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TUI AG (DE:TUI1)
XETRA:TUI1
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TUI AG
(XETRA:TUI1)
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Rating:69Neutral
Price Target:
€10.00
▲(8.81% Upside)
TUI AG's overall stock score of 69 reflects a combination of strong technical indicators and a solid valuation, despite financial performance concerns. The bullish technical analysis and undervaluation based on the P/E ratio are significant positives. However, the financial performance is mixed, with profitability and cash flow strengths countered by revenue decline and high leverage. The earnings call provided additional insights into operational successes and strategic challenges, but was not factored into the score due to weight redistribution.
Positive Factors
Revenue Growth
TUI's record Q3 results with a 7% revenue increase demonstrate strong market demand and effective business strategies, reinforcing its competitive position.
Cruise Segment Success
The cruise segment's success, with full bookings and high occupancy, indicates robust demand and operational efficiency, supporting long-term growth.
Guidance Upgrade
Upgraded EBIT guidance reflects confidence in ongoing strategic initiatives and market conditions, suggesting sustained financial improvement.
Negative Factors
High Leverage
High leverage poses risks to financial stability and limits flexibility, potentially impacting TUI's ability to invest in growth or weather downturns.
Cash Flow Management
Negative free cash flow growth indicates challenges in cash generation, which could constrain TUI's ability to fund operations and strategic investments.
Challenges in Markets + Airline Segment
Declining bookings in the Markets + Airline segment highlight vulnerabilities to external disruptions, affecting revenue stability and growth potential.
TUI AG (TUI1) vs. iShares MSCI Germany ETF (EWG)
Market Cap
€4.67B
Dividend YieldN/A
Average Volume (3M)2.37M
Price to Earnings (P/E)7.3
Beta (1Y)1.36
Revenue Growth4.37%
EPS Growth25.42%
CountryDE
Employees53,959
SectorConsumer Cyclical
Sector Strength84
IndustryTravel Services
Share Statistics
EPS (TTM)1.74
Shares Outstanding507,431,030
10 Day Avg. Volume2,217,561
30 Day Avg. Volume2,371,859
Financial Highlights & Ratios
PEG Ratio0.25
Price to Book (P/B)2.23
Price to Sales (P/S)0.16
P/FCF Ratio3.97
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
€10.39Price Target Upside13.06% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering8
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
TUI AG Business Overview & Revenue Model
Company DescriptionTUI AG, together with its subsidiaries, provides tourism services worldwide. It operates hotels and resorts under the Robinson, Riu, TUI Blue, Blue Diamond, TUI Suneo, and TUI Magic Life brands. The company is also involved in the tour operation and airlines businesses. In addition, it operates cruise liners. The company operates a fleet of 1,600 travel agencies and online portals; 5 airlines with approximately 150 aircraft; and 15 cruise liners, as well as approximately 400 hotels. The company was formerly known as Preussag AG and changed its name to TUI AG in June 2002. TUI AG is headquartered in Hanover, Germany.
How the Company Makes MoneyTUI AG generates revenue through multiple streams primarily centered around its travel and tourism services. The company's core revenue sources include package holiday sales, which combine flights, accommodations, and other services, and direct sales from its airline operations. Additionally, TUI earns revenue from its hotel and resort businesses, which include both owned and managed properties. The cruise segment is another significant contributor, with TUI operating several cruise lines that offer vacation packages at sea. The company also benefits from ancillary services such as travel insurance, excursions, and car rentals. Strategic partnerships with airlines, local service providers, and technology platforms enhance TUI's offerings and operational efficiency, further bolstering its revenue potential.
TUI AG Earnings Call Summary
Earnings Call Date:Dec 10, 2025
(Q4-2025)
| % Change Since: |
Next Earnings Date:Feb 10, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mix of strong operational achievements, particularly in the Hotels & Resorts and Cruise segments, alongside strategic challenges such as the underperformance in Markets & Airlines and Boeing delays. The initiation of a dividend policy and significant leverage reduction are positive indicators, while the integration of AI presents future growth opportunities. However, the challenges in certain segments require attention to sustain overall growth.Q4-2025 Updates
Positive Updates
Record Performance and Strong EBIT Increase
Achieved a record performance with a strong increase in EBIT, driven by the integrated strategy and successful M&A transformation.
Hotels & Resorts and Cruise Success
Hotels & Resorts had an outstanding year with 84% occupancy and increased daily rates. Cruise segment saw 100% occupancy with a significant increase in daily rates.
Dividend Policy Initiation
Introduced a new dividend policy, starting immediately due to strong results, a decision welcomed by shareholders.
Revenue and Profit Growth
Reported a revenue growth of over 4% and an underlying EBIT increase of 12.6% on constant currency rates.
Leverage Reduction
Net debt improved by EUR 0.3 billion to EUR 1.3 billion, reducing leverage to 0.6x, one of the lowest rates in the company's history.
AI Integration
Significant steps taken to become an AI-powered organization, improving content production, customer service, and cost efficiency.
Negative Updates
Markets & Airlines Underperformance
Experienced a EUR 100 million decrease in results due to heavy investment in transformation and extraordinary impacts.
Boeing Delays Impact
Faced operational challenges due to Boeing delays, which affected fleet efficiency and required significant cost coverage.
Jamaica Incident Impact
The Jamaica incident had a significant negative hit, impacting trading and requiring strategic adjustments.
Company Guidance
In the call, the company reported a strong fiscal year 2025 with several key metrics indicating robust performance. Revenue grew by over 4%, while underlying EBIT increased by 12.6% at constant currency rates. The company achieved an 84% occupancy rate in its hotels and saw a notable performance in its cruise sector, with 100% occupancy and an increased daily rate. Musement also showed substantial growth in its owned products, with a 30% take-up rate among market customers. The company's net debt improved by EUR 0.3 billion to EUR 1.3 billion, reducing leverage to 0.6x. Looking ahead, the company expects 7% to 10% profit growth in 2026, driven by strategic investments and operational efficiencies, including a EUR 250 million cost reduction plan. The introduction of a new dividend policy, starting with a EUR 0.10 dividend for 2025, reflects the company's strong results and financial discipline.TUI AG Financial Statement Overview
Summary
TUI AG's financial performance shows profitability and strong cash flow generation, but is offset by revenue decline and high leverage. The income statement indicates profitability with a net profit margin of 2.74%, but revenue has declined by 10.4%. The balance sheet reveals a high debt-to-equity ratio of 6.47, posing financial risk despite a strong return on equity of 72.71%. Cash flow is positive with a 22.92% growth in free cash flow, supporting operational flexibility.Income Statement
TUI AG's income statement shows a mixed performance. The company has achieved a positive net profit margin of 2.74% in TTM, indicating profitability, but revenue has declined by 10.4% compared to the previous period. The gross profit margin is relatively low at 8.52%, suggesting limited pricing power or high cost of goods sold. EBIT and EBITDA margins are modest, reflecting operational efficiency improvements. Overall, while profitability is improving, revenue contraction is a concern.65
Positive
Balance Sheet
The balance sheet reveals a high debt-to-equity ratio of 6.47, indicating significant leverage and potential financial risk. However, the return on equity is strong at 72.71%, reflecting effective use of equity to generate profits. The equity ratio is low, suggesting reliance on debt financing. While profitability metrics are strong, the high leverage poses a risk to financial stability.55
Neutral
Cash Flow
Cash flow analysis shows a positive trend with a 22.92% growth in free cash flow, indicating improved cash generation. The operating cash flow to net income ratio is 0.15, suggesting moderate cash conversion efficiency. The free cash flow to net income ratio of 0.55 indicates that a significant portion of earnings is being converted into free cash flow. Overall, cash flow generation is strong, supporting operational and financial flexibility.70
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 24.18B | 24.18B | 23.17B | 20.67B | 16.54B | 4.73B |
| Gross Profit | 2.02B | 2.22B | 1.95B | 1.61B | 931.60M | -1.22B |
| EBITDA | 2.14B | 1.84B | 2.22B | 1.44B | 1.08B | -1.27B |
| Net Income | 635.90M | 635.90M | 507.10M | 305.80M | -212.60M | -2.48B |
Balance Sheet | ||||||
| Total Assets | 18.15B | 18.15B | 17.42B | 16.15B | 15.26B | 14.16B |
| Cash, Cash Equivalents and Short-Term Investments | 3.13B | 3.13B | 2.21B | 2.11B | 1.82B | 1.09B |
| Total Debt | 4.44B | 4.44B | 4.54B | 4.22B | 5.20B | 6.48B |
| Total Liabilities | 15.46B | 15.79B | 15.64B | 14.21B | 14.61B | 14.57B |
| Stockholders Equity | 1.76B | 1.76B | 956.40M | 1.12B | -141.60M | -1.09B |
Cash Flow | ||||||
| Free Cash Flow | 1.23B | 989.60M | 1.20B | 971.10M | 1.56B | -451.00M |
| Operating Cash Flow | 1.96B | 1.73B | 1.91B | 1.64B | 2.08B | -151.30M |
| Investing Cash Flow | -726.50M | -771.70M | -604.30M | -492.20M | -308.20M | 704.70M |
| Financing Cash Flow | -937.50M | -656.90M | -531.40M | -834.60M | -1.63B | -233.50M |
TUI AG Technical Analysis
Positive
9.19
Price Trends
7.80
Positive
8.00
Positive
7.54
Positive
Market Momentum
0.36
Negative
75.78
Negative
95.36
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:TUI1, the sentiment is Positive. The current price of 9.19 is above the 20-day moving average (MA) of 8.36, above the 50-day MA of 7.80, and above the 200-day MA of 7.54, indicating a bullish trend. The MACD of 0.36 indicates Negative momentum. The RSI at 75.78 is Negative, neither overbought nor oversold. The STOCH value of 95.36 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:TUI1.
TUI AG Peers Comparison
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.