EDENRED (EDEN) AI Stock Analysis

• Market Cap: €6.43B
• Dividend Yield: 4.5%
• Average Volume (3M): 674.71K
• Price to Earnings (P/E): 13.0
• Beta (1Y): 0.78
• Revenue Growth: 12.89%
• EPS Growth: 92.80%
• Country: FR
• Employees: 12,320
• Sector: Consumer Defensive
• Sector Strength: 57
• Industry: Financial - Credit Services
• EPS (TTM): 1.23
• Shares Outstanding: 239,891,070
• 10 Day Avg. Volume: 804,163
• 30 Day Avg. Volume: 674,710
• 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: €40.56
• Price Target Upside: 48.19% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

• Rating: 69 Neutral
• 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 Business Overview & Revenue Model

Company Description

Edenred (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 Money

Edenred 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

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
EBITDA	1.17B	875.00M	751.00M	628.00M	583.00M
Net Income	507.00M	267.00M	386.00M	313.00M	238.00M
Balance Sheet
Total Assets	13.27B	13.29B	11.17B	10.32B	9.43B
Cash, Cash Equivalents and Short-Term Investments	3.03B	3.35B	5.14B	5.11B	4.72B
Total Debt	4.54B	4.20B	3.04B	3.48B	3.30B
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: Positive
• Last Price: 27.37
• 50DMA: Positive
• 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 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EDEN	69 Neutral	€6.43B	13.00		4.50%	12.89%	92.80%
Sector *	65 Neutral	$27.02B	15.16	-4.24%	3.17%	1.01%	1.94%
SW	65 Neutral	€7.59B	11.21	16.07%	5.11%	6.71%	141.19%

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.