Amadeus IT Group, S.A. (AMADY) AI Stock Analysis

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Amadeus IT Group, S.A.

(OTC:AMADY)

77Outperform

Amadeus IT Group demonstrates robust financial performance with significant revenue growth and resilience post-pandemic. The stock's technical indicators show strong upward momentum, though caution is advised due to overbought signals. Valuation metrics suggest it is fairly valued, while the earnings call provides a positive outlook with some areas for improvement. Overall, the stock is well-positioned for continued growth but should be monitored for potential pullbacks.

Amadeus IT Group, S.A. (AMADY) vs. S&P 500 (SPY)

Market Cap

$34.14B

Dividend Yield1.3%

Average Volume (3M)2.55K

Price to Earnings (P/E)25.4

Beta (1Y)0.70

Revenue Growth12.93%

EPS Growth22.91%

CountryUS

Employees20,643

SectorConsumer Cyclical

Sector Strength57

IndustryTravel Services

Share Statistics

EPS (TTM)3.12

Shares Outstanding450,499,000

10 Day Avg. Volume7,659

30 Day Avg. Volume2,553

Financial Highlights & Ratios

PEG Ratio1.11

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 global leader in travel technology solutions, providing comprehensive IT services to the travel and tourism industry. The company operates in sectors such as airlines, hotels, railways, and travel agencies, offering a broad spectrum of products and services including distribution systems, IT solutions for reservations, inventory management, and departure control systems, as well as digital and operational solutions designed to enhance customer experiences and optimize operational efficiency.

How the Company Makes MoneyAmadeus IT Group, S.A. generates revenue primarily through its two key business segments: Distribution and IT Solutions. The Distribution segment earns money by charging fees for facilitating bookings between travel providers and travel agencies using its global distribution system (GDS). This system connects travel agencies to airlines, hotels, car rental companies, and other travel suppliers, enabling them to book travel services on behalf of their customers. The IT Solutions segment, on the other hand, provides technology services directly to travel providers, such as airlines and airports, which pay for access to a range of IT systems for areas like reservations, inventory management, and departure control. These solutions help travel providers improve efficiency and enhance the customer experience. Additionally, Amadeus partners with various industry stakeholders to ensure its systems are seamlessly integrated and continuously updated to meet evolving market demands.

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

Very Positive

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.

Balance Sheet

Positive

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.

Cash Flow

Positive

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.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
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

Technical Analysis Sentiment

Positive

Last Price78.85

Price Trends

50DMA

76.12

Positive

100DMA

73.55

Positive

200DMA

71.12

Positive

Market Momentum

MACD

0.05

Negative

RSI

54.69

Neutral

STOCH

96.91

Negative

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 78.85 is above the 20-day moving average (MA) of 76.42, above the 50-day MA of 76.12, and above the 200-day MA of 71.12, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 54.69 is Neutral, neither overbought nor oversold. The STOCH value of 96.91 is Negative, 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 (60)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AMADY	77 Outperform	$34.14B	25.37	26.73%	1.30%	12.93%	22.91%
MMYT	75 Outperform	$10.75B	45.97	23.09%	―	28.51%	367.34%
BKNG	73 Outperform	$145.62B	25.70	-146.32%	0.78%	11.11%	47.03%
EXPE	71 Outperform	$18.90B	16.39	79.84%	0.27%	6.64%	69.85%
TCOM	66 Neutral	$37.13B	16.52	12.91%	0.51%	18.12%	69.44%
Sector *	60 Neutral	$6.56B	11.42	3.23%	4.27%	2.37%	-21.19%
SABR	46 Neutral	$787.58M	―	20.22%	―	4.19%	53.84%

* Consumer Cyclical Sector Average

Performance Comparison

AMADY

Amadeus IT Group, S.A.

78.85

16.68

26.83%

TCOM

Trip.com Group Ltd. Sponsored ADR

56.87

6.62

13.17%

EXPE

Expedia

152.93

18.19

13.50%

MMYT

Makemytrip

104.15

38.95

59.74%

BKNG

Booking Holdings

4,598.08

1,093.36

31.20%

SABR

Sabre

2.04

-0.72

-26.09%

Amadeus IT Group, S.A. Earnings Call Summary

Earnings Call Date: Feb 28, 2025 | % Change Since: 9.01% | 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.