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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
▲(12.90%Upside)
Amadeus IT Group, S.A. (AMADY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$35.07B
Dividend Yield1.41%
Average Volume (3M)14.09K
Price to Earnings (P/E)25.1
Beta (1Y)0.70
Revenue Growth10.45%
EPS Growth18.41%
CountryUS
Employees20,643
SectorTechnology
Sector Strength95
IndustryTravel Services
Share Statistics
EPS (TTM)0.96
Shares Outstanding450,499,000
10 Day Avg. Volume2,420
30 Day Avg. Volume14,087
Financial Highlights & Ratios
PEG Ratio8.71
Price to Book (P/B)5.76
Price to Sales (P/S)0.00
P/FCF Ratio17.21
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 generates revenue primarily through its two main business segments: Distribution and IT Solutions. In the Distribution segment, Amadeus earns money by facilitating the sale of travel services through its Global Distribution System (GDS), which connects travel agencies and service providers like airlines and hotels. This system enables the booking and distribution of travel products, with Amadeus earning fees per transaction. In the IT Solutions segment, Amadeus provides airlines, airports, hotels, and railways with various software solutions, including passenger service systems (PSS), departure control systems, and revenue management tools. The company charges these clients through licensing fees, subscription models, and service agreements. Additionally, strategic partnerships and collaborations with key players in the travel industry enhance its service offerings and expand its market reach.
Amadeus IT Group, S.A. Earnings Call Summary
Earnings Call Date:Jul 31, 2025
(Q2-2025)
| % Change Since: -0.73%|
Next Earnings Date:Nov 07, 2025
Earnings Call Sentiment Positive
The earnings call reflects a generally positive sentiment with steady revenue and profit growth, strategic investments, and successful partnerships. However, challenges in hospitality growth and passenger boarded metrics, alongside a decline in free cash flow, present areas of concern.Q2-2025 Updates
Positive Updates
Steady Revenue and Profit Growth
Amadeus delivered an 8% growth in revenue at constant currency and a 12% growth in profit for the first half of 2025, despite challenging macroeconomic conditions.
Significant Investment in R&D
The company invested approximately EUR 700 million, or 20% of group revenue, in R&D to support future revenue generation and technological advancements.
Major Cloud Transformation
Amadeus completed 90% of its applications activation in the public cloud, enhancing flexibility, scalability, and innovation potential.
Strategic Partnerships and Expansions
Announced a new strategic partnership with Google, alongside Microsoft, to enhance AI-driven innovations and multi-cloud strategy.
New Contracts and Renewals
Signed 29 new contracts or renewals of distribution agreements with airlines in the first half of 2025.
Strong Performance in Air Distribution
Air Distribution revenue grew by 7.5% at constant currency, driven by positive pricing impacts and customer renewals.
Negative Updates
Hospitality Growth Slowed
The Hospitality segment experienced slower growth of 7.5% at constant currency, affected by a reduction in media spend by customers, particularly in North America.
Passenger Boarded Growth Impacted
Amadeus passenger's boarded grew by only 4.6%, impacted by geopolitical situations, moderation in travel demand, and aircraft incidents.
Free Cash Flow Decline
Free cash flow decreased by 12% compared to the previous year due to increases in capital expenditure and working capital outflow.
Company Guidance
During the Amadeus First Half 2025 Results Conference Call, CEO Luis Maroto highlighted steady and profitable growth despite a challenging macroeconomic and geopolitical environment. Key metrics included an 8% revenue growth at constant currency, with profits growing faster than revenues. The company invested EUR 700 million in R&D, amounting to 20% of group revenue, and achieved significant milestones in its cloud transformation, with 90% of applications now in the public cloud. Amadeus also expanded its strategic partnerships, notably with Google, to explore AI-driven innovations. The company reported a 4.6% growth in passengers boarded, with Asia Pacific leading regional growth at 10%. Additionally, Amadeus signed 29 new or renewed distribution agreements with airlines and advanced NDC content availability, securing 74 NDC agreements. The hospitality segment saw an 8% revenue increase, driven by new customer implementations and a focus on AI-powered innovations. CFO Carol Borg confirmed that the company expects 2025 revenue growth at the lower end of the guided range, with EBITDA and EBIT growing faster than revenue.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. However, the company should manage its debt levels prudently to sustain 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 | 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
Neutral
80.60
Price Trends
82.35
Negative
79.71
Positive
75.60
Positive
Market Momentum
-0.14
Positive
40.74
Neutral
0.07
Positive
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 80.6 is below the 20-day moving average (MA) of 82.74, below the 50-day MA of 82.35, and above the 200-day MA of 75.60, indicating a neutral trend. The MACD of -0.14 indicates Positive momentum. The RSI at 40.74 is Neutral, neither overbought nor oversold. The STOCH value of 0.07 is Positive, 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
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $35.07B | 25.14 | 25.80% | 1.41% | 10.45% | 18.41% | |
75 Outperform | $41.32B | 18.11 | 12.49% | 0.45% | 16.23% | 56.05% | |
74 Outperform | $22.91B | 21.23 | 119.16% | 0.44% | 5.57% | 61.19% | |
68 Neutral | $174.57B | 37.46 | -146.32% | 0.68% | 11.72% | 0.51% | |
65 Neutral | $8.73B | 104.11 | 22.38% | ― | 18.13% | -55.21% | |
62 Neutral | $34.53B | 6.79 | -11.66% | 2.11% | 6.09% | -7.36% | |
55 Neutral | $1.18B | ― | 20.22% | ― | 2.56% | 69.08% |
* Technology Sector Average
Performance Comparison
AMADY
Amadeus IT Group, S.A.
80.24
18.99
31.00%
TCOM
Trip.com Group Ltd. Sponsored ADR
60.63
21.49
54.91%
EXPE
Expedia
178.06
63.09
54.88%
MMYT
Makemytrip
91.77
6.88
8.10%
BKNG
Booking Holdings
5,386.29
2,083.83
63.10%
SABR
Sabre
2.93
-0.21
-6.69%
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.