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Avolta (DUFRY)
OTHER OTC:DUFRY
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Avolta
(OTC:DUFRY)
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Rating:68Neutral
Price Target:
$6.50
▲(20.59% Upside)
Dufry AG's strong financial performance and positive earnings call are offset by bearish technical indicators and high valuation. The company's robust cash flow and strategic initiatives provide a solid foundation, but market sentiment and valuation concerns weigh on the overall score.
Positive Factors
Strong cash generation
Sustained free cash flow growth and high cash conversion (operating cash flow to net income 25.29, FCF to net income 20.60) support durable funding for capex, dividends, buybacks and deleveraging, improving long-term financial flexibility.
Recovering revenue and resilient margins
Consistent top-line recovery combined with strong gross and EBITDA margins reflects structural operating leverage in travel retail. High product margins and efficient operations provide a margin buffer through travel cycles and underpin sustainable profitability.
Expanded loyalty and digital shift
A 13M-member loyalty base and ongoing digital transformation deepen customer engagement and raise wallet share. Higher spend from members and data-driven personalization drive recurring revenue, higher conversion and long-term margin expansion across channels.
Negative Factors
High balance sheet leverage
Very high leverage limits strategic flexibility and increases vulnerability to interest rate or demand shocks. Even with recent deleveraging progress, elevated debt-to-equity constrains capacity for large acquisitions, cyclical losses or aggressive shareholder returns.
North America traffic weakness
Prolonged weak domestic air travel in North America can cap growth in a key market. Given airports' importance to sales, sustained passenger shortfalls would pressure organic revenue, hinder regional recovery and slow overall margin improvement.
Contract terminations in Asia Pacific
Early contract terminations remove retail footprint in high-growth travel markets and create revenue and execution risk. Uncertainty on scope and financial impact may require replacement investments or renegotiations, disrupting medium-term expansion plans.
Avolta (DUFRY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$8.55B
Dividend Yield1.62%
Average Volume (3M)1.01K
Price to Earnings (P/E)65.3
Beta (1Y)0.89
Revenue Growth6.66%
EPS Growth-2.52%
CountryUS
Employees57,679
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)0.02
Shares Outstanding1,409,560,200
10 Day Avg. Volume0
30 Day Avg. Volume1,012
Financial Highlights & Ratios
PEG Ratio5.48
Price to Book (P/B)2.25
Price to Sales (P/S)0.39
P/FCF Ratio2.49
Enterprise Value/Market Cap1.97
Enterprise Value/Revenue1.63
Enterprise Value/Gross Profit2.59
Enterprise Value/Ebitda13.90
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Avolta Business Overview & Revenue Model
Company DescriptionAvolta (DUFRY) is a prominent player in the global travel retail sector, specializing in the sale of duty-free and duty-paid products in airports, cruise lines, and other travel-related venues. The company operates a diverse portfolio of shops and concessions, offering a wide range of products including perfumes, cosmetics, fashion items, electronics, and local souvenirs, catering to the needs of international travelers.
How the Company Makes MoneyAvolta generates revenue primarily through the sale of goods in its retail locations, capitalizing on the tax advantages of duty-free shopping. Key revenue streams include direct sales from retail outlets situated in airports and other travel hubs, which benefit from high foot traffic. The company also earns income through partnerships with various brands that provide products on a concession basis, allowing for a share of sales. Additionally, Avolta leverages promotional activities and exclusive brand collaborations to enhance customer engagement and drive sales. Factors contributing to its earnings include the growing travel industry, increased consumer spending on luxury goods, and strategic expansions into emerging markets.
Avolta Earnings Call Summary
Earnings Call Date:Jul 31, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Mar 10, 2026
Earnings Call Sentiment Positive
The earnings call highlighted strong overall growth, expansion of the loyalty program, and improvements in EBITDA margin despite regional challenges in North America and the Middle East. The praise from Aena and positive cash flow developments further underscore the company's resilience.Q2-2025 Updates
Positive Updates
Strong Organic Growth
The company reported a 7.1% growth at constant exchange rates for the first half of the year, with a strong organic growth of 5.7%, despite challenges such as the U.S. slowdown and geopolitical crises.
EBITDA Margin Improvement
EBITDA margin improved by 30 basis points to 9.3%, aligning with the company's mid-term outlook of a 20 to 40 basis points increase.
Equity Free Cash Flow and Deleveraging
The company generated CHF 216 million in equity free cash flow, enabling a reduction in net debt to EBITDA from 2.35x to 2.15x.
Expansion of Loyalty Program
The Club of Bolta loyalty program reached 13 million members, contributing significantly to sales with members spending 3x the average ticket.
Positive Feedback from Aena
Avolta received praise from Aena, a major airport partner, highlighting successful retail and hybrid concept operations.
Negative Updates
North America Performance
Weakness in North America was attributed to a decrease in the number of domestic passengers, resulting in flat organic growth in that region.
Middle East Crisis Impact
The geopolitical tensions in the Middle East affected growth, with an estimated 0.2% to 0.3% impact on the overall growth in Q2.
Early Terminations in Asia Pacific
The company is undergoing early terminations in Asia Pacific, though specifics about the countries or airports involved were not disclosed.
Company Guidance
During the call, Avolta provided a detailed guidance for the first half of the fiscal year 2025, highlighting a robust performance despite geopolitical challenges. The company reported a 7.1% growth at constant currency and a 5.7% organic growth. The EBITDA margin improved by 30 basis points, reaching 9.3%, while the equity free cash flow amounted to CHF 216 million. Avolta's net debt to EBITDA ratio improved to 2.15x, close to their target of 1.5 to 2x. The company also emphasized their ongoing digital transformation, with their loyalty program, Club of Bolta, reaching 13 million members who spend three times more than average. Avolta reaffirmed its mid-term outlook of 5% to 7% organic growth and EBITDA margin expansion of 20 to 40 basis points annually. They also highlighted their strategic focus on value creation, with plans for progressive dividend growth and share buybacks.Avolta Financial Statement Overview
Summary
Dufry AG shows a strong recovery with increasing revenues and robust cash flows. Despite high leverage, the company maintains profitable operations with strong cash flow management, positioning it well in the retail industry.Income Statement
Dufry AG has demonstrated a strong recovery in revenue with a notable growth rate of 7.32% from the previous year. The company maintains healthy profitability metrics, with a gross profit margin of 64.13% and a net profit margin of 0.75%. EBIT and EBITDA margins are also robust at 6.81% and 20.73% respectively, indicating operational efficiency.Balance Sheet
The balance sheet reflects a high debt-to-equity ratio of 5.07, suggesting significant leverage. However, the return on equity (ROE) stands at 4.39%, showing the company's ability to generate profit from shareholder investments. The equity ratio is at 13.50%, indicating moderate reliance on equity financing.Cash Flow
The cash flow statement is strong with a 10.64% growth in free cash flow. The operating cash flow to net income ratio of 25.29 indicates solid cash conversion. Free cash flow to net income ratio is high at 20.60, demonstrating excellent cash profitability.| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 10.37B | 13.72B | 12.79B | 6.88B | 3.92B | 2.56B |
| Gross Profit | 6.52B | 8.80B | 3.92B | 4.19B | 2.21B | 1.38B |
| EBITDA | 1.21B | 2.84B | 2.47B | 1.62B | -258.90M | -1.13B |
| Net Income | 72.75M | 103.00M | 87.30M | 58.20M | -385.40M | -2.51B |
Balance Sheet | ||||||
| Total Assets | 16.63B | 17.40B | 16.51B | 9.31B | 9.99B | 11.26B |
| Cash, Cash Equivalents and Short-Term Investments | 935.00M | 756.00M | 769.50M | 854.70M | 793.50M | 360.30M |
| Total Debt | 11.74B | 11.91B | 11.19B | 6.58B | 7.45B | 9.12B |
| Total Liabilities | 14.67B | 14.88B | 14.02B | 8.34B | 8.96B | 10.34B |
| Stockholders Equity | 1.83B | 2.35B | 2.36B | 893.00M | 956.60M | 839.30M |
Cash Flow | ||||||
| Free Cash Flow | 1.82B | 2.12B | 1.92B | 1.40B | 587.00M | -464.30M |
| Operating Cash Flow | 2.16B | 2.60B | 2.36B | 1.51B | 678.20M | -345.30M |
| Investing Cash Flow | -248.65M | -312.00M | -1.00M | -67.40M | -72.80M | -74.90M |
| Financing Cash Flow | -1.69B | -2.18B | -2.40B | -1.34B | -136.20M | 257.00M |
Avolta Technical Analysis
Positive
5.39
Price Trends
5.64
Positive
5.59
Positive
5.32
Positive
Market Momentum
0.07
Positive
58.15
Neutral
47.77
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DUFRY, the sentiment is Positive. The current price of 5.39 is below the 20-day moving average (MA) of 5.93, below the 50-day MA of 5.64, and above the 200-day MA of 5.32, indicating a bullish trend. The MACD of 0.07 indicates Positive momentum. The RSI at 58.15 is Neutral, neither overbought nor oversold. The STOCH value of 47.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DUFRY.
Avolta Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $23.61B | 21.88 | 56.92% | 1.37% | 5.10% | 7.59% | |
70 Outperform | $41.08B | 19.78 | 42.43% | 1.38% | 4.89% | 17.30% | |
69 Neutral | $17.63B | 22.11 | 17.05% | 3.33% | 3.26% | -25.41% | |
68 Neutral | $8.55B | 65.30 | 5.58% | 1.62% | 6.66% | -2.52% | |
62 Neutral | $15.05B | 23.31 | 22.49% | 5.46% | -0.95% | -48.28% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
54 Neutral | $13.05B | 64.92 | 59.58% | ― | 9.80% | -46.84% |
* Consumer Cyclical Sector Average
DUFRY
Avolta
5.95
2.19
58.07%
BBY
Best Buy Co
71.81
-8.20
-10.25%
EBAY
eBay
90.88
26.15
40.40%
GPC
Genuine Parts Company
126.73
13.85
12.27%
WSM
Williams-Sonoma
197.81
5.47
2.84%
CHWY
Chewy
31.44
-4.44
-12.37%
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.