EDENRED (EDEN.PA)
FR0010908533 - Common Stock
We assign a fundamental rating of 5 out of 10 to EDEN. EDEN was compared to 51 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 not priced too expensively while it is growing strongly. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
EDEN had positive earnings in the past year.
EDEN had a positive operating cash flow in the past year.
In the past 5 years EDEN has always been profitable.
Each year in the past 5 years EDEN had a positive operating cash flow.
1.2 Ratios
EDEN has a Return On Assets (2.01%) which is comparable to the rest of the industry.
With an excellent Return On Invested Capital value of 15.84%, EDEN belongs to the best of the industry, outperforming 90.70% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for EDEN is significantly above the industry average of 9.01%.
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.
With an excellent Operating Margin value of 35.84%, EDEN belongs to the best of the industry, outperforming 83.72% 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.
The Gross Margin of EDEN (92.04%) is better than 95.35% of its industry peers.
EDEN's Gross Margin has been stable in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), EDEN is creating value.
The number of shares outstanding for EDEN remains at a similar level compared to 1 year ago.
The number of shares outstanding for EDEN has been increased compared to 5 years ago.
The debt/assets ratio for EDEN is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.75, we must say that EDEN is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.75, EDEN is doing worse than 65.12% of the companies in the same industry.
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.
Looking at the Debt to FCF ratio, with a value of 4.87, EDEN is in the better half of the industry, outperforming 65.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.87 | ||
| Altman-Z | 0.75 |
ROIC/WACC2.36
WACC6.7%
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's Current ratio of 0.92 is on the low side compared to the rest of the industry. EDEN is outperformed by 76.74% 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 Quick ratio of 0.92. This is in the lower half of the industry: EDEN underperforms 76.74% 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.
EDEN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.38% yearly.
The Revenue has grown by 23.78% in the past year. This is a very strong growth!
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 growth Q2Q2.44%
Revenue 1Y (TTM)23.78%
Revenue growth 3Y19.72%
Revenue growth 5Y12.78%
Revenue growth Q2Q21.82%
3.2 Future
The Earnings Per Share is expected to grow by 21.62% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 15.01% on average over the next years. This is quite good.
EPS Next Y35.28%
EPS Next 2Y26.1%
EPS Next 3Y22.79%
EPS Next 5Y21.62%
Revenue Next Year14.43%
Revenue Next 2Y12.87%
Revenue Next 3Y11.9%
Revenue Next 5Y15.01%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 28.53, which means the current valuation is very expensive for EDEN.
Compared to the rest of the industry, the Price/Earnings ratio of EDEN is on the same level as its industry peers.
EDEN is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.20, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 21.09 indicates a rather expensive valuation of EDEN.
EDEN's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. EDEN is more expensive than 62.79% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.60. EDEN is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.53 | ||
| Fwd PE | 21.09 |
4.2 Price Multiples
EDEN's Enterprise Value to EBITDA ratio is in line with the industry average.
62.79% of the companies in the same industry are more expensive than EDEN, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.18 | ||
| EV/EBITDA | 8.65 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of EDEN may justify a higher PE ratio.
EDEN's earnings are expected to grow with 22.79% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.81
PEG (5Y)3.4
EPS Next 2Y26.1%
EPS Next 3Y22.79%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.34%, EDEN has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.99, EDEN pays a bit more dividend than its industry peers.
EDEN's Dividend Yield is comparable with the S&P500 average which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.34% |
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 2Y26.1%
EPS Next 3Y22.79%
EDENRED
EPA:EDEN (4/24/2024, 5:35:30 PM)
45.65
+0.2 (+0.44%)
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 Cap11.36B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.34% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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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 | 28.53 | ||
| Fwd PE | 21.09 | ||
| 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)0.81
PEG (5Y)3.4
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)
Growth
EPS 1Y (TTM)9.59%
EPS 3Y18.15%
EPS 5Y
EPS growth Q2Q
EPS Next Y35.28%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)23.78%
Revenue growth 3Y19.72%
Revenue growth 5Y
Revenue growth 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