Edenred SA, the French provider of transactional solutions for companies, employees, and merchants, disappeared from the PINK exchange in February 2022. While delistings are relatively commonplace, there's something peculiar about Edenred's departure that hasn't been widely discussed: the company's financial data paints a picture of robust health, even as it chose to step away from the American market.

This begs the question: why would a company with a market capitalization of over $12 billion, a 21.3% quarterly revenue growth year-over-year, and a healthy profit margin of nearly 20% choose to delist? The traditional reasons for delisting, such as avoiding regulatory burdens or struggling to meet listing requirements, simply don't seem to apply in Edenred's case.

Digging deeper into the financials, we see a consistent pattern of positive earnings per share growth since 2011, indicating a company adept at navigating economic cycles and consistently delivering value to shareholders. The 2021 financials reveal a company with strong liquidity, a revenue of $2.1 billion, and $1.4 billion in cash on hand. This isn't a company struggling to stay afloat. This is a company thriving.

So, what's the real story?

One hypothesis is that Edenred is strategically consolidating its focus on its core markets. While it operates globally, its primary strength lies in Europe and Latin America. The American market, with its unique regulatory landscape and intense competition, might have been seen as a distraction from its core competencies. Delisting could be a way to streamline operations and maximize resources for growth in its dominant regions.

Another, perhaps more intriguing, possibility is that Edenred's delisting is a prelude to a larger move. The company has been steadily expanding its digital footprint and investing heavily in technology, evident in the appointment of Dave Ubachs as Executive VP of Global Technology.

Could Edenred be gearing up for a major acquisition or a strategic pivot towards a more tech-centric business model?

Consider this: Edenred's solutions already touch a wide range of everyday transactions, from employee benefits and fuel cards to incentives and rewards programs. Imagine the possibilities if the company leveraged its existing network and expertise to build a comprehensive digital platform for a global audience. A platform that could connect consumers, businesses, and governments in a seamless and secure manner.

While this is speculative, it's a hypothesis grounded in Edenred's financial performance and strategic direction. A company with such robust financials doesn't simply vanish from a market without a compelling reason. The "Ghost in the Machine," as we might call it, could be a sign of Edenred retooling itself for a bolder play in the global digital economy.

To further investigate this, we need to look beyond the numbers. Analyzing Edenred's recent acquisitions, its partnerships with fintech players, and its public statements regarding its digital strategy will offer valuable clues.

Edenred's Earnings Per Share (2011-2021)