EDENRED (EDEN) AI Stock Analysis

• Market Cap: €6.20B
• Dividend Yield: 4.76%
• Average Volume (3M): 1.00M
• Price to Earnings (P/E): 12.4
• Beta (1Y): 0.87
• Revenue Growth: 7.04%
• EPS Growth: 73.35%
• Country: FR
• Employees: 12,320
• Sector: Services
• Sector Strength: N/A
• Industry: Financial - Credit Services
• EPS (TTM): 1.16
• Shares Outstanding: 239,891,070
• 10 Day Avg. Volume: 836,801
• 30 Day Avg. Volume: 1,003,546
• PEG Ratio: 0.16
• Price to Book (P/B): -8.58
• Price to Sales (P/S): 2.73
• P/FCF Ratio: 9.59
• 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: €35.59
• Price Target Upside: 40.12% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

• Rating: 66 Neutral
• Price Target: €28.00 ▲(10.24% Upside)

EDENRED's strong financial performance and attractive valuation are tempered by technical indicators suggesting overbought conditions and potential financial instability due to negative equity. The stock's undervaluation and high dividend yield are significant positives, but caution is advised due to technical and balance sheet concerns.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong market position and effective business model, supporting long-term financial health and expansion potential.

Cash Flow Generation

Strong cash flow generation enhances financial flexibility, enabling strategic investments and debt management, supporting sustainable growth.

Profit Margins

Robust profit margins reflect operational efficiency and pricing power, contributing to long-term profitability and competitive advantage.

Negative Factors

Negative Stockholders' Equity

Negative equity can indicate financial distress and limit the company's ability to raise capital, posing risks to long-term stability.

Capital Allocation Risks

Inefficient capital allocation can hinder growth and lead to suboptimal returns, affecting long-term financial performance.

Net Income Volatility

Volatile net income growth can create uncertainty in earnings predictability, impacting investor confidence and valuation stability.

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 charges associated with its payment solutions. The company earns money from businesses that purchase its employee benefits products, such as meal vouchers and gift cards, which are then used by employees. Additionally, EDENRED charges fees for the management and processing of these benefits, as well as for its digital platforms that facilitate expense management and incentive programs. Significant partnerships with large corporations and government entities also contribute to its earnings, as they often integrate EDENRED's solutions into their employee benefit offerings. Furthermore, the company may also benefit from value-added services, such as data analytics and reporting, which provide additional revenue opportunities.

EDENRED Financial Statement Overview

Summary

EDENRED shows strong revenue and profit growth with robust operational efficiency and cash flow management. However, concerns over negative stockholders' equity and financial leverage temper the overall financial performance.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.68B	2.86B	2.31B	1.94B	1.58B	1.42B
Gross Profit	1.27B	1.71B	952.00M	1.05B	823.00M	710.00M
EBITDA	1.16B	1.17B	875.00M	751.00M	628.00M	583.00M
Net Income	507.00M	507.00M	267.00M	386.00M	313.00M	238.00M
Balance Sheet
Total Assets	13.32B	13.27B	13.29B	11.17B	10.32B	9.43B
Cash, Cash Equivalents and Short-Term Investments	2.98B	3.03B	3.35B	5.14B	5.11B	4.72B
Total Debt	5.35B	4.54B	4.20B	3.04B	3.48B	3.30B
Total Liabilities	14.37B	14.07B	13.86B	11.79B	11.19B	10.56B
Stockholders Equity	-1.16B	-908.00M	-679.00M	-718.00M	-953.00M	-1.23B
Cash Flow
Free Cash Flow	588.00M	812.00M	862.00M	587.00M	269.00M	1.38B
Operating Cash Flow	701.00M	1.03B	1.05B	738.00M	383.00M	1.49B
Investing Cash Flow	-590.00M	-704.00M	-1.23B	-211.00M	-180.00M	-294.00M
Financing Cash Flow	-125.00M	-39.00M	147.00M	-828.00M	-57.00M	-286.00M

EDENRED Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 25.40
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 25.4 is above the 20-day moving average (MA) of 21.93, above the 50-day MA of 22.47, and below the 200-day MA of 26.52, indicating a neutral trend. The MACD of 0.92 indicates Negative momentum. The RSI at 68.25 is Neutral, neither overbought nor oversold. The STOCH value of 86.02 is Negative, 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
SW	―	€7.59B	10.89	18.37%	17.43%	1.16%	314.94%
EDEN	―	€6.20B	12.35	―	4.76%	7.04%	73.35%
Sector *	―	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%