Amadeus IT Group S.A (AMS) AI Stock Analysis

• Market Cap: €28.73B
• Dividend Yield: 2.28%
• Average Volume (3M): 606.03K
• Price to Earnings (P/E): 21.7
• Beta (1Y): 0.99
• Revenue Growth: 8.08%
• EPS Growth: 11.80%
• Country: ES
• Employees: 20,643
• Sector: Services
• Sector Strength: N/A
• Industry: Travel Services
• EPS (TTM): 0.84
• Shares Outstanding: 450,499,200
• 10 Day Avg. Volume: 556,765
• 30 Day Avg. Volume: 606,029
• PEG Ratio: 1.56
• Price to Book (P/B): 5.87
• Price to Sales (P/S): 4.84
• P/FCF Ratio: 21.90
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €75.33
• Price Target Upside: 23.69% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: €63.00 ▲(3.45% Upside)

Amadeus IT Group S.A's strong financial performance is a key strength, supported by robust revenue and profit growth and solid cash flow management. However, technical analysis indicates bearish momentum, which poses a risk to the stock's near-term performance. The valuation is reasonable, with a fair P/E ratio and a modest dividend yield. These factors collectively result in a moderate overall stock score.

Positive Factors

Revenue Growth

Amadeus's strong revenue growth indicates robust demand for its solutions, enhancing its market position and supporting long-term expansion.

Cash Generation

Strong cash generation supports Amadeus's ability to invest in growth opportunities and maintain financial flexibility, ensuring sustainability.

Profit Margins

High profit margins reflect efficient operations and cost management, providing a competitive edge and enhancing shareholder value.

Negative Factors

Debt Levels

While leverage is moderate, substantial debt could limit financial flexibility and pose risks if not managed effectively, impacting long-term stability.

Capital Expenditures

High capital expenditures, while indicative of growth investments, could pressure cash flow and necessitate careful financial planning.

Industry Competition

Intense competition in the travel technology sector may challenge Amadeus's market share and require continuous innovation to maintain its position.

Amadeus IT Group S.A Business Overview & Revenue Model

Company Description

Amadeus 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 Money

Amadeus generates revenue primarily through transaction-based fees charged to travel agencies, airlines, and other travel service providers that utilize its global distribution system. Key revenue streams include booking fees from travel agencies for each reservation made through its platform, subscription fees for its IT solutions, and licensing fees for its software products. Additionally, Amadeus benefits from partnerships with major airlines and travel agencies, which enhance its market presence and provide a steady stream of transactions. The company also invests in innovation and technology enhancements, allowing it to maintain a competitive edge and expand its offerings, which contributes to its earnings.

Amadeus IT Group S.A Financial Statement Overview

Summary

Amadeus IT Group S.A demonstrates strong financial performance with impressive revenue and profit growth, efficient cost management, and robust cash generation. The balance sheet is solid, though the debt level is notable. Overall, the company is well-positioned in the competitive industry.

Income Statement

Amadeus IT Group S.A has demonstrated strong revenue growth over the years, with 2024 revenue increasing by 12.9% from 2023. The company has maintained a healthy gross profit margin of 43.2% and a robust net profit margin of 20.4% for 2024. The EBITDA margin stands at 38.3%, indicating efficient cost management and strong operational performance. These positive trends highlight the company's stability and profitability in the industry.

Balance Sheet

The company's balance sheet reflects a solid equity base with a debt-to-equity ratio of 0.67, suggesting a moderate leverage level. The equity ratio is 42.9%, indicating a strong financial foundation. However, the total debt remains substantial, which could pose a risk if not managed carefully. Overall, the balance sheet presents a stable financial position with good shareholder equity.

Cash Flow

The cash flow statement reveals a positive growth trajectory in free cash flow, increasing to €1.36 billion in 2024. The operating cash flow to net income ratio of 1.71 indicates strong cash generation capability relative to net income. However, capital expenditures remain significant, reflecting ongoing investments in growth. Overall, the company demonstrates strong cash flow management with continued investment in its business.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.35B	6.14B	5.44B	4.49B	2.67B	2.17B
Gross Profit	2.91B	2.65B	2.41B	1.87B	834.90M	299.80M
EBITDA	2.47B	2.35B	2.09B	1.61B	586.20M	-102.80M
Net Income	1.34B	1.25B	1.12B	664.40M	-142.40M	-625.40M
Balance Sheet
Total Assets	11.80B	11.78B	10.80B	11.71B	11.18B	11.70B
Cash, Cash Equivalents and Short-Term Investments	1.27B	1.13B	1.06B	1.99B	1.82B	2.48B
Total Debt	3.11B	3.38B	3.31B	4.41B	4.98B	5.66B
Total Liabilities	6.50B	6.72B	6.31B	7.13B	7.44B	7.94B
Stockholders Equity	5.30B	5.06B	4.48B	4.58B	3.75B	3.74B
Cash Flow
Free Cash Flow	1.54B	1.36B	1.19B	874.10M	176.10M	-468.50M
Operating Cash Flow	1.09B	2.15B	1.79B	1.44B	636.30M	33.00M
Investing Cash Flow	-733.60M	-1.15B	4.50M	-493.30M	-205.50M	-1.47B
Financing Cash Flow	-794.50M	-990.10M	-2.19B	-640.10M	-865.80M	2.46B

Amadeus IT Group S.A Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 60.90
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ES:AMS, the sentiment is Negative. The current price of 60.9 is below the 20-day moving average (MA) of 63.43, below the 50-day MA of 65.86, and below the 200-day MA of 69.09, indicating a bearish trend. The MACD of -1.34 indicates Positive momentum. The RSI at 34.57 is Neutral, neither overbought nor oversold. The STOCH value of 11.14 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ES:AMS.

Amadeus IT Group S.A Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EDR	67 Neutral	€464.49M	5.84	29.98%	―	6.79%	130.31%
IDR	66 Neutral	€8.97B	23.28	28.47%	0.50%	6.92%	57.04%
AMS	61 Neutral	€28.73B	21.71	27.50%	2.28%	8.08%	11.80%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%