Pluxee NV - A rough start to an expanding company with stable MOAT ?

After Zeiss, Pluxee is another company I use every day without knowing they were trading. So, listening to the adage "invest in what you know" I decided to have a closer look. Turns out, it is not uninteresting. Is short, Business Model and MOAT: They provide employee benefits (meal vouchers, food cards, well-being, mobility, childcare, rewards). I use them daily for food. Companies pay Pluxee in advance, employees spend the benefits, and merchants accept them. They make money on fees on benefits issued and on interest earned on prepaid cash. Thus, recurring revenue. MOAT is due to 1) Scale (I did not know they were this big - consumers base increases, +12% in last quarter release just for their core product) 2) Switching cost (as of today, they have 100% net retention rate) 3) (as of today) Regulations (benefits are tax-advantaged) It is not super wide, but steady and slowly widening - not maturing. As said, they are specialised in EU but are expanding in emerging markets. This is obviously the big question mark. Brazil is the main focus. Their market is fast growing, employee benefit is only starting to be introduced more systematically and they have a foot in that TAM. Also, because of its regulation friendly business, they can be encouraged to be adopted in difficult economical times. Obviously, difficult economic times is not everywhere equal. But as always, regulatory risk can go tits up - and fast. Fees structure change, policies get retroactive and so on. Lets not forget currency risk. Now, it is a risk. A big one. However, let's not forget it is not an emerging market business. Its core business is still largely European, with still some room to capture adressable market. It would just become much less exciting (not that it is overwhelmingly inticing, but i do find it interesting). Valuation: PE 9.6 forward PE 8.3 EBITDA Margin 36% EPS 1.35 Cash conversion 90% I have not done deep calculation, but I believe it is slightly undervalued at 12.8e per share. Either the market is right to be pessimistic about their execution, for which fair value would be around the 12e mark, or they can show stable numbers all around the globe, for in which case the stock would be undervalued (I'd say around 16e would be fair value) Obviously, no deep maths or deep DCF. I need to dig deeper, and I have set an alert under 11.8 to open a position. What are your thoughts ?