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1. Company Snapshot

1.a. 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.

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1.b. Last Insights on EDEN

Edenred SA's recent performance has been impacted by a series of negative factors. The company's shares have been under pressure, with a significant decline in recent weeks. According to recent analysis, this downturn is part of a larger trend. Furthermore, Edenred's stock has been added to the Zacks Rank #5 (Strong Sell) List, indicating a negative outlook from analysts. Additionally, there are concerns about the company's fundamentals, although specific details are not provided. These factors have likely contributed to the negative sentiment surrounding Edenred SA.

1.c. Company Highlights

2. Edenred's H1 2025 Earnings: Resilient Growth Amidst Uncertainty

Edenred reported a strong financial performance in H1 2025, with operating revenue growing 7.1% like-for-like to EUR 1.339 billion. EBITDA like-for-like growth was 14.4%, beating consensus by EUR 19 million. Adjusted EPS increased by 7.4% to EUR 1.16, driven by improved performance and share buybacks. The company's operating EBITDA margin rate was 40.6% for the first semester, an improvement of 400 basis points like-for-like. As Virginie Duperat-Vergne noted, "Operating revenue was EUR 1.339 billion, growing 7.1% like-for-like."

Publication Date: Jul -27

📋 Highlights
  • Revenue Growth: Operating revenue grew 7.1% like-for-like to EUR 1.339 billion in H1 2025.
  • EBITDA Outperformance: EBITDA grew 14.4% like-for-like, beating consensus by EUR 19 million.
  • Latin America Growth: Delivered EUR 393 million in operating revenue, with 15.1% like-for-like growth.
  • Funds from Operations: Reached a record EUR 468 million, a 17% year-on-year increase.
  • Net Debt Position: Stood at EUR 2.351 billion as of June 30, 2025, impacted by M&A and forex effects.

Segment Performance

The company's Mobility segment saw double-digit growth, reaching 10.9% in H1 2025. Benefits & Engagement grew 8.1% in H1, accelerating in Q2 to 8.7%. Complementary Solutions posted a negative growth of 7.6% due to the planned BaaS B2C exit and a large public social program in Romania not being reconducted. Latin America and Rest of the World saw double-digit growth, while Europe's growth was soft at 1.7% but accelerated in Q2 to 2.2%.

Cash Flow and Debt

The company generated a negative free cash flow of EUR 118 million, consistent with the usual H1 seasonality pattern. Funds from operations (FFO) reached a record EUR 468 million, a 17% increase year-on-year, mainly due to strong EBITDA growth. Net debt stood at EUR 2.351 billion as of June 30, 2025, impacted by M&A spend, shareholder returns, and foreign exchange effects.

Guidance and Outlook

Edenred confirmed its 2025 objectives: at least 10% like-for-like EBITDA growth and a 70% free cash flow conversion rate. The company plans to continue investing in sales force and digital capabilities, and will monetize its users, clients, and merchants by proposing more solutions. Analysts estimate next year's revenue growth at 6.4%.

Valuation

With a P/E Ratio of 13.05 and an EV/EBITDA of 7.76, Edenred's valuation appears reasonable. The company's Dividend Yield is 4.45%, and Free Cash Flow Yield is 11.43%. The Net Debt / EBITDA ratio is 2.4, indicating a manageable debt level. ROE is -54.93%, but ROIC is 14.65%, suggesting a strong return on invested capital.

3. NewsRoom

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New Strong Sell Stocks for Nov. 11

Nov -11

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Edenred (ENXTPA:EDEN): Exploring the Valuation After a 12% Monthly Share Price Decline

Oct -08

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Best Value Stocks to Buy for July 25th

Jul -25

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Are Business Services Stocks Lagging EDENRED (EDNMY) This Year?

Apr -04

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Is EDENRED (EDNMY) Stock Outpacing Its Business Services Peers This Year?

Mar -18

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Edenred SE (EDNMY) (FY 2024) Earnings Call Highlights: Strong Revenue Growth and Strategic ...

Feb -19

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What Makes EDENRED (EDNMY) a New Strong Buy Stock

Jan -10

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Three Companies That May Be Priced Below Their Estimated Worth In December 2024

Dec -25

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.84%)

6. Segments

Benefits & Engagement

Expected Growth: 8.23%

Edenred SA's 8.23% growth in Benefits & Engagement is driven by increasing adoption of digital solutions, expansion into new markets, and strategic partnerships. Additionally, the rise of employee benefits and wellness programs, coupled with growing demand for personalized experiences, contribute to the segment's growth.

Mobility

Expected Growth: 10.27%

Edenred SA's Mobility segment growth of 10.27% is driven by increasing adoption of digital solutions for employee benefits, rising demand for sustainable transportation, and expansion into new markets. Additionally, strategic partnerships and investments in technology have enhanced the company's offerings, contributing to the segment's growth.

Complementary Solutions

Expected Growth: 9.03%

Edenred SA's Complementary Solutions segment growth of 9.03% is driven by increasing adoption of digital payment solutions, expansion into new markets, and strategic partnerships. Additionally, growing demand for employee benefits and rewards, as well as the need for companies to optimize their employee expenses, contribute to the segment's growth.

7. Detailed Products

Ticket Restaurant

A meal voucher program that allows employees to purchase meals at participating restaurants and cafes

Ticket Alimentação

A food voucher program that allows employees to purchase food and groceries at participating supermarkets and grocery stores

Ticket Car

A fuel voucher program that allows employees to purchase fuel at participating gas stations

Childcare Vouchers

A childcare voucher program that allows employees to pay for childcare services

Commuter Benefits

A commuter benefit program that allows employees to set aside pre-tax dollars for commuting expenses

Edenred Benefits

A benefits platform that allows employees to access a range of benefits, including meal vouchers, childcare vouchers, and commuter benefits

8. Edenred SA's Porter Forces

Forces Ranking

Threat Of Substitutes

Edenred SA operates in a market with moderate threat of substitutes, as there are alternative products and services available to customers. However, the company's strong brand recognition and customer loyalty mitigate this threat to some extent.

Bargaining Power Of Customers

Edenred SA's customers have relatively low bargaining power due to the company's diversified customer base and lack of concentration of customers. This reduces the risk of customers negotiating lower prices or demanding better services.

Bargaining Power Of Suppliers

Edenred SA's suppliers have moderate bargaining power due to the company's dependence on a few key suppliers for certain products and services. However, the company's strong relationships with suppliers and its ability to negotiate favorable terms mitigate this risk.

Threat Of New Entrants

The threat of new entrants in Edenred SA's market is low due to the company's strong brand recognition, high barriers to entry, and significant investments required to establish a presence in the market.

Intensity Of Rivalry

The intensity of rivalry in Edenred SA's market is high due to the presence of several established players, high stakes, and a competitive landscape. The company must continuously innovate and differentiate itself to maintain its market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 119.74%
Debt Cost 6.11%
Equity Weight -19.74%
Equity Cost 7.28%
WACC 5.88%
Leverage -606.63%

11. Quality Control: Edenred SA passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
KRUK

A-Score: 6.4/10

Value: 6.0

Growth: 5.9

Quality: 7.2

Yield: 6.9

Momentum: 6.0

Volatility: 6.3

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Jyske Bank

A-Score: 6.3/10

Value: 6.3

Growth: 5.2

Quality: 5.2

Yield: 3.1

Momentum: 9.0

Volatility: 8.7

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Avanza Bank

A-Score: 6.2/10

Value: 2.8

Growth: 6.9

Quality: 8.8

Yield: 6.2

Momentum: 8.5

Volatility: 4.0

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Wendel

A-Score: 6.0/10

Value: 7.7

Growth: 3.9

Quality: 5.9

Yield: 6.9

Momentum: 3.0

Volatility: 8.3

1-Year Total Return ->

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Caledonia Investments

A-Score: 5.4/10

Value: 2.5

Growth: 2.4

Quality: 7.2

Yield: 4.4

Momentum: 7.0

Volatility: 9.0

1-Year Total Return ->

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Edenred

A-Score: 4.9/10

Value: 7.8

Growth: 7.1

Quality: 6.0

Yield: 5.6

Momentum: 0.0

Volatility: 3.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

18.92$

Current Price

18.93$

Potential

-0.00%

Expected Cash-Flows