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

• Market Cap: $32.03B
• Dividend Yield: 1.56%
• Average Volume (3M): 3.63K
• Price to Earnings (P/E): 21.6
• Beta (1Y): 0.59
• Revenue Growth: 10.25%
• EPS Growth: 14.23%
• Country: US
• Employees: 20,643
• Sector: Technology
• Sector Strength: 88
• Industry: Travel Services
• EPS (TTM): 0.97
• Shares Outstanding: 450,499,000
• 10 Day Avg. Volume: 2,958
• 30 Day Avg. Volume: 3,629
• PEG Ratio: 1.65
• Price to Book (P/B): 6.05
• Price to Sales (P/S): 4.99
• P/FCF Ratio: 22.57
• Enterprise Value/Market Cap: 1.24
• Enterprise Value/Revenue: 6.17
• Enterprise Value/Gross Profit: 13.08
• Enterprise Value/Ebitda: 15.84
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: $77.00 ▲(5.28% Upside)

Amadeus IT Group's overall stock score is driven by strong financial performance and positive earnings call sentiment, highlighting strategic growth and resilience. However, technical indicators suggest short-term bearish trends, and valuation metrics indicate a fair but not compelling investment case. The company's ability to navigate market challenges and leverage strategic advancements in AI and hospitality are key strengths.

Positive Factors

Revenue Growth

Consistent revenue and EBIT growth indicate robust financial performance and effective business operations, supporting long-term stability.

Strategic Partnerships

Securing strategic partnerships enhances market reach and strengthens competitive positioning, fostering sustainable growth.

Investment in R&D

Significant R&D investment in AI and cloud tech positions Amadeus as an innovator, driving future product development and market leadership.

Negative Factors

North American Market Challenges

Challenges in North America could hinder growth, as regional performance impacts overall revenue and market expansion efforts.

Moderation in Revenue Per Booking

Slower revenue per booking growth may affect short-term financial performance, indicating potential pricing pressure or competitive dynamics.

Impact of U.S. Flight Restrictions

U.S. flight restrictions pose risks to transaction volumes, potentially impacting revenue streams and operational forecasts.

Amadeus IT Group, S.A. Business Overview & Revenue Model

Company Description

Amadeus IT Group, S.A. is a leading technology provider for the global travel and tourism industry, headquartered in Madrid, Spain. The company specializes in developing advanced software solutions and transaction-based services for airlines, travel agencies, hotels, and other travel-related businesses. With a focus on enhancing operational efficiency and improving customer experience, Amadeus offers a range of products including booking systems, revenue management tools, and travel management platforms, serving as a critical backbone for travel distribution and operations worldwide.

How the Company Makes Money

Amadeus generates revenue primarily through its technology solutions and services, which are offered on a transactional basis. Key revenue streams include fees from airlines and travel agencies for the use of its Global Distribution System (GDS), which facilitates travel bookings and inventory management. Additionally, the company earns income from software licensing, maintenance contracts, and consulting services. Significant partnerships with major airlines, hotel chains, and travel management companies enhance its market reach and contribute to its earnings. The company also benefits from a growing demand for digital transformation in travel, enabling it to capitalize on trends such as mobile bookings and personalized travel experiences.

Amadeus IT Group, S.A. Financial Statement Overview

Summary

Amadeus IT Group demonstrates strong financial performance with significant revenue and profit growth, robust cash flow generation, and a balanced balance sheet. The company effectively navigated through the pandemic-induced downturn, showcasing resilience and adaptability. However, potential global disruptions and high debt levels in previous years pose risks.

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.

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.

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.44B	6.14B	5.44B	4.49B	2.67B	2.17B
Gross Profit	3.04B	2.65B	2.41B	1.87B	834.90M	299.80M
EBITDA	2.51B	2.35B	2.13B	1.55B	575.90M	159.40M
Net Income	1.35B	1.25B	1.12B	664.40M	-142.40M	-625.40M
Balance Sheet
Total Assets	11.58B	11.78B	10.80B	11.71B	11.18B	11.70B
Cash, Cash Equivalents and Short-Term Investments	968.20M	1.13B	1.06B	1.99B	1.82B	2.48B
Total Debt	0.00	3.38B	3.31B	4.41B	4.98B	5.66B
Total Liabilities	6.51B	6.72B	6.31B	7.13B	7.44B	7.94B
Stockholders Equity	5.07B	5.06B	4.48B	4.58B	3.75B	3.74B
Cash Flow
Free Cash Flow	1.62B	1.36B	1.19B	874.10M	176.10M	-468.50M
Operating Cash Flow	1.38B	2.15B	1.79B	1.44B	636.30M	33.00M
Investing Cash Flow	-951.90M	-1.15B	4.50M	-493.30M	-205.50M	-1.47B
Financing Cash Flow	-1.21B	-990.10M	-2.19B	-640.10M	-865.80M	2.46B

Amadeus IT Group, S.A. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 73.14
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AMADY, the sentiment is Neutral. The current price of 73.14 is above the 20-day moving average (MA) of 72.32, below the 50-day MA of 75.88, and below the 200-day MA of 79.02, indicating a neutral trend. The MACD of -1.00 indicates Negative momentum. The RSI at 47.95 is Neutral, neither overbought nor oversold. The STOCH value of 94.15 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AMADY.

Amadeus IT Group, S.A. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EXPE	80 Outperform	$33.60B	26.23	104.40%	0.56%	7.29%	36.51%
AMADY	71 Outperform	$32.03B	21.56	26.27%	1.56%	10.25%	14.23%
TCOM	71 Outperform	$46.61B	11.37	19.96%	0.39%	17.34%	91.51%
MMYT	65 Neutral	$7.86B	127.20	16.66%	―	14.55%	-68.46%
BKNG	63 Neutral	$170.89B	34.46	―	0.70%	12.96%	3.66%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SABR	46 Neutral	$596.28M	1.24	―	―	-3.61%	―

Amadeus IT Group, S.A. Corporate Events

Amadeus Earnings Call: Growth and Strategic Wins

Amadeus’ recent earnings call showcased a balanced sentiment, highlighting the company’s strong financial growth and strategic advancements, particularly in AI and hospitality. Despite facing challenges in the North American market and a moderation in revenue metrics, the overall tone was optimistic about future growth prospects.

Amadeus Reports Strong Q3 2025 Financial Performance

Amadeus, a leading technology provider for the travel and tourism industry, continues to enhance travel experiences through innovation and partnerships, serving a diverse global clientele.