EDENRED (EDEN) AI Stock Analysis

• Market Cap: €4.56B
• Dividend Yield: 6.47%
• Average Volume (3M): 1.00M
• Price to Earnings (P/E): 8.7
• Beta (1Y): 1.02
• Revenue Growth: 7.04%
• EPS Growth: 73.35%
• Country: FR
• Employees: 12,320
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 1.36
• Shares Outstanding: 236,974,580
• 10 Day Avg. Volume: 836,801
• 30 Day Avg. Volume: 1,003,546
• PEG Ratio: 1.63
• Price to Book (P/B): -5.51
• Price to Sales (P/S): 1.65
• P/FCF Ratio: 5.01
• 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: €23.17
• Price Target Upside: 19.93% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): 2.1
• Revenue Forecast (FY): €2.91B

• Rating: 68 Neutral
• Price Target: €21.50 ▲(11.28% Upside)
• Action: Reiterated Date: 02/28/26
• Date: Action: Reiterated 02/28/26

The score is driven by solid profitability and consistently positive, growing free cash flow, supported by an attractive valuation (low P/E and high dividend yield). These positives are meaningfully tempered by the weak balance sheet with elevated leverage and negative equity, and only moderately supportive technicals due to the price still being below the 200-day average.

Positive Factors

Consistent cash generation

Consistently positive operating and free cash flow provides durable internal funding for operations, dividends, and strategic investments. Over a 2-6 month horizon this supports capital allocation flexibility, reduces near-term refinancing reliance and underpins earnings quality.

Multi-sided payments platform model

A platform that connects corporate clients, users and merchant networks creates recurring revenue, network effects and high switching costs. This structural model drives predictable transaction volumes and long-term client relationships, supporting durable revenue streams and competitive positioning.

Revenue momentum and improved profitability

Sustained revenue expansion and rising operating margins indicate improving operating leverage and product adoption. These trends enhance earnings durability, support continued reinvestment, and help absorb cyclical shocks across the next several months to a few years.

Negative Factors

Elevated leverage and negative equity

A balance sheet with rising debt and persistent negative equity materially weakens financial flexibility. In adverse conditions the company faces higher refinancing and covenant risk, limiting capacity for strategic moves and increasing vulnerability to macro shocks over the medium term.

Low cash flow coverage of debt

Even with strong absolute free cash flow, low coverage versus debt means interest and principal obligations absorb a meaningful share of cash. This constrains investment, heightens refinancing exposure, and elevates risk if interest costs or credit conditions worsen.

Top-line and margin volatility

Observed swings in revenue and margins signal sensitivity to cyclical or product-specific factors, reducing earnings predictability. That volatility complicates planning, may pressure margins in stress periods, and undermines the stability of free cash flow and returns.

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 generates revenue primarily through transaction fees and service fees associated with its employee benefits programs. The company earns money by providing businesses with digital meal vouchers and other benefits, taking a percentage of each transaction processed. Additionally, EDENRED's partnerships with various merchants and service providers enable it to leverage commission-based revenue models, where it receives a fee for each transaction made using its products. The company also benefits from recurring revenue streams through long-term contracts with corporate clients, which contribute to stable cash flows. Furthermore, strategic alliances and acquisitions enhance EDENRED's market presence and broaden its service offerings, thereby driving growth and profitability.

EDENRED Financial Statement Overview

Summary

Strong operating performance and cash generation (income statement score 82; cash flow score 74) are offset by a materially weak balance sheet (balance sheet score 34) featuring elevated leverage and persistently negative equity, which increases downside risk in stressed conditions.

Income Statement

Revenue expanded strongly from 2021–2025 (with 2025 showing a sharp acceleration), indicating solid business momentum. Profitability is a key strength: gross margin remains high and operating profitability improved in recent years (notably higher operating margin vs. 2023), while net margin is healthy overall. The main weakness is volatility in top-line and margins across periods (including a revenue decline in 2020 and a gross margin step-down in 2025 versus 2024), suggesting results can swing year-to-year.

Balance Sheet

Leverage is elevated, with total debt rising over time and equity remaining negative across all years provided—this reduces financial flexibility and makes the capital structure more fragile in stress scenarios. Total assets have grown, but negative equity also drives negative return on equity and makes debt-to-equity comparisons less meaningful. While the company is clearly profitable, the balance sheet profile is the biggest risk factor in the dataset.

Cash Flow

Cash generation is a clear strength: operating cash flow and free cash flow are consistently positive, and free cash flow meaningfully exceeds prior years by 2025 (strong growth). Free cash flow tracks earnings reasonably well (free cash flow is a large share of net income across the periods shown), supporting quality of profits. A watch item is that cash flow coverage of debt is low based on the provided figures, which matters given the elevated leverage.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.73B	2.86B	2.31B	1.94B	1.58B
Gross Profit	1.43B	1.71B	952.00M	1.05B	823.00M
EBITDA	1.13B	1.17B	875.00M	751.00M	628.00M
Net Income	521.00M	507.00M	267.00M	386.00M	313.00M
Balance Sheet
Total Assets	13.57B	13.27B	13.29B	11.17B	10.32B
Cash, Cash Equivalents and Short-Term Investments	5.25B	3.03B	3.35B	5.14B	5.11B
Total Debt	4.83B	4.54B	4.20B	3.04B	3.48B
Total Liabilities	14.39B	14.07B	13.86B	11.79B	11.19B
Stockholders Equity	-818.00M	-908.00M	-679.00M	-718.00M	-953.00M
Cash Flow
Free Cash Flow	901.00M	812.00M	862.00M	587.00M	269.00M
Operating Cash Flow	1.10B	1.03B	1.05B	738.00M	383.00M
Investing Cash Flow	-212.00M	-704.00M	-1.23B	-211.00M	-180.00M
Financing Cash Flow	-671.00M	-39.00M	147.00M	-828.00M	-57.00M

EDENRED Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 19.32
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:EDEN, the sentiment is Neutral. The current price of 19.32 is above the 20-day moving average (MA) of 18.30, above the 50-day MA of 18.21, and below the 200-day MA of 22.01, indicating a neutral trend. The MACD of 0.38 indicates Negative momentum. The RSI at 59.15 is Neutral, neither overbought nor oversold. The STOCH value of 83.46 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FR:EDEN.

EDENRED Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EDEN	68 Neutral	€4.56B	8.66	―	6.47%	7.04%	73.35%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
SW	61 Neutral	€6.63B	7.25	18.37%	6.20%	1.16%	314.94%