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EdenRed’s Q3 FY23 trading update was slightly ahead of the street and our expectations. Operating revenue saw robust growth backed by double-digit progressions across all the regions. Consequently, the management tightened the full year EBITDA guidance to the upper half of the €1.02-1.09bn range. Nevertheless, the share price remained under pressure (-4.47% at the time of writing) due to the uncertainty regarding the regulatory environment in France. We will slightly increase our estimates, but
Companies: Edenred (EDEN:EPA)Edenred SA (EDEN:PAR)
AlphaValue
EdenRed’s share price came under pressure yesterday (closed -11%), after the French Small and Medium Enterprise (SME) minister announced the possibility of capping the commission paid by restaurants to meal voucher providers. While it is not a good news for EdenRed, which sources c.16% of its revenue from France, the share price reaction could be overdone as the cap represents a low-mid single-digit headwind to the group’s top line. We retain our cautious stance.
EdenRed reported H1 2023 results slightly ahead of the consensus and our estimates on sales and profitability. H1 operating revenue increased by 20% on a LFL basis, while other revenue doubled on the back of higher interest rates. However, the unimpressive EBITDA guidance, coupled with higher interest expenses in H2 given the increase in debt to fund the Reward Gateway acquisition, has weighed on investor sentiment (share price down -2.26% at the time of writing). We maintain our cautious view o
EdenRed announced the acquisition of Reward Gateway, a leading employee engagement platform provider, for £1.15bn (or €1.3bn). The deal is in line with the management’s Beyond Food strategy, and is expected to enhance the group’s employee engagement solutions portfolio, while also providing access to new geographies. It is an all cash deal and, hence, is EPS accretive from 2024. Overall, a positive development from a strategy perceptive.
EdenRed reported better-than-expected Q1 2023 sales figures. Operating revenue continued to benefit from the increased face value of vouchers underpinned by the inflationary environment, while higher interest led to a tripling of revenue earned on the invested float. The decrease in fuel prices however impacted the Fleet & Mobility segment. The management reiterated the targets for FY23. We will increase our estimates but are likely to maintain our cautious stance on the stock.
Edenred ended FY22 with a strong operational performance, but weak net income due to higher financial expenses. For FY23, management confirmed the strategic targets, which are largely in line with consensus. No wonder the share price reaction remained muted (+0.7% at the time of writing). We will increase our estimates to incorporate the strong FY22 results, but are likely to maintain our cautious view on the stock.
EdenRed reported Q3 FY22 revenue ahead of the street and our own expectations. Operating revenue increased 19.1% yoy on lfl basis, underpinned by strong momentum across businesses and geographies. The group continues to benefit from favorable economic conditions wherein inflation and increased interest rates continue to drive growth in employee benefit solutions and other revenue, respectively. We will revise upwards our estimates, but retain our cautious stock recommendation.
EdenRed reported a strong H1 22 performance, delivering a headline beat on Q2 and H1 22 figures. Lfl revenue growth benefited from inflation tailwinds and expansion in market share underpinned by digital offerings. The H1 profitability margin improved with management raising the EBITDA growth guidance. We will increase our estimates slightly but remain cautious on the stock.
EdenRed announced better-than-expected Q1 results with total revenue coming in slightly ahead of the street expectations. LFL sales increased 15.3% yoy, ahead of the 12.45% consensus estimate, as the group benefitted from a favorable macroeconomic environment with inflation and increasing fuel prices along with continued adoption of its new and existing products. Overall, a strong update. We have revised our estimates slightly upwards, but retain our cautious stock recommendation.
Edenred’s FY21 sales and net profit were in line with consensus and our expectations. However, the FCF was a beat, driven by a strong Q4 performance that led to an increase in the float, despite the higher use of benefits by employees in 2021 vs 2020. The EBITDA margin returned to the pre-pandemic level, prompting management to reiterate its objectives set in the “Next Frontier” 2019-22 plan. Overall, the results were strong and we maintain our positive stance on the stock.
Edenred reported its Q3 FY2021 sales update, slightly ahead of market expectations. Operating revenue grew c.13% yoy underpinned by a recovery in business activity, and the rollout of new and existing solutions. Backed by the strong sales performance in 9M FY2021 to date, management upgraded its EBITDA guidance for the year. Overall, a strong update. We will revise upwards our estimates and target price, but retain our cautious stock recommendation.
Research Tree provides access to ongoing research coverage, media content and regulatory news on Edenred SA. We currently have 0 research reports from 4 professional analysts.
In the most difficult market conditions in more than a decade, Foxtons after adopting new strategic priorities, delivered an impressive turnaround in performance, and regained its position as London’s leading Estate Agent. Our analysis recognises the logic which underlies current consensus, see scope for upgrades and justifies valuations materially above current values.
Companies: Foxtons Group Plc
Zeus Capital
The focus of Hardman & Co Research is on the nine quoted Infrastructure Investment Companies (IICs) and on the 22 Renewable Energy Infrastructure Funds (REIFs): the stocks analysed are all members of the Association of Investment Companies (AIC). We are updating our publication of January 2023, assessing both the lacklustre share price performances during 2023 and the key issues, including interest rates, inflation and power prices. As a 31-strong group, its combined market capitalisation is no
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Hardman & Co
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Cavendish
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Shore Capital
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Canaccord Genuity
Today's announcement from JIM reflects a year which saw challenges both in underlying terms and in relation to the ongoing Section 166 process. Trading volumes have remained under pressure against a choppy economic backdrop. Voluntary requirement (VREQ) restrictions placed on “Model B” clients have led to a reduction in client numbers in this category, although numbers have remained stable since the Q3 completion of assessments. The company did benefit from rising interest rates, a significant p
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WHIreland
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Gresham House Energy Storage Fund (GRID) is the largest UK fund investing in utility-scale battery energy storage systems (BESS). A recent sharp decline in gas prices, a ‘disappointing’ start to the Energy System Operator’s (ESO’s) new energy trading platform and systemic delays connecting completed projects to the national grid have raised concerns about the revenue generating capacity of the BESS sector. This has placed significant downward pressure on the share prices of GRID and others in th
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Edison
The new strategic vision set out by the CEO is gaining significant momentum, driven by investment in staff and in best-in-class bespoke IT and data platforms, and implies that medium-term targets are now coming into focus. Market share is being gained in all divisions, which is likely to be boosted if the sales market stabilises in 2024. We have modestly raised forecasts and our valuation to 132p/share and believe that if interest rates stabilise or ease further, there are upside risks to our fo
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Liberum
AUCTUS PUBLICATIONS ________________________________________ ADX Energy (ADX AU)C; target price of A$1.00 per share: Logging results at Welchau further derisk the discovery – The logging program has confirmed open fracture networks and vuggy porosity (matrix porosity) essential for well productivity coincident with hydrocarbon shows between 1346 m and 1702 m measured depth. This represents 356 m of gross interval across three interpreted lithological sequences. This compares with only 115 m of l
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Auctus Advisors
ATT offers significantly discounted exposure to the technology sector…
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Kepler | Trust Intelligence
Murray International Trust’s (MYI’s) managers are transitioning smoothly from a team of three to two, ahead of Bruce Stout’s retirement at the end of June 2024. The two remaining managers, Martin Connaghan and Samantha Fitzpatrick, have worked closely with Stout since 2001, so MYI’s shareholders can have confidence that it will be ‘business as usual’ in H224 and beyond. Regardless of the market environment, the managers strive to fulfil their objectives of generating income and capital growth hi
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HgCapital Trust (HgT) posted an 11.1% NAV total return in FY23 (based on final audited numbers), which allowed it to sustain strong five- and 10-year returns of 20.4% and 18.4% pa, respectively. This has been mostly driven by robust earnings momentum across its portfolio. HgT defied the tough private equity exit environment, generating £345.9m of total realisation proceeds excluding carried interest in FY23. Moreover, it has a healthy commitment coverage ratio of 73% (based on current pro forma
Companies: HGCapital Trust PLC
Triple Point Social Housing REIT (SOHO) reported a robust FY23 financial performance. Benefiting from inflation-linked rental growth and improving rent collection, DPS is once again covered on a run-rate basis, and we expect further progress. Operational initiatives included the roll-out of the new lease clause and launch of the eco-retrofit pilot project.
Companies: Triple Point Social Housing REIT PLC
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