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Amadeus (OTC) (AMADY)
:AMADY
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Amadeus IT Group, S.A.
(OTC:AMADY)
77Outperform
Amadeus IT Group, S.A. (AMADY) vs. S&P 500 (SPY)
Market Cap
$33.23B
Dividend Yield1.33%
Average Volume (3M)2.13K
Price to Earnings (P/E)24.5
Beta (1Y)0.88
Revenue Growth12.93%
EPS Growth22.91%
CountryUS
Employees20,643
SectorConsumer Cyclical
Sector Strength52
IndustryTravel Services
Share Statistics
EPS (TTM)3.12
Shares Outstanding450,499,000
10 Day Avg. Volume0
30 Day Avg. Volume2,135
Financial Highlights & Ratios
PEG Ratio1.07
Price to Book (P/B)N/A
Price to Sales (P/S)7.07
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Amadeus IT Group, S.A. Business Overview & Revenue Model
Company DescriptionAmadeus IT Group, S.A. (AMADY) is a leading global travel technology company that provides critical software solutions and IT services to the travel and tourism industry. The company operates across various sectors, including airlines, airports, hotels, travel agencies, and railways. Its core products and services include reservation and inventory management systems, passenger service systems, and distribution solutions that enable travel providers to manage their operations and enhance customer experiences.
How the Company Makes MoneyAmadeus IT Group, S.A. generates revenue primarily through its two main business segments: Distribution and IT Solutions. The Distribution segment earns money by providing a global distribution system (GDS) that connects travel providers such as airlines and hotels with travel agencies and other intermediaries, facilitating the sale of travel services. Amadeus earns fees for each booking made through its system. The IT Solutions segment generates revenue by offering technology services directly to travel providers, including reservation systems, departure control systems, and operational management solutions. These services are often delivered through long-term contracts, providing a stable revenue stream. Significant partnerships with major airlines, hotel chains, and other travel entities further bolster Amadeus's earnings by expanding its reach and integration within the travel ecosystem.
Amadeus IT Group, S.A. Financial Statement Overview
Summary
Amadeus IT Group exhibits strong financial performance with significant revenue and profit growth, robust cash flow generation, and a balanced balance sheet. The company effectively navigated the pandemic downturn, showcasing resilience and adaptability. It should remain vigilant against potential global disruptions and manage its debt levels prudently.Income Statement
Amadeus IT Group has shown significant revenue growth, with a notable increase in Total Revenue from $2.67 billion in 2021 to $6.14 billion in 2024. The Gross Profit Margin in 2024 is approximately 43.23%, which indicates solid profitability. The Net Profit Margin improved significantly, reaching 20.41% in 2024. The company also demonstrated strong EBIT and EBITDA margins, indicating effective cost management and operational efficiency. However, the dip in revenue during the pandemic in 2020 highlights potential vulnerability to global disruptions.82
Very Positive
Balance Sheet
The company maintains a moderate Debt-to-Equity Ratio of 0.67 in 2024, suggesting a balanced financial structure. The Return on Equity (ROE) is robust at 24.75% in 2024, reflecting effective utilization of equity capital to generate profits. The Equity Ratio is stable at around 42.96%, indicating a healthy equity position relative to total assets. However, the high debt levels in 2020 and 2021 pose a risk if similar economic challenges recur.75
Positive
Cash Flow
Amadeus IT Group has achieved positive Free Cash Flow growth, with significant jumps from $176.1 million in 2021 to $1.36 billion in 2024, highlighting improved cash generation capabilities. The Operating Cash Flow to Net Income ratio is strong, suggesting efficient conversion of profits into cash. The company also maintains a solid Free Cash Flow to Net Income ratio, underscoring effective cash management. However, fluctuations in Investing and Financing Cash Flows indicate variability in capital allocation strategies.78
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 6.14B | 5.44B | 4.49B | 2.67B | 2.17B | Gross Profit |
| 2.65B | 2.41B | 1.87B | 834.90M | 299.80M | EBIT |
| 1.63B | 1.41B | 962.70M | -106.00M | -800.30M | EBITDA |
| 2.35B | 2.13B | 1.64B | 575.90M | 29.10M | Net Income Common Stockholders |
| 1.25B | 1.12B | 664.40M | -136.70M | -617.60M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 1.13B | 1.06B | 1.99B | 1.82B | 2.48B | Total Assets |
| 11.78B | 10.80B | 11.71B | 11.18B | 11.70B | Total Debt |
| 3.38B | 3.31B | 4.41B | 4.98B | 5.66B | Net Debt |
| 2.33B | 2.27B | 2.98B | 3.85B | 4.11B | Total Liabilities |
| 6.72B | 6.31B | 7.13B | 7.44B | 7.94B | Stockholders Equity |
| 5.06B | 4.48B | 4.58B | 3.75B | 3.74B |
| Cash Flow | Free Cash Flow | |||
| 1.36B | 1.19B | 874.10M | 176.10M | -468.50M | Operating Cash Flow |
| 2.15B | 1.79B | 1.44B | 636.30M | 33.00M | Investing Cash Flow |
| -1.15B | 4.50M | -493.30M | -205.50M | -1.47B | Financing Cash Flow |
| -990.10M | -2.19B | -640.10M | -865.80M | 2.46B |
Amadeus IT Group, S.A. Technical Analysis
Positive
76.16
Price Trends
75.41
Positive
73.00
Positive
70.58
Positive
Market Momentum
0.80
Positive
49.56
Neutral
7.08
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AMADY, the sentiment is Positive. The current price of 76.16 is below the 20-day moving average (MA) of 78.30, above the 50-day MA of 75.41, and above the 200-day MA of 70.58, indicating a neutral trend. The MACD of 0.80 indicates Positive momentum. The RSI at 49.56 is Neutral, neither overbought nor oversold. The STOCH value of 7.08 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AMADY.
Amadeus IT Group, S.A. Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $76.10B | 28.89 | 31.95% | ― | 11.95% | -44.02% | |
77 Outperform | $33.23B | 24.50 | 26.73% | 1.33% | 12.93% | 22.91% | |
75 Outperform | $21.66B | 18.58 | 79.84% | ― | 6.64% | 69.85% | |
72 Outperform | $151.18B | 26.68 | -146.32% | 0.76% | 11.11% | 47.03% | |
61 Neutral | $1.99B | 858.79 | 0.55% | ― | 2.63% | -58.77% | |
59 Neutral | $12.17B | 11.04 | -1.10% | 3.77% | 1.26% | -19.70% | |
40 Underperform | $1.08B | ― | 20.22% | ― | 4.19% | 53.84% |
* Consumer Cyclical Sector Average
Performance Comparison
AMADY
Amadeus IT Group, S.A.
77.14
15.64
25.43%
EXPE
Expedia
167.70
36.29
27.62%
BKNG
Booking Holdings
4,685.75
1,149.20
32.49%
TRIP
TripAdvisor
14.03
-13.69
-49.39%
SABR
Sabre
2.60
0.01
0.39%
ABNB
Airbnb
121.18
-38.93
-24.31%
Amadeus IT Group, S.A. Earnings Call Summary
Earnings Call Date: Feb 28, 2025 | % Change Since: 5.30% | Next Earnings Date: May 8, 2025
Earnings Call Sentiment Positive
The earnings call highlighted a strong financial performance with significant growth across multiple segments and strategic advancements in cloud and AI technologies. However, there were challenges with booking growth and increased costs related to cloud transformation. The sentiment remains broadly positive with strong forward guidance, but there are areas of concern that need addressing.Highlights
Strong Financial Performance
Revenues grew by 13%, EBITDA increased by 13%, operating income expanded 18%, and adjusted profit grew by 20% in fiscal year 2024.
Air Distribution Growth
Air distribution grew by 11%, with accelerated revenue growth of 14% in the fourth quarter. Bookings processed experienced year-on-year growth of 9%.
Air IT Solutions Success
Revenue grew by 16% in '24, supported by air traffic growth and new customer implementations. Air France KLM contracted for Amadeus Neveo, continuing the trend set by British Airways, Saudi, and Finnair.
Hospitality and Other Solutions Expansion
Revenue increased by 12%, with notable deployments such as MGM Resorts International completing the deployment of ACRS.
Cloud Transformation Progress
60% of applications are now activated in the public cloud, with a completion target by early '26. AI and machine learning are key focuses for improving user experience and operations.
Share Repurchase Program
The Board of Directors agreed to launch a share repurchase program for a maximum investment amount of $1.3 billion over the next 12 months.
Lowlights
Challenges in Booking Growth
While bookings grew 4.7% in 2024, the growth was impacted by geopolitical events and cancellations, with a normalized estimate of 7.9% growth.
Hospitality Segment Slower Growth
Hospitality revenue growth was slightly behind expectations, primarily due to seasonality and delays in payments re-acceleration in certain regions.
Impact of Cloud Transformation Costs
Higher cloud transaction processing and migration costs affected fixed cost growth and EBITDA margins.
Company Guidance
In the 2024 fiscal year, Amadeus reported significant financial growth, achieving a 13% increase in revenues, a 13% rise in EBITDA, an 18% expansion in operating income, and a 20% growth in adjusted profit. The company generated $1.3 billion in free cash flow, marking a 16% increase from the previous year, and ended the year with a leverage of 0.9 times EBITDA. Air distribution revenue grew by 11%, with a 14% year-on-year increase in Q4 alone. The Air IT Solutions segment saw a 16% revenue increase, driven by air traffic growth and new customer implementations. Meanwhile, Hospitality and Other Solutions revenue increased by 12%. Amadeus is also advancing its cloud transformation, with 60% of its applications now in the public cloud, aiming for completion by early 2026. For 2025, Amadeus projects group revenue growth of 9% to 13%, with EBITDA growth of 7% to 12%, and expects to generate between $1.27 billion and $1.35 billion in free cash flow.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.