- Edenred‘s operating revenue meets estimates with EU625 million, marking a 19% year-on-year increase.
- Revenue for benefits and engagement were EU408 million, surpassing estimates by 0.5% and indicating a 26% annual growth.
- Mobility operating revenue saw a year-on-year increase of 10% to total EU150 million, missing estimates slightly.
- Operating revenue for complementary solutions saw a small increase of 1.5% year-on-year to EU67 million, which was below estimated figures.
- Edenred‘s like-for-like (LFL) operating revenue increased by 16.9%, surpassing the estimate of 14.6%.
- The company’s LFL benefits and engagement operating revenue grew by 17.1%, exceeding the estimated growth of 13.6%.
- Like-for-like mobility operating revenue saw a surge by 23.2%, significantly outperforming the estimated growth of 15.9%.
- Complementary solutions revenue increased by 2.9% on a like-for-like basis, however, this was lower than the estimated growth of 12.5%.
- Edenred‘s total revenue increased by 21% year-on-year to hit the EU685 million mark, surpassing estimates.
- The company’s like-for-like (LFL) revenue saw a healthy growth of 20.5%, beating the estimated 16.7% increase.
- Edenred remains optimistic its organic EBITDA will still be above +12% for the full year.
- Despite challenges, Edenred still foresees a free cash flow to EBITDA conversion rate above 70% for this financial year.
A look at Edenred Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 0 | |
| Dividend | 3 | |
| Growth | 3 | |
| Resilience | 2 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 2.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
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Edenred, a provider of prepaid vouchers for a variety of products and services, presents a mixed long-term outlook based on the Smartkarma Smart Scores. While the company demonstrates decent scores in areas such as Dividend, Growth, and Momentum, there are areas of concern such as Value and Resilience. The Dividend and Growth scores indicate promising aspects for potential investors, suggesting a stable dividend income and growth opportunities. The Momentum score also highlights positive market trends favoring the company. However, the lower scores in Value and Resilience indicate areas that may require attention for long-term sustainability and competitive positioning.
Overall, with a focus on rewarding employees and loyal customers through vouchers for restaurant meals, childcare, and various products and services, Edenred‘s strategic approach aligns with its current Smart Scores. Investors may consider a balanced view of the company’s strengths and weaknesses reflected in the scores to make informed decisions regarding their long-term investment strategies.
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Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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