EDENRED (EDEN.PA)
FR0010908533 - Common Stock
EDEN gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 46 industry peers in the Financial Services industry. While EDEN belongs to the best of the industry regarding profitability, there are concerns on its financial health. EDEN is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
EDEN had positive earnings in the past year.
In the past year EDEN had a positive cash flow from operations.
EDEN had positive earnings in each of the past 5 years.
EDEN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 2.01%, EDEN perfoms like the industry average, outperforming 51.28% of the companies in the same industry.
EDEN has a Return On Invested Capital of 15.84%. This is amongst the best in the industry. EDEN outperforms 89.74% of its industry peers.
EDEN had an Average Return On Invested Capital over the past 3 years of 14.92%. This is significantly above the industry average of 9.77%.
The 3 year average ROIC (14.92%) for EDEN is below the current ROIC(15.84%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.01% | ||
| ROE | N/A | ||
| ROIC | 15.84% |
ROA(3y)2.83%
ROA(5y)2.91%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)14.92%
ROIC(5y)15.48%
1.3 Margins
EDEN has a Profit Margin (10.62%) which is comparable to the rest of the industry.
EDEN's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 35.84%, EDEN belongs to the top of the industry, outperforming 84.62% of the companies in the same industry.
In the last couple of years the Operating Margin of EDEN has remained more or less at the same level.
Looking at the Gross Margin, with a value of 92.04%, EDEN belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Gross Margin of EDEN has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 35.84% | ||
| PM (TTM) | 10.62% | ||
| GM | 92.04% |
OM growth 3Y4.89%
OM growth 5Y1.39%
PM growth 3Y-13.21%
PM growth 5Y-10.44%
GM growth 3Y0.69%
GM growth 5Y0.68%
2. Health
2.1 Basic Checks
EDEN has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for EDEN remains at a similar level compared to 1 year ago.
Compared to 5 years ago, EDEN has more shares outstanding
Compared to 1 year ago, EDEN has a worse debt to assets ratio.
2.2 Solvency
EDEN has an Altman-Z score of 0.66. This is a bad value and indicates that EDEN is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of EDEN (0.66) is worse than 66.67% of its industry peers.
The Debt to FCF ratio of EDEN is 4.87, which is a neutral value as it means it would take EDEN, 4.87 years of fcf income to pay off all of its debts.
EDEN has a Debt to FCF ratio (4.87) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.87 | ||
| Altman-Z | 0.66 |
ROIC/WACC2.1
WACC7.54%
2.3 Liquidity
EDEN has a Current Ratio of 0.92. This is a bad value and indicates that EDEN is not financially healthy enough and could expect problems in meeting its short term obligations.
EDEN has a worse Current ratio (0.92) than 76.92% of its industry peers.
EDEN has a Quick Ratio of 0.92. This is a bad value and indicates that EDEN is not financially healthy enough and could expect problems in meeting its short term obligations.
EDEN has a worse Quick ratio (0.92) than 76.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.92 | ||
| Quick Ratio | 0.92 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 9.59% over the past year.
The Earnings Per Share has been growing by 8.38% on average over the past years. This is quite good.
EDEN shows a strong growth in Revenue. In the last year, the Revenue has grown by 23.78%.
Measured over the past years, EDEN shows a quite strong growth in Revenue. The Revenue has been growing by 12.78% on average per year.
EPS 1Y (TTM)9.59%
EPS 3Y18.15%
EPS 5Y8.38%
EPS Q2Q%2.44%
Revenue 1Y (TTM)23.78%
Revenue growth 3Y19.72%
Revenue growth 5Y12.78%
Sales Q2Q%21.82%
3.2 Future
Based on estimates for the next years, EDEN will show a very strong growth in Earnings Per Share. The EPS will grow by 21.62% on average per year.
Based on estimates for the next years, EDEN will show a quite strong growth in Revenue. The Revenue will grow by 8.58% on average per year.
EPS Next Y36.2%
EPS Next 2Y26.5%
EPS Next 3Y23.24%
EPS Next 5Y21.62%
Revenue Next Year15.44%
Revenue Next 2Y13.36%
Revenue Next 3Y12.41%
Revenue Next 5Y8.58%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 23.49, which indicates a rather expensive current valuation of EDEN.
The rest of the industry has a similar Price/Earnings ratio as EDEN.
The average S&P500 Price/Earnings ratio is at 24.29. EDEN is around the same levels.
A Price/Forward Earnings ratio of 17.25 indicates a rather expensive valuation of EDEN.
Based on the Price/Forward Earnings ratio, EDEN is valued a bit more expensive than the industry average as 61.54% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.35, EDEN is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.49 | ||
| Fwd PE | 17.25 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of EDEN indicates a somewhat cheap valuation: EDEN is cheaper than 64.10% of the companies listed in the same industry.
EDEN's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. EDEN is cheaper than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.71 | ||
| EV/EBITDA | 6.99 |
4.3 Compensation for Growth
EDEN's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
EDEN has a very decent profitability rating, which may justify a higher PE ratio.
EDEN's earnings are expected to grow with 23.24% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.65
PEG (5Y)2.8
EPS Next 2Y26.5%
EPS Next 3Y23.24%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.67%, EDEN has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.54, EDEN pays a bit more dividend than its industry peers.
EDEN's Dividend Yield is comparable with the S&P500 average which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.67% |
5.2 History
On average, the dividend of EDEN grows each year by 14.15%, which is quite nice.
Dividend Growth(5Y)14.15%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
EDEN pays out 104.12% of its income as dividend. This is not a sustainable payout ratio.
EDEN's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP104.12%
EPS Next 2Y26.5%
EPS Next 3Y23.24%
EDENRED
EPA:EDEN (7/26/2024, 5:29:51 PM)
37.59
-0.03 (-0.08%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap9.23B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.67% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.49 | ||
| Fwd PE | 17.25 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.65
PEG (5Y)2.8
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.01% | ||
| ROE | N/A | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 35.84% | ||
| PM (TTM) | 10.62% | ||
| GM | 92.04% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.92 | ||
| Quick Ratio | 0.92 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)9.59%
EPS 3Y18.15%
EPS 5Y
EPS Q2Q%
EPS Next Y36.2%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)23.78%
Revenue growth 3Y19.72%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y