Position Increase: Edenred (EDEN.PA)

I'm increase my position in Edenred (EDEN.PA) by 100%, effective as of today’s close (January 2nd).

I was looking to add to my Edenred position at an attractive price. The stock has been trading in a range around 18–19, and I don’t want to miss the next move higher. I’m therefore planning to double my holding, which would take Edenred to 8.6% of the portfolio after the allocation.

In this recent video, they also discuss Edenred and the current setup:

Key highlights from the presentation:

• Global scale and network effects: Edenred is a leader in “specific-use payment solutions,” operating across 45 countries with ~1m client issuers, ~2m merchants, and ~60m users, supported by a commission-based model.

• Strong operating momentum post-Covid: The thesis points to a post-Covid track record of ~+21% sales p.a. and ~+25% EBIT.

• High cash generation: Free cash flow is described as exceptionally strong, at roughly ~30% of sales, alongside an expectation of durable high single-digit growth.

• Why the market is cautious (and why valuation may be compelling): The “fallen star” framing is driven by regulatory uncertainty, including three main countries under review, with related risks (reforms, litigation outcomes, competition authority fines). The presentation cites valuation support around ~4.1x EV/EBITDA (2026E) and a ~5.8–6% dividend yield, plus notable ownership (e.g., Capital Group ~10% stake).

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