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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
CONSUMER CYCLICALS
- Pluxee is underperforming. We have generally seen value in the €28s but it is +21bps since earnings (vs. €IG +10).
- It's exposed to regulation, French co and there is some overhanging uncertainty on regulation there - outcomes on pause given a hung parliament.
- Edenred is no. 1, Pluxee no. 2 in global employee benefit providers (mainly providing pre-paid voucher cards). Edenred has more operating history as a standalone co and is more diversified - reflected in the 1-notch higher ratings.
- We have generally seen value in diversifying across both to reduce single-firm risk but pick-up into Pluxee in the belly is significant here.
- These are small co's (Edenred €3b, Pluxee €1b) but historically (& still) operating in a fast growing and high margin industry. Regulation should be priced as weighing on that eventually.
- M&A is expected and accounted for with headroom to ratings; Pluxee was on a €1.1b net cash position at the end of Feb, Edenred net 1.5x levered at June.
- Pluxee brings FY24 (to August) on 31st of October, Edenred 3Q (to Sept) on the 24th of October.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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