Jean-Pascal Rolandez of The L.T. Funds presented his investment thesis on Edenred (France: EDEN) at European Investing Summit 2025.
Thesis Summary
Edenred is a world leader in specific use payment solutions. The company originated the restaurant voucher in France and operates on a commission-based model, charging both client issuers and merchant partners. After being spun off from Accor in 2010, Edenred expanded to become the sector leader, operating in 45 countries with a network of over 1 million client issuers, 2 million merchant partners, and 60 million users. The company has diversified beyond vouchers into management services and controlled payments.
The investment thesis highlights a strong business model, a global network, and a management team described as very good, financially minded, and excellent at execution. The company has a strong post-Covid track record, showing +21% sales p.a. and +25% EBIT. While originating in France, the country now represents only 12% of OP. The business demonstrates high cash flow generation, with FCF estimated at approximately 30% of sales.
The opportunity exists because the company is viewed as a “fallen star” due to regulatory uncertainty. This risk is present in all geographies, with three key countries specifically under review. Other threats include potential new reforms, unfavorable litigation, and fines from competition authorities. Weaknesses include high tax rates (31-32%), exposure to Latin America (29% of EBIT), and the presence of goodwill and negative equity.
The valuation is attractive due to the regulatory overhang. Capital Group has taken a ~10% stake, with seven other US investors holding 5+%. The shares recently traded at 4.1x EV to 2026E EBITDA, with a dividend yield of ~6%.
Disclaimer
European Investing Summit 2025 was held from October 28 to November 3, 2025. The content of this website is not an offer to sell or the solicitation of an offer to buy any security. The content is distributed for informational purposes only and should not be construed as investment advice or a recommendation to sell or buy any security or other investment, or undertake any investment strategy. There are no warranties, expressed or implied, as to the accuracy, completeness, or results obtained from any information set forth on this website. BeyondProxy’s officers, directors, employees, and/or contributing authors may have positions in and may, from time to time, make purchases or sales of the securities or other investments discussed or evaluated herein.
Slides
Let’s take a closer look.
