EDENRED (EDEN.PA)

FR0010908533 - Common Stock

46.8  -0.5 (-1.06%)

Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to EDEN. EDEN was compared to 50 industry peers in the Financial Services industry. EDEN has an excellent profitability rating, but there are concerns on its financial health. EDEN is growing strongly while it is still valued neutral. This is a good combination!



7

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.
Each year in the past 5 years EDEN has 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 in line with its industry peers.
The Return On Invested Capital of EDEN (15.84%) is better than 90.48% of its industry peers.
The Average Return On Invested Capital over the past 3 years for EDEN is significantly above the industry average of 8.81%.
The 3 year average ROIC (14.92%) for EDEN is below the current ROIC(15.84%), indicating increased profibility in the last year.
Industry RankSector 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

The Profit Margin of EDEN (10.62%) is comparable to the rest of the industry.
EDEN's Profit Margin has declined in the last couple of years.
EDEN's Operating Margin of 35.84% is amongst the best of the industry. EDEN outperforms 83.33% of its industry peers.
EDEN's Operating Margin has been stable in the last couple of years.
With an excellent Gross Margin value of 92.04%, EDEN belongs to the best of the industry, outperforming 97.62% of the companies in the same industry.
EDEN's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%

1

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.
The number of shares outstanding for EDEN has been increased compared to 5 years ago.
EDEN has a worse debt/assets ratio than last year.

2.2 Solvency

Based on the Altman-Z score of 0.77, we must say that EDEN is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of EDEN (0.77) is worse than 66.67% of its industry peers.
EDEN has a debt to FCF ratio of 4.87. This is a neutral value as EDEN would need 4.87 years to pay back of all of its debts.
EDEN has a Debt to FCF ratio of 4.87. This is comparable to the rest of the industry: EDEN outperforms 59.52% of its industry peers.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 4.87
Altman-Z 0.77
ROIC/WACC2.38
WACC6.65%

2.3 Liquidity

A Current Ratio of 0.92 indicates that EDEN may have some problems paying its short term obligations.
EDEN has a Current ratio of 0.92. This is in the lower half of the industry: EDEN underperforms 76.19% 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's Quick ratio of 0.92 is on the low side compared to the rest of the industry. EDEN is outperformed by 76.19% of its industry peers.
Industry RankSector Rank
Current Ratio 0.92
Quick Ratio 0.92

8

3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 9.59% over the past year.
Measured over the past years, EDEN shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.38% on average per year.
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

EDEN is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.62% yearly.
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

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 stable.

4

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 29.25, the valuation of EDEN can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as EDEN.
When comparing the Price/Earnings ratio of EDEN to the average of the S&P500 Index (28.60), we can say EDEN is valued inline with the index average.
A Price/Forward Earnings ratio of 21.62 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 61.90% of the companies are valued more cheaply.
The average S&P500 Price/Forward Earnings ratio is at 20.15. EDEN is around the same levels.
Industry RankSector Rank
PE 29.25
Fwd PE 21.62

4.2 Price Multiples

EDEN's Enterprise Value to EBITDA ratio is in line with the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as EDEN.
Industry RankSector Rank
P/FCF 13.52
EV/EBITDA 8.92

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.
The decent profitability rating of EDEN may justify a higher PE ratio.
A more expensive valuation may be justified as EDEN's earnings are expected to grow with 22.79% in the coming years.
PEG (NY)0.83
PEG (5Y)3.49
EPS Next 2Y26.1%
EPS Next 3Y22.79%

4

5. Dividend

5.1 Amount

EDEN has a Yearly Dividend Yield of 2.33%.
EDEN's Dividend Yield is a higher than the industry average which is at 4.84.
Compared to an average S&P500 Dividend Yield of 2.32, EDEN has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 2.33%

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

104.12% of the earnings are spent on dividend by EDEN. 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 (5/17/2024, 7:00:00 PM)

46.8

-0.5 (-1.06%)

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 Cap11.65B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 2.33%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
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Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
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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 RankSector Rank
PE 29.25
Fwd PE 21.62
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)0.83
PEG (5Y)3.49
Profitability
Industry RankSector 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 RankSector 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