ENXTPA:EDEN

Stock Analysis Report

Executive Summary

Edenred SA provides transactional solutions for companies, employees, and merchants worldwide.


Snowflake Analysis

Solid track record with moderate growth potential.


Similar Companies

Share Price & News

How has Edenred's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: EDEN's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

1.4%

EDEN

13.7%

FR IT

10.6%

FR Market


1 Year Return

-8.0%

EDEN

-20.6%

FR IT

-18.9%

FR Market

Return vs Industry: EDEN exceeded the French IT industry which returned -18.9% over the past year.

Return vs Market: EDEN exceeded the French Market which returned -17.6% over the past year.


Shareholder returns

EDENIndustryMarket
7 Day1.4%13.7%10.6%
30 Day-19.3%-20.8%-17.6%
90 Day-17.4%-23.9%-25.6%
1 Year-6.0%-8.0%-15.7%-20.6%-16.1%-18.9%
3 Year84.1%70.3%-0.4%-11.8%0.2%-9.2%
5 Year91.7%62.8%53.2%33.2%11.2%-6.5%

Price Volatility Vs. Market

How volatile is Edenred's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Edenred undervalued compared to its fair value and its price relative to the market?

16.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: EDEN (€38.02) is trading below our estimate of fair value (€45.59)

Significantly Below Fair Value: EDEN is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: EDEN is poor value based on its PE Ratio (29.3x) compared to the IT industry average (12.9x).

PE vs Market: EDEN is poor value based on its PE Ratio (29.3x) compared to the French market (13.2x).


Price to Earnings Growth Ratio

PEG Ratio: EDEN is poor value based on its PEG Ratio (3.5x)


Price to Book Ratio

PB vs Industry: EDEN has negative assets, so we can't compare its PB Ratio to the FR IT industry average.


Next Steps

Future Growth

How is Edenred forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

8.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EDEN's forecast earnings growth (8.3% per year) is above the savings rate (-0.1%).

Earnings vs Market: EDEN's earnings (8.3% per year) are forecast to grow slower than the French market (12.6% per year).

High Growth Earnings: EDEN's earnings are forecast to grow, but not significantly.

Revenue vs Market: EDEN's revenue (7.4% per year) is forecast to grow faster than the French market (3.7% per year).

High Growth Revenue: EDEN's revenue (7.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: EDEN's Return on Equity is forecast to be high in 3 years time (32.8%)


Next Steps

Past Performance

How has Edenred performed over the past 5 years?

13.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EDEN has high quality earnings.

Growing Profit Margin: EDEN's current net profit margins (19.9%) are higher than last year (19.1%).


Past Earnings Growth Analysis

Earnings Trend: EDEN's earnings have grown by 13.1% per year over the past 5 years.

Accelerating Growth: EDEN's earnings growth over the past year (22.8%) exceeds its 5-year average (13.1% per year).

Earnings vs Industry: EDEN earnings growth over the past year (22.8%) exceeded the IT industry 9%.


Return on Equity

High ROE: EDEN's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Next Steps

Financial Health

How is Edenred's financial position?


Financial Position Analysis

Short Term Liabilities: EDEN has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: EDEN has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: EDEN has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: EDEN's has negative shareholder equity, so we do not need to check if its debt has reduced over time.

Debt Coverage: EDEN's debt is not well covered by operating cash flow (15.2%).

Interest Coverage: EDEN's interest payments on its debt are well covered by EBIT (33.7x coverage).


Balance Sheet

Inventory Level: EDEN has a low level of unsold assets or inventory.

Debt Coverage by Assets: EDEN has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


Next Steps

Dividend

What is Edenred's current dividend yield, its reliability and sustainability?

2.28%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: EDEN's dividend (2.29%) is higher than the bottom 25% of dividend payers in the French market (2.03%).

High Dividend: EDEN's dividend (2.29%) is low compared to the top 25% of dividend payers in the French market (6.33%).


Stability and Growth of Payments

Stable Dividend: EDEN has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: EDEN's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (67.1%), EDEN's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: EDEN's dividends in 3 years are forecast to be covered by earnings (52.5% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.3yrs

Average management tenure


CEO

Bertrand Dumazy (48yo)

4.42s

Tenure

€4,270,955

Compensation

Mr. Bertrand Dumazy, CA has been the Chief Executive Officer of Edenred SA since October 26, 2015. Mr. Dumazy serves as Director of Neoen S.A. Mr. Dumazy has been a Director of Edenred SA since October 26, ...


CEO Compensation Analysis

Compensation vs Market: Bertrand's total compensation ($USD4.74M) is about average for companies of similar size in the French market ($USD3.97M).

Compensation vs Earnings: Bertrand's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Bertrand Dumazy
Chairman & CEO4.42yrs€4.27m0.052% 4.8m
Jean-Bernard Hamel
Senior Vice-President of Treasury & Financing and Employee Director1.67yrs€7.53k0.0019% 171.1k
Patrick Bataillard
Executive Vice President of Finance4.25yrsno datano data
Solène Zammito
Financial Communication & Investor Relations Directorno datano datano data
Philippe Relland-Bernard
Executive Vice President of Legal & Regulatory Affairs3.83yrsno datano data
Marie-Laurence Bouchon
Vice President of Communications0.67yrno datano data
Elie du de Saint Maur
COO of Corporate Payment Services and Executive VP of Marketing & Strategy3.42yrsno datano data
Jacques Adoue
Executive Vice President of Human Resources & Corporate Social Responsibility2.67yrsno datano data
Graziella Gavezotti
Chief Operating Officer of Southern Europe & Africa8.17yrsno datano data
Arnaud Erulin
Chief Operating Officer of Europe11.17yrsno datano data

4.3yrs

Average Tenure

51.5yo

Average Age

Experienced Management: EDEN's management team is considered experienced (4.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Bertrand Dumazy
Chairman & CEO4.42yrs€4.27m0.052% 4.8m
Jean-Bernard Hamel
Senior Vice-President of Treasury & Financing and Employee Director1.67yrs€7.53k0.0019% 171.1k
Gabriele di Genola e Suniglia
Independent Director9.67yrs€51.58k0.00021% 19.4k
Bertrand Méheut
Independent Director9.67yrs€51.58k0.00021% 19.4k
Jean-Paul Bailly
Independent Director9.67yrs€85.32k0.00025% 23.1k
Jean-Romain Lhomme
Independent Director6.42yrs€53.99k0.00021% 19.4k
Françoise Gri
Vice-Chairman of the Board & Lead Independent Director2.83yrs€74.08k0.00080% 74.0k
Anne Bouverot
Independent Director9.67yrs€51.58k0.00042% 38.8k
Sylvia Coutinho
Independent Director4yrs€53.99k0.00021% 19.4k
Maëlle Gavet
Independent Director5.83yrs€23.95k0.00021% 19.4k

6.1yrs

Average Tenure

58yo

Average Age

Experienced Board: EDEN's board of directors are considered experienced (6.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Edenred SA's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Edenred SA
  • Ticker: EDEN
  • Exchange: ENXTPA
  • Founded: 1954
  • Industry: Data Processing and Outsourced Services
  • Sector: Software
  • Market Cap: €9.248b
  • Shares outstanding: 242.81m
  • Website: https://www.edenred.com

Number of Employees


Location

  • Edenred SA
  • Immeuble Columbus
  • 178-180 Boulevard Gabriel Péri
  • Malakoff
  • Ile-de-France
  • 92245
  • France

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EDENENXTPA (Euronext Paris)YesOrdinary SharesFREURJul 2010
QSVDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJul 2010
0MUMLSE (London Stock Exchange)YesOrdinary SharesGBEURJul 2010
EDNM.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJul 2010
EDENPBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURJul 2010
QSVETLX (Eurotlx)YesOrdinary SharesITEURJul 2010
EDNM.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDJul 2013

Biography

Edenred SA provides transactional solutions for companies, employees, and merchants worldwide. It offers employee benefit solutions, including Ticket Restaurant, Ticket Alimentación, Ticket Plus, Nutrisavings, etc.; and fleet and mobility solutions, such as Ticket Log, Ticket Car, UTA, Ticket Empresarial, etc. 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, healthcare, training, and human services, as well as purchases of environmentally-friendly products. The company was founded in 1954 and is headquartered in Malakoff, France. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 22:31
End of Day Share Price2020/03/31 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.