACD
0.34
Negative
RSI
63.79
Neutral
STOCH
67.12
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:EDEN, the sentiment is Positive. The current price of 27.37 is above the 20-day moving average (MA) of 25.85, above the 50-day MA of 25.96, and below the 200-day MA of 28.94, indicating a neutral trend. The MACD of 0.34 indicates Negative momentum. The RSI at 63.79 is Neutral, neither overbought nor oversold. The STOCH value of 67.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FR:EDEN.

EDENRED Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
69
Neutral
€6.43B13.00
4.50%12.89%92.80%
65
Neutral
$27.02B15.16-4.24%3.17%1.01%1.94%
FRSW
65
Neutral
€7.59B11.2116.07%5.11%6.71%141.19%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FR:EDEN
EDENRED
27.37
-10.83
-28.35%
FR:SW
Sodexo SA
52.00
-19.45
-27.22%

EDENRED Corporate Events

Edenred Proposes Board Changes to Enhance Strategic Expertise
Mar 26, 2025

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
Mar 26, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 27, 2025