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Edenred (ENXTPA:EDEN) Valuation Check After New Daimler Truck Electric Charging Partnership

Simply Wall St · 2d ago

Edenred (ENXTPA:EDEN) just moved deeper into e mobility, teaming up with Daimler Truck to provide the software backbone for Europe focused TruckCharge, a semi public charging network for heavy electric vehicles.

See our latest analysis for Edenred.

Even with this strategically timed push into e mobility, Edenred’s 1 year total shareholder return of minus 36.7% and 3 year total shareholder return of minus 60.1% show longer term sentiment has been weak. However, the recent 7 day share price return of 4.2% hints that momentum may be tentatively stabilising rather than breaking higher.

If this move in fleet electrification has you thinking more broadly about transport, it could be a good moment to explore auto manufacturers for other potential ideas.

So with earnings still growing and the share price trading at a steep discount to analyst targets and intrinsic value estimates, is Edenred a contrarian opportunity in e mobility, or is the market rightly sceptical about future growth?

Most Popular Narrative: 42.9% Undervalued

With Edenred closing at €18.60 against a narrative fair value of €32.55, the disconnect in expectations is striking and sets up a bold outlook.

The analysts have a consensus price target of €39.715 for Edenred based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of €49.0, and the most bearish reporting a price target of just €29.3.

Read the complete narrative.

Want to see how factors such as steady expansion, rising margins, and changes in future earnings multiples can converge on a value that differs from today’s price?

Result: Fair Value of €32.55 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, potential French taxation changes and ongoing regulatory uncertainty could compress margins and temper growth, which may challenge today’s optimistic valuation narrative.

Find out about the key risks to this Edenred narrative.

Build Your Own Edenred Narrative

If you see the story differently or want to dig into the numbers yourself, you can build a personalised view in just minutes using Do it your way.

A great starting point for your Edenred research is our analysis highlighting 4 key rewards and 4 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary 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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.