EDENRED (EDEN.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:EDEN - FR0010908533 - Common Stock
17.43 EUR
+0.05 (+0.29%)
EDEN gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 59 industry peers in the Financial Services industry. EDEN scores excellent on profitability, but there are concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on EDEN. Finally EDEN also has an excellent dividend rating.
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.
- EDEN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 3.80%, EDEN is in the better half of the industry, outperforming 66.10% of the companies in the same industry.
- EDEN has a better Return On Invested Capital (19.31%) than 93.22% of its industry peers.
- EDEN had an Average Return On Invested Capital over the past 3 years of 16.28%. This is significantly above the industry average of 10.02%.
- The 3 year average ROIC (16.28%) for EDEN is below the current ROIC(19.31%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.8% | ||
| ROE | N/A | ||
| ROIC | 19.31% |
ROA(3y)3.09%
ROA(5y)2.97%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)16.28%
ROIC(5y)15.08%
1.3 Margins
- EDEN's Profit Margin of 17.41% is fine compared to the rest of the industry. EDEN outperforms 69.49% of its industry peers.
- In the last couple of years the Profit Margin of EDEN has declined.
- With an excellent Operating Margin value of 36.88%, EDEN belongs to the best of the industry, outperforming 81.36% of the companies in the same industry.
- In the last couple of years the Operating Margin of EDEN has grown nicely.
- EDEN has a Gross Margin of 91.62%. This is amongst the best in the industry. EDEN outperforms 96.61% of its industry peers.
- EDEN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 36.88% | ||
| PM (TTM) | 17.41% | ||
| GM | 91.62% |
OM growth 3Y3.27%
OM growth 5Y1.67%
PM growth 3Y-2.64%
PM growth 5Y-1.54%
GM growth 3Y0.21%
GM growth 5Y0.18%
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 has been reduced compared to 1 year ago.
- The number of shares outstanding for EDEN has been reduced 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 0.43, we must say that EDEN is in the distress zone and has some risk of bankruptcy.
- With a Altman-Z score value of 0.43, EDEN is not doing good in the industry: 64.41% of the companies in the same industry are doing better.
- The Debt to FCF ratio of EDEN is 7.79, which is on the high side as it means it would take EDEN, 7.79 years of fcf income to pay off all of its debts.
- EDEN's Debt to FCF ratio of 7.79 is in line compared to the rest of the industry. EDEN outperforms 49.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 7.79 | ||
| Altman-Z | 0.43 |
ROIC/WACC2.87
WACC6.72%
2.3 Liquidity
- A Current Ratio of 0.86 indicates that EDEN may have some problems paying its short term obligations.
- With a Current ratio value of 0.86, EDEN is not doing good in the industry: 71.19% of the companies in the same industry are doing better.
- A Quick Ratio of 0.86 indicates that EDEN may have some problems paying its short term obligations.
- EDEN's Quick ratio of 0.86 is on the low side compared to the rest of the industry. EDEN is outperformed by 71.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
- EDEN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 21.39%, which is quite impressive.
- EDEN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.28% yearly.
- Looking at the last year, EDEN shows a small growth in Revenue. The Revenue has grown by 6.05% in the last year.
- The Revenue has been growing by 11.93% on average over the past years. This is quite good.
EPS 1Y (TTM)21.39%
EPS 3Y19.09%
EPS 5Y9.28%
EPS Q2Q%10.11%
Revenue 1Y (TTM)6.05%
Revenue growth 3Y20.63%
Revenue growth 5Y11.93%
Sales Q2Q%4.01%
3.2 Future
- Based on estimates for the next years, EDEN will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.23% on average per year.
- Based on estimates for the next years, EDEN will show a small growth in Revenue. The Revenue will grow by 4.08% on average per year.
EPS Next Y14.21%
EPS Next 2Y4.15%
EPS Next 3Y7.18%
EPS Next 5Y9.23%
Revenue Next Year3.92%
Revenue Next 2Y2.28%
Revenue Next 3Y3.77%
Revenue Next 5Y4.08%
3.3 Evolution
- The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 8.30, the valuation of EDEN can be described as very reasonable.
- EDEN's Price/Earnings ratio is a bit cheaper when compared to the industry. EDEN is cheaper than 79.66% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.25, EDEN is valued rather cheaply.
- A Price/Forward Earnings ratio of 7.99 indicates a rather cheap valuation of EDEN.
- EDEN's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. EDEN is cheaper than 79.66% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, EDEN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.3 | ||
| Fwd PE | 7.99 |
4.2 Price Multiples
- EDEN's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. EDEN is cheaper than 84.75% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, EDEN is valued cheaply inside the industry as 84.75% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.35 | ||
| EV/EBITDA | 3.57 |
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 excellent profitability rating of EDEN may justify a higher PE ratio.
PEG (NY)0.58
PEG (5Y)0.89
EPS Next 2Y4.15%
EPS Next 3Y7.18%
5. Dividend
5.1 Amount
- EDEN has a Yearly Dividend Yield of 6.64%, which is a nice return.
- The stock price of EDEN dropped by -30.08% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
- EDEN's Dividend Yield is rather good when compared to the industry average which is at 1.97. EDEN pays more dividend than 94.92% of the companies in the same industry.
- EDEN's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.64% |
5.2 History
- On average, the dividend of EDEN grows each year by 28.21%, which is quite nice.
Dividend Growth(5Y)28.21%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
- EDEN pays out 63.71% of its income as dividend. This is not a sustainable payout ratio.
- EDEN's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP63.71%
EPS Next 2Y4.15%
EPS Next 3Y7.18%
EDENRED / EDEN.PA FAQ
What is the fundamental rating for EDEN stock?
ChartMill assigns a fundamental rating of 6 / 10 to EDEN.PA.
Can you provide the valuation status for EDENRED?
ChartMill assigns a valuation rating of 8 / 10 to EDENRED (EDEN.PA). This can be considered as Undervalued.
Can you provide the profitability details for EDENRED?
EDENRED (EDEN.PA) has a profitability rating of 8 / 10.
What is the financial health of EDENRED (EDEN.PA) stock?
The financial health rating of EDENRED (EDEN.PA) is 2 / 10.
How sustainable is the dividend of EDENRED (EDEN.PA) stock?
The dividend rating of EDENRED (EDEN.PA) is 7 / 10 and the dividend payout ratio is 63.71%.