EDENRED (EDEN) AI Stock Analysis

• Market Cap: €6.21B
• Dividend Yield: 4.74%
• Average Volume (3M): 671.89K
• Price to Earnings (P/E): 12.4
• Beta (1Y): 0.75
• Revenue Growth: 7.04%
• EPS Growth: 73.35%
• Country: FR
• Employees: 12,320
• Sector: Consumer Defensive
• Sector Strength: 51
• Industry: Financial - Credit Services
• EPS (TTM): 1.16
• Shares Outstanding: 239,891,070
• 10 Day Avg. Volume: 647,281
• 30 Day Avg. Volume: 671,886
• PEG Ratio: 0.18
• Price to Book (P/B): -6.99
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.37
• 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: €41.19
• Price Target Upside: 63.97% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 70 Outperform
• Price Target: €29.00 ▲(15.45%Upside)

EDENRED's overall score is driven by strong financial performance and attractive valuation, offset by concerns over its balance sheet stability. Technical analysis suggests a cautious approach due to neutral momentum indicators and below-average price trends.

Positive Factors

Earnings

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

Growth Drivers

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

Segment Performance

Strong growth in Mobility outperformed Benefits & Engagement, with significant outperformance in Latin America compared to Europe.

Negative Factors

Debt and Financial Stability

Gross debt is on the rise, which might impact the financial stability of Edenred.

Free Cash Flow

Free cash flow disappointed with negative €118m.

Regulatory Challenges

Regulation is affecting the strongest profit-generating businesses.

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 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 exhibits strong revenue and profit growth with notable margins. However, its financial stability is challenged by negative stockholders' equity and potential volatility in net income growth. Operational efficiency is evident, but balance sheet concerns persist.

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: Negative
• Last Price: 25.12
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 25.12 is below the 20-day moving average (MA) of 26.49, below the 50-day MA of 26.01, and below the 200-day MA of 28.46, indicating a bearish trend. The MACD of 0.04 indicates Positive momentum. The RSI at 42.82 is Neutral, neither overbought nor oversold. The STOCH value of 29.47 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
EDEN	70 Outperform	€6.21B	12.39		4.74%	7.04%	73.35%
Sector *	65 Neutral	$24.37B	12.95	-0.84%	3.08%	1.71%	-10.31%
0J3F	―	€7.50B	11.13	16.07%	17.02%	―	―

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.