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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 2025 Results: Strong Commercial and Operating Performance

Edenred delivered a strong financial performance in 2025, with operating revenue growing 6.2% like-for-like, driven by a 9.1% growth excluding the impact of the Italian regulation. The company's EBITDA grew 11.2% like-for-like, with a 16.5% growth excluding the Italian regulation, resulting in an EBITDA margin of 41.4%, an increase of 280 basis points. The adjusted EPS reached EUR 2.59, a 10% increase versus 2024. The company's total revenue was EUR 2.961 billion, growing 7.6% like-for-like, excluding Italian regulatory changes.

Publication Date: Feb -25

📋 Highlights
  • Earnings Surpass Guidance:: Edenred exceeded 2025 guidance with 11.2% like-for-like EBITDA growth (16.5% ex-Italy) and 34% free cash flow increase.
  • Margin Expansion & Efficiency:: EBITDA margin rose 280 bps to 41.4%, driven by 1.3% like-for-like OpEx growth under the "Fit for Growth" program.
  • Shareholder Returns Strengthened:: Dividend up 10% to EUR 1.33/share, net debt down 31% to EUR 1.2B, and leverage ratio improved to 0.9x.
  • Strategic Growth Levers:: 30% user base expansion in 2025; 60% of future growth from new clients, 30-40% from service enrichment (e.g., 60% revenue growth via RB integration).
  • 2026 Rebased, 2027-2028 Recovery:: 2026 guidance at -8% to -12% (due to Brazil/Italy risks), but 8-12% EBITDA growth expected by 2028 with sustained free cash flow conversion to 65%+.

Segmental Performance

Edenred's growth was driven by its Mobility segment, which grew 11.7%, and its Benefits & Engagement segment, which grew 5.9%. The company's Rest of the World segment grew 16.8%, representing 30% of the company's operating revenue. The company's diversified portfolio of solutions, with Benefits & Engagement representing 64% of its total operating revenue, contributed to its strong performance.

Operational Efficiency

Edenred's Fit for Growth program enabled it to achieve quick wins, including more workforce efficiency, renegotiated supplier contracts, and IT internalization, resulting in an OpEx like-for-like growth of 1.3% in 2025. As Bertrand Dumazy stated, "2025 was a good year to work on efficiency, with a 1.3% OpEx growth, mainly driven by payroll, cost of sales, and other charges."

Guidance and Outlook

Edenred's guidance for 2026 is based on a worst-case legal scenario related to the Brazilian presidential decree, which could lead to a decrease of 8-12% in the company's operating revenue. However, the company expects to see renewed sustainable and profitable growth in 2027 and 2028, with an EBITDA like-for-like growth of 8-12%. The company's strong balance sheet, with a leverage ratio of 0.9x, allows it to invest in organic growth, data and AI, and focused M&A opportunities.

Valuation

Edenred's current valuation metrics, including a P/E Ratio of 8.91, EV/EBITDA of 6.96, and Dividend Yield of 6.62%, suggest that the company's strong financial performance and growth prospects are reasonably priced in. However, the company's ROE of -48.99% and Net Debt / EBITDA of 3.26x highlight areas for improvement.

3. NewsRoom

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Edenred SE (EDNMF) (FY 2025) Earnings Call Highlights: Strong Financial Performance Amid ...

Feb -24

Source:

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New Strong Sell Stocks for Nov. 11

Nov -11

Source:

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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

Source: zacks.com

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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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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
Avanza Bank

A-Score: 6.3/10

Value: 2.8

Growth: 7.2

Quality: 8.6

Yield: 6.2

Momentum: 8.5

Volatility: 4.3

1-Year Total Return ->

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KRUK

A-Score: 6.2/10

Value: 5.8

Growth: 5.8

Quality: 6.2

Yield: 6.9

Momentum: 6.0

Volatility: 6.7

1-Year Total Return ->

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Jyske Bank

A-Score: 6.2/10

Value: 6.2

Growth: 5.6

Quality: 4.8

Yield: 2.5

Momentum: 9.5

Volatility: 8.7

1-Year Total Return ->

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Wendel

A-Score: 5.8/10

Value: 7.5

Growth: 3.9

Quality: 5.9

Yield: 7.5

Momentum: 2.0

Volatility: 8.0

1-Year Total Return ->

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Stock-Card
Caledonia Investments

A-Score: 5.2/10

Value: 2.0

Growth: 2.4

Quality: 6.9

Yield: 4.4

Momentum: 6.0

Volatility: 9.3

1-Year Total Return ->

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Stock-Card
Edenred

A-Score: 4.9/10

Value: 7.9

Growth: 7.1

Quality: 6.0

Yield: 5.6

Momentum: 0.0

Volatility: 2.7

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

18.02$

Current Price

18.02$

Potential

-0.00%

Expected Cash-Flows