Firstly, it will be important to keep a close eye on the number of franchises created by Edenred, which may help it to reduce the total assets on its balance sheet.
Firstly, it will be important to keep a close eye on the number of franchises created by Edenred, which may help it to reduce the total assets on its balance sheet.
Similarly, it will be important to keep an eye on the actions taken by the Edenred group to boost its development in certain countries where the market is expanding, such as Brazil, China, India and Russia.
Of course, it will also be important to monitor overall trends in the hospitality and corporate financial services markets.
Competition is, of course, an indicator that should not be overlooked, by closely monitoring the market share of each of the major global players in this sector and the various publications.
Finally, you need to keep a close eye on the foreign exchange market and fluctuations in currency crosses, which can influence the Edenred group's profitability abroad.
The French group Edenred is currently the world leader in its sector of activity. It offers transaction solutions for companies, their employees and merchants. Edenred is best known for its paper-based vouchers that can be used to pay for purchases, food, travel and other products and services, but the company has expanded its activities to include other transaction media such as cards, mobile phones and certain online payment platforms.
Through these various solutions, Edenred enables companies to offer their employees more purchasing power via the works council. But it also enables some of the group's partner retailers to increase their turnover by gaining market share.
The services offered by Edenred can be divided into three main categories according to the type of business concerned:
Today, Edenred's offer reaches no less than 43 million employees, 750,000 companies or local authorities and 1.4 million merchants. Edenred offers these services in more than 42 countries around the world, mainly in Europe, and employs at least 8,000 people.
If the French group Edenred has been able to rise to the first place in the ranking of transactional solutions providers in the world, it is of course not the only one to offer this type of service on an international scale. So it is wise to know which companies are likely to compete with it. Of course, knowing these competitors is not enough to guide you in taking a position on the Edenred share price. To take advantage of this, you need to integrate the information from these companies into your fundamental analysis, taking into account the results of each company, their respective news and the evolution of their market shares.
This financing, management and financial services bank is a subsidiary of the BPCE group resulting from the merger between the Caisse d'Epargne and the Banque Populaire in 2006. It also offers transactional services such as cheques.
Another French company that is overshadowing Edenred. Specialized in collective catering services, this group also offers meal vouchers called "restaurant vouchers".
Finally, we can also mention the company Chèque Déjeuner, which issues vouchers of the same name and is one of Edenred's main competitors in Europe.
As we have quickly seen above, the Edenred group is setting up various partnerships with well-known companies offering services or products, in order to extend the possibilities of using its payment vouchers and transaction services. The more these partnerships are formed, the more interesting its services are for companies and their employees. Here are a few examples of the partnerships recently established by the company:
In 2014, Edenred became a partner of the Europ Assistance group by setting up the Ticket Travel Pro offer, which is an all-in-one integrated solution for employees' expenses during business trips. This payment card, combined with an online booking platform and an expense report management area, includes insurance and assistance services offered by the Europ Assistance group.
In 2017, it is the Midas group that is partnering with the Ticket Travel Pro project as part of its car maintenance and services. The aim of this partnership is to simplify access to the group's vehicle network for company employees.
Finally, also in 2017, Edenred and ProwebCE partnered with the French group Vente-Privée by setting up an offering that includes management and accounting software packages as well as the Meyclub platform, which allows company employees to use funds granted to them each year by their works council on the merchant site.
Before buying Edenred shares or selling this stock online, it is essential to understand how this company can deal with the challenges it will face in the future. To do this, you need to know the strengths and weaknesses of this company in the face of the competition in its sector of activity, as well as the advantages of this stock in the eyes of investors. Let's go over the details of these strengths and weaknesses of Edenred.
First of all, let's take a moment to review the main advantages that the Edenred group has over its competitors, with the following strengths:
As we have just seen, the Edenred group currently has many strengths that should allow it to gain in growth in the future and that can therefore support its stock price. But of course it also has some weaknesses that we propose to discover here in more detail:
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