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Amadeus (OTC) (AMADY)
:AMADY
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Amadeus IT Group, S.A.
(OTC:AMADY)
Rating:75Outperform
Price Target:
$91.00
▲(9.00%Upside)
Amadeus IT Group, S.A. (AMADY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$36.27B
Dividend Yield1.84%
Average Volume (3M)34.40K
Price to Earnings (P/E)26.1
Beta (1Y)0.69
Revenue Growth10.45%
EPS Growth18.41%
CountryUS
Employees20,643
SectorConsumer Cyclical
Sector Strength61
IndustryTravel Services
Share Statistics
EPS (TTM)0.89
Shares Outstanding450,499,000
10 Day Avg. Volume36,994
30 Day Avg. Volume34,403
Financial Highlights & Ratios
PEG Ratio-0.05
Price to Book (P/B)4.69
Price to Sales (P/S)0.00
P/FCF Ratio24.61
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., together with its subsidiaries, operates as a transaction processor for the travel and tourism industry worldwide. The company operates through two segments, Distribution and IT Solutions. The company acts as an international network providing real-time search, pricing, booking, and ticketing services. It also offers travel providers a portfolio of technology solutions, which automate certain mission-critical business processes, such as reservations, inventory management, and departure control. In addition, the company is involved in the provision of software development and definition, distribution, regional support, data processing, intermediation, consulting, installation of industrial machinery and equipment, and information technology services; financial activities; and e-commerce business. It serves providers of travel products and services, such as airlines, airports, hotels, tour operators, insurance companies, road and sea transport companies, travel sellers and brokers, travel buyers, and ground handlers. The company was formerly known as Amadeus IT Holding, S.A. and changed its name to Amadeus IT Group, S.A. in August 2016. Amadeus IT Group, S.A. was founded in 1987 and is headquartered in Madrid, Spain.
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. Earnings Call Summary
Earnings Call Date:May 08, 2025
(Q1-2025)
| % Change Since: 5.51%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Positive
The earnings call highlighted robust revenue and profit growth, driven by strong performance in key segments and successful NDC and AI strategies. However, there were challenges related to volume performance, exchange rate impacts, and increased costs, particularly in North America.Q1-2025 Updates
Positive Updates
Strong Revenue and Profit Growth
Group revenue increased by 9%, operating income and adjusted operating income increased by 10%, with profit and adjusted profit growing by 13% and 12%, respectively.
Positive Performance in Key Segments
Air Distribution revenue grew by 8%, Air IT Solutions revenue grew by 11%, and Hospitality & Other Solutions revenue increased by 11%.
Successful NDC Strategy
Amadeus signed 70 NDC agreements with airlines, including notable brands such as Emirates and Etihad, positioning Amadeus as a leader in NDC technology.
AI and Cloud Integration
Over 70% of applications are now activated in the public cloud, with full migration expected by early 2026, and integration of Gen AI on the platform.
Free Cash Flow Generation
Generated €262 million in free cash flow in the first quarter, indicating strong cash generation capabilities.
Negative Updates
Slight Decline in Volume Performance
Volume performance was somewhat softer than expected, with bookings growing by only 2.5% due to external factors like severe weather conditions and geopolitical events.
Impact of USD/EUR Exchange Rate
The USD/EUR exchange rate volatility is expected to generate a negative impact on performance starting in Q2.
Challenges in North American Market
Booking growth in North America was impacted by U.S. domestic events and less strong market performance.
Increase in Fixed Costs
Fixed costs grew by 12.4%, driven by an increase in resources, particularly in R&D, and higher cloud costs.
CapEx Increase
CapEx increased by 30.9% to support investments in strategic initiatives, potentially impacting short-term cash flow.
Company Guidance
During the Amadeus Q1 2025 results conference call, the company reported a 9% increase in group revenue, with operating income and adjusted operating income both increasing by 10%. Profit and adjusted profit grew by 13% and 12%, respectively, and free cash flow generation amounted to €262 million. The company's leverage stood at 0.8 times net debt-to-last 12 months EBITDA. Air Distribution revenue grew by 8%, with bookings processed through the Amadeus Travel Platform experiencing year-on-year growth of around 3%, and revenue per booking advancing by 5%. Air IT Solutions revenue grew by 11%, and Hospitality & Other Solutions revenue increased by 11%. Amadeus highlighted strong performances across its segments and emphasized the company's focus on becoming the leading aggregator of NDC content. The company maintained its fiscal year 2025 outlook excluding foreign exchange effects despite macroeconomic uncertainties, projecting group revenue growth of 7.4% to 11.4% and EBITDA growth of 5.7% to 11%.Amadeus IT Group, S.A. Financial Statement Overview
Summary
Amadeus IT Group exhibits strong financial performance with notable revenue and profit growth, robust cash flow generation, and a balanced balance sheet. Despite resilience during the pandemic, potential global disruptions and high historical debt levels require careful management.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 |
| EBITDA | 2.35B | 2.13B | 1.64B | 575.90M | 29.10M |
| Net Income | 1.25B | 1.12B | 664.40M | -136.70M | -617.60M |
Balance Sheet | |||||
| Total Assets | 11.78B | 10.80B | 11.71B | 11.18B | 11.70B |
| Cash, Cash Equivalents and Short-Term Investments | 1.13B | 1.06B | 1.99B | 1.82B | 2.48B |
| Total Debt | 3.38B | 3.31B | 4.41B | 4.98B | 5.66B |
| 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
83.49
Price Trends
80.80
Positive
78.21
Positive
74.51
Positive
Market Momentum
0.44
Negative
55.81
Neutral
76.99
Neutral
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 83.49 is above the 20-day moving average (MA) of 81.78, above the 50-day MA of 80.80, and above the 200-day MA of 74.51, indicating a bullish trend. The MACD of 0.44 indicates Negative momentum. The RSI at 55.81 is Neutral, neither overbought nor oversold. The STOCH value of 76.99 is Neutral, 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 (67)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $189.25B | 36.19 | -146.32% | 0.67% | 9.47% | 20.70% | |
76 Outperform | $189.25B | 36.19 | -146.32% | 0.67% | 9.47% | 20.70% | |
75 Outperform | $36.27B | 26.09 | 25.80% | 1.84% | 10.45% | 18.41% | |
75 Outperform | $22.60B | 20.95 | 119.16% | 0.90% | 5.57% | 61.19% | |
75 Outperform | $22.60B | 20.95 | 119.16% | 0.90% | 5.57% | 61.19% | |
73 Outperform | $39.91B | 17.96 | 12.49% | 0.48% | 16.23% | 56.05% | |
73 Outperform | $39.91B | 17.96 | 12.49% | 0.48% | 16.23% | 56.05% | |
68 Neutral | $9.10B | 113.33 | 8.45% | ― | 25.02% | -56.66% | |
68 Neutral | $9.10B | 113.33 | 8.45% | ― | 25.02% | -56.66% | |
67 Neutral | ¥250.86B | 13.20 | 6.48% | 2.78% | 5.05% | -11.98% | |
56 Neutral | $1.30B | ― | 20.22% | ― | 2.56% | 69.08% | |
56 Neutral | $1.30B | ― | 20.22% | ― | 2.56% | 69.08% |
* Consumer Cyclical Sector Average
Performance Comparison
AMADY
Amadeus IT Group, S.A.
82.67
16.43
24.80%
TCOM
Trip.com Group Sponsored ADR
60.54
11.77
24.13%
TCOM
Trip.com Group Sponsored ADR
60.54
11.77
24.13%
EXPE
Expedia
177.55
48.60
37.69%
EXPE
Expedia
177.55
48.60
37.69%
MMYT
Makemytrip
94.56
5.14
5.75%
MMYT
Makemytrip
94.56
5.14
5.75%
BKNG
Booking Holdings
5,713.33
1,754.06
44.30%
BKNG
Booking Holdings
5,713.33
1,754.06
44.30%
SABR
Sabre
3.32
0.35
11.78%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.