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Amadeus IT Group, S.A. (AMADY)
OTHER OTC:AMADY
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Amadeus IT Group, S.A.
(OTC:AMADY)
Rating:74Outperform
Price Target:
$88.00
▲(10.36% Upside)
Positive Factors
Revenue Growth
Consistent revenue growth indicates strong market demand and effective business strategies, enhancing long-term financial stability.
R&D Investment
Significant R&D investment supports innovation and competitive edge, ensuring future revenue streams and technological leadership.
Cloud Transformation
Cloud transformation enhances scalability and innovation, positioning Amadeus for efficient operations and future growth opportunities.
Negative Factors
Hospitality Growth Challenges
Slower growth in hospitality indicates potential market saturation or competitive pressures, which could hinder long-term revenue expansion.
Passenger Boarded Growth
Limited growth in passengers boarded suggests potential vulnerability to external factors, affecting future revenue from this segment.
Free Cash Flow Decline
Decline in free cash flow may constrain financial flexibility, impacting the company's ability to invest in growth opportunities.
Amadeus IT Group, S.A. (AMADY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$34.77B
Dividend Yield1.43%
Average Volume (3M)3.88K
Price to Earnings (P/E)24.1
Beta (1Y)0.66
Revenue Growth10.13%
EPS Growth15.99%
CountryUS
Employees20,643
SectorTechnology
Sector Strength85
IndustryTravel Services
Share Statistics
EPS (TTM)0.96
Shares Outstanding450,499,000
10 Day Avg. Volume3,170
30 Day Avg. Volume3,882
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.14
Enterprise Value/Revenue6.33
Enterprise Value/Gross Profit12.51
Enterprise Value/Ebitda16.45
Forecast
1Y Price Target
$88.00Price Target Upside10.36% Upside
Rating ConsensusModerate Buy
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 generates revenue primarily through a transaction-based model, where it charges clients for each transaction processed through its systems. Key revenue streams include distribution revenue, derived from the sale of travel-related services, and IT solutions revenue, which encompasses software licensing and maintenance fees. The company has established significant partnerships with airlines, travel agencies, and hotel chains that bolster its market presence and contribute to its earnings. Additionally, Amadeus benefits from ongoing investments in technology and innovation that enhance its product offerings and drive customer retention.
Amadeus IT Group, S.A. Earnings Call Summary
Earnings Call Date:Jul 31, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 07, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a steady and profitable growth trajectory for Amadeus, driven by strategic partnerships, technological advancements, and expansion across various segments. Despite facing macroeconomic and geopolitical challenges, especially in North America, the company maintained strong financial health and demonstrated resilience. However, concerns about the deceleration in the hospitality segment and moderated travel demand impacted overall sentiment.Q2-2025 Updates
Positive Updates
Steady and Profitable Growth
Amadeus reported an 8% growth in revenue at constant currency and a faster profit growth, showing resilience in a challenging macroeconomic and geopolitical environment.
Strategic Partnerships and Technological Advancements
Amadeus announced a new strategic partnership with Google to support their multi-cloud strategy and explore AI-driven innovations. The company also made significant progress in its cloud transformation, with 90% of applications now activated in the public cloud.
Growth in Air Distribution and Airline IT Solutions
Amadeus signed 29 new contracts or renewals of distribution agreements with airlines and reported a 7.5% growth in Air Distribution revenue due to positive pricing impacts and contract renewals.
Expansion in Hospitality and Other Solutions
Continued growth in Hospitality and Other Solutions with 8% revenue increase, driven by new customer implementations and strong performance in payments.
Strong Cash Flow and Financial Health
Amadeus generated EUR 468.6 million of free cash flow, maintaining a low leverage ratio of 0.7x net debt to EBITDA.
Negative Updates
Challenging Macro and Geopolitical Environment
The company faced challenges due to geopolitical situations in various regions and a moderation in travel demand, particularly affecting the North American market.
Deceleration in Hospitality Growth
Hospitality and Other Solutions experienced a slowdown in growth, primarily due to a reduction in digital media spend by customers, especially in North America.
Passenger Boarded Growth Below Expectations
Passenger boarding grew by only 4.6%, impacted by geopolitical tensions and macroeconomic factors, with early July traffic trending slightly below the second quarter.
Company Guidance
During the first half of 2025, Amadeus achieved a steady and profitable growth amidst a challenging macro and geopolitical environment, with revenue increasing by 8% at constant currency and profit growing at a faster rate than revenue. The company invested approximately EUR 700 million in R&D, representing 20% of group revenue, and continued its significant cloud transformation with 90% of applications now in the public cloud. Amadeus expanded its strategic partnerships, notably with Google and Microsoft, to enhance its multi-cloud strategy and explore AI-driven innovations. The company reported a 4.6% growth in passenger volumes and a 2% increase in bookings, while the hospitality and other solutions segment saw an 8% revenue growth at constant currency. Despite foreign exchange challenges impacting revenue and EBIT, Amadeus maintained a leverage of 0.7x net debt to EBITDA, and its ongoing share buyback program reached 45% completion. The company projects revenue growth at the lower end of its 7.4% to 11.4% guidance range for 2025, with EBITDA and EBIT expected to outpace revenue growth.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, it should remain vigilant against potential global disruptions and manage its debt levels prudently to sustain its financial health.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 | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 6.28B | 6.14B | 5.44B | 4.49B | 2.67B | 2.17B |
| Gross Profit | 3.18B | 2.65B | 2.41B | 1.87B | 834.90M | 299.80M |
| EBITDA | 2.42B | 2.35B | 2.13B | 1.64B | 575.90M | 29.10M |
| Net Income | 1.29B | 1.25B | 1.12B | 664.40M | -136.70M | -617.60M |
Balance Sheet | ||||||
| Total Assets | 12.20B | 11.78B | 10.80B | 11.71B | 11.18B | 11.70B |
| Cash, Cash Equivalents and Short-Term Investments | 1.49B | 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 | 6.70B | 6.72B | 6.31B | 7.13B | 7.44B | 7.94B |
| Stockholders Equity | 5.50B | 5.06B | 4.48B | 4.58B | 3.75B | 3.74B |
Cash Flow | ||||||
| Free Cash Flow | 2.22B | 1.36B | 1.19B | 874.10M | 176.10M | -468.50M |
| Operating Cash Flow | 1.63B | 2.15B | 1.79B | 1.44B | 636.30M | 33.00M |
| Investing Cash Flow | -1.16B | -1.15B | 4.50M | -493.30M | -205.50M | -1.47B |
| Financing Cash Flow | -1.31B | -990.10M | -2.19B | -640.10M | -865.80M | 2.46B |
Amadeus IT Group, S.A. Technical Analysis
Negative
79.74
Price Trends
82.49
Negative
81.54
Negative
77.21
Positive
Market Momentum
-0.76
Positive
40.12
Neutral
23.51
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AMADY, the sentiment is Negative. The current price of 79.74 is below the 20-day moving average (MA) of 82.35, below the 50-day MA of 82.49, and above the 200-day MA of 77.21, indicating a neutral trend. The MACD of -0.76 indicates Positive momentum. The RSI at 40.12 is Neutral, neither overbought nor oversold. The STOCH value of 23.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AMADY.
Amadeus IT Group, S.A. Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $34.77B | 24.09 | 26.27% | 1.43% | 10.13% | 15.99% | |
73 Outperform | $48.64B | 20.70 | 12.94% | 0.38% | 17.73% | 27.95% | |
72 Outperform | $27.49B | 27.19 | 129.04% | 0.54% | 5.69% | 47.33% | |
67 Neutral | $9.58B | 110.96 | 22.38% | ― | 18.13% | -55.21% | |
67 Neutral | $178.19B | 38.24 | -146.32% | 0.69% | 11.72% | 0.51% | |
61 Neutral | $36.80B | 12.38 | -10.20% | 1.85% | 8.54% | -7.31% | |
47 Neutral | $737.74M | ― | 20.22% | ― | -1.16% | 25.63% |
* Technology Sector Average
Performance Comparison
AMADY
Amadeus IT Group, S.A.
79.74
9.88
14.14%
TCOM
Trip.com Group Sponsored ADR
73.87
27.29
58.59%
EXPE
Expedia
222.19
87.26
64.67%
MMYT
Makemytrip
97.81
-5.56
-5.38%
BKNG
Booking Holdings
5,458.32
1,507.66
38.16%
SABR
Sabre
1.87
-1.28
-40.63%
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.