Operating Margin

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Price: 18.815 EUR -0.5% Market Closed

Market Cap: 4.6B EUR

36.9%

Improving

by 1.2%

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

36.9%

Operating Income

€1.1B

Revenue

€2.9B

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

36.9%

Operating Income

€1.1B

Revenue

€2.9B

Peer Comparison

Country		Company	Market Cap	Operating Margin
FR	E	Edenred SE PAR:EDEN	4.4B EUR	Loading...
US		Visa Inc NYSE:V	623.4B USD	Loading...
US		Mastercard Inc NYSE:MA	472.9B USD	Loading...
US		Automatic Data Processing Inc NASDAQ:ADP	104.5B USD	Loading...
US		PayPal Holdings Inc NASDAQ:PYPL	53.6B USD	Loading...
NL		Adyen NV AEX:ADYEN	45.1B EUR	Loading...
US		Paychex Inc NASDAQ:PAYX	38.6B USD	Loading...
US		Fiserv Inc NYSE:FI	34.3B USD	Loading...
US		Fidelity National Information Services Inc NYSE:FIS	31.8B USD	Loading...
ES		Amadeus IT Group SA MAD:AMS	25B EUR	Loading...
US		Broadridge Financial Solutions Inc NYSE:BR	24.6B USD	Loading...

Market Distribution

Min	-17 526.7%
30th Percentile	1.3%
Median	6.1%
70th Percentile	11.5%
Max	89 700%

Other Profitability Ratios

Edenred SE
Glance View

Economic Moat

None

Market Cap

4.6B EUR

Industry

Technology

Edenred SE, a notable player on the global stage, carved its niche by revolutionizing employee benefits and corporate payment systems. Emerging from its roots as the Ticket Restaurant meal voucher business, Edenred has embarked on a path of digital transformation, setting the tone for modern corporate benefits and prepaid corporate services. Headquartered in Issy-les-Moulineaux, France, the company leverages its expertise in transactional solutions to serve three primary business lines: employee benefits, fleet & mobility solutions, and complementary solutions such as corporate payments and public social programs. With technology at its core, Edenred has adeptly transformed itself into a digital ecosystem, using proprietary mobile and online platforms to streamline transactions between employees, employers, and affiliated merchants. The company's revenue model hinges on a unique approach that blends fixed and variable fees for services rendered across its network. Employers typically pay a percentage fee based on the volume of vouchers issued to employees, which are then redeemed at participating merchants for specified services and goods. Edenred earns an additional slice of revenue from transaction fees, paid by merchants who accept the vouchers. This compelling business model not only enhances transactional efficiency but also creates a virtuous cycle of demand among corps and retailers—employers use the vouchers to boost employee satisfaction, while merchants benefit from incremental sales driven by targeted spenders. Edenred’s innovative financial solutions position it as a facilitator of seamless economic activity—a role that has allowed it to flourish in over 46 countries.

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What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

The AI Assistant may sometimes provide inaccurate information.

Make your own investment decisions or consult a licensed financial advisor.

Edenred SE
F:QSV

Peer Comparison

Market Distribution

Other Profitability Ratios

Edenred SE
Glance View

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Edenred SE F:QSV