Wide-moat Edenred produced a strong start to 2024, despite investors’ concerns over the last few months that have sent the share price tumbling. Organic revenue growth was north of 20% in the first quarter, which, even stripping for interest income, came to almost 17%—a solid result. Management is sticking with its previous full-year guidance, and we maintain our EUR 76 fair value estimate. We see the shares as attractive from here.
Edenred's programs center on providing for basic needs, which insulates the company from economic cycles.
About half of Edenred's volume is generated in France and Brazil. This concentration exposes the company to meaningful risk if tax laws are changed in these countries.
|
Metric
|
EDEN
|
SW
|
|---|---|---|
Price/Earnings (Normalized) | 39.14 | 16.70 |
Price/Book Value | — | 2.67 |
Price/Sales | 4.72 | 0.52 |
Price/Cash Flow | 17.28 | 12.11 |
|
Metric
|
EDEN
|
SW
|
|---|---|---|
Quick Ratio | 0.69 | 1.11 |
Current Ratio | 0.92 | 1.22 |
Interest Coverage | — | 5.65 |
|
Metric
|
EDEN
|
SW
|
|---|---|---|
Return on Assets (Normalized) | 2.87% | 5.08% |
Return on Equity (Normalized) | — | 22.19% |
Return on Invested Capital (Normalized) | 10.29% | 9.76% |
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
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