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

• Market Cap: €21.77B
• Dividend Yield: 2.24%
• Average Volume (3M): 606.03K
• Price to Earnings (P/E): 20.7
• Beta (1Y): 1.01
• Revenue Growth: 8.08%
• EPS Growth: 11.80%
• Country: ES
• Employees: 20,643
• Sector: General
• Sector Strength: N/A
• Industry: Travel Services
• EPS (TTM): 0.72
• Shares Outstanding: 450,499,200
• 10 Day Avg. Volume: 556,765
• 30 Day Avg. Volume: 606,029
• PEG Ratio: 3.72
• Price to Book (P/B): 5.69
• Price to Sales (P/S): 4.24
• P/FCF Ratio: 13.19
• 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: €61.80
• Price Target Upside: 17.13% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): 3.49
• Revenue Forecast (FY): €6.98B

• Rating: 69 Neutral
• Price Target: €58.00 ▲(9.93% Upside)
• Action: Reiterated Date: 03/01/26
• Date: Action: Reiterated 03/01/26

The score is driven primarily by strong financial performance (profitability, improved leverage, and solid cash generation). This is tempered by weaker technicals, with the stock still trading below key medium- and long-term moving averages and a negative MACD. Valuation is moderately supportive thanks to a reasonable P/E and a ~2.5% dividend yield.

Positive Factors

Balance-sheet deleveraging

Moving to zero reported debt in 2025 materially strengthens financial flexibility and lowers default and refinancing risk, enabling reinvestment or buybacks. This durable capital-structure improvement supports resilience through travel cycles and funds strategic technology investments.

Strong cash generation

A sustained step-up in free cash flow that approaches net income signals high earnings quality and internal funding capacity. Robust FCF provides durable ability to fund R&D, repay liabilities, and support dividends without frequent external capital needs.

Profitability recovery and margin strength

Material margin recovery versus earlier losses indicates scalable economics of the GDS and IT services. Sustained mid-teens to ~20% net margin combined with revenue growth underpins long-term cash generation and returns on invested capital.

Negative Factors

Gross-margin volatility

Volatile gross margins point to exposure to mix shifts, pricing pressure, or cost inflation in travel services. Persistent margin swings can erode predictability of operating profit and complicate capital allocation and long-term planning for product investment.

Cash conversion friction

OCF materially below EBITDA indicates working-capital drag or timing gaps in collections and payables. Over months this can constrain liquidity despite strong accounting profits, forcing reliance on cash buffers and limiting swift scaling or opportunistic spending.

Abrupt capital-structure shift

A sudden capital-structure change and modest balance-sheet contraction may reflect one-off transactions or asset sales. If structural, it raises questions about recurring asset base and long-term funding strategy, warranting scrutiny of sustainability of earnings and investment capacity.

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

Strong post-2020 recovery with solid profitability (about ~20% net margin) and healthy operating performance. Leverage improvement is a major positive, including reported zero debt in 2025, and cash generation is robust with a notable free-cash-flow step-up in 2025. Key risks are gross-margin volatility and the abrupt 2025 capital structure shift that warrants context, plus some cash-conversion friction (operating cash flow below EBITDA).

Income Statement

Profitability has materially strengthened versus 2020–2021 losses, with 2025 showing solid margins (about 33% gross margin and ~20% net margin) and healthy operating profitability. Revenue has grown strongly from 2022 onward, culminating in a sharp step-up in 2025 versus 2024. The main weakness is some volatility in gross margin (notably a drop in 2025 versus 2023–2024), indicating potential mix or cost-pressure swings even as operating and net margins stayed resilient.

Balance Sheet

Leverage has improved significantly over time, moving from relatively high debt levels in 2020–2022 to a reported zero total debt in 2025, which is a major balance-sheet positive. Equity remains sizable and returns on equity are strong in 2023–2025, reflecting improved earnings power. A key watch-out is the abrupt shift to zero debt in 2025 versus meaningful debt in 2024, which could reflect a major capital structure change; additionally, total assets and equity are slightly lower in 2025 than 2024, suggesting some balance-sheet contraction.

Cash Flow

Cash generation is strong: operating cash flow has risen substantially from 2020 levels and remains robust through 2024–2025, while free cash flow jumped in 2025 and is close to net income, supporting earnings quality. Free cash flow has also shown strong multi-year improvement after being negative in 2020. The weakness is that operating cash flow remains below EBITDA (coverage around ~0.71 in 2024–2025), implying working-capital or cash conversion frictions despite the strong overall cash profile.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	6.52B	6.14B	5.44B	4.49B	2.67B
Gross Profit	2.13B	2.65B	2.41B	1.87B	834.90M
EBITDA	2.49B	2.35B	2.09B	1.61B	586.20M
Net Income	1.34B	1.25B	1.12B	664.40M	-142.40M
Balance Sheet
Total Assets	11.47B	11.78B	10.80B	11.71B	11.18B
Cash, Cash Equivalents and Short-Term Investments	975.60M	1.13B	1.06B	1.99B	1.82B
Total Debt	0.00	3.38B	3.31B	4.41B	4.98B
Total Liabilities	6.62B	6.72B	6.31B	7.13B	7.44B
Stockholders Equity	4.85B	5.06B	4.48B	4.58B	3.75B
Cash Flow
Free Cash Flow	2.09B	1.36B	1.19B	874.10M	176.10M
Operating Cash Flow	2.15B	2.15B	1.79B	1.44B	636.30M
Investing Cash Flow	-805.60M	-1.15B	4.50M	-493.30M	-205.50M
Financing Cash Flow	-1.41B	-990.10M	-2.19B	-640.10M	-865.80M

Amadeus IT Group S.A Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 52.76
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ES:AMS, the sentiment is Neutral. The current price of 52.76 is above the 20-day moving average (MA) of 49.97, below the 50-day MA of 56.07, and below the 200-day MA of 64.94, indicating a neutral trend. The MACD of -1.32 indicates Negative momentum. The RSI at 52.32 is Neutral, neither overbought nor oversold. The STOCH value of 67.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	74 Outperform	€327.71M	12.83	29.98%	―	6.79%	130.31%
AMS	69 Neutral	€21.77B	20.67	27.50%	2.24%	8.08%	11.80%
IDR	68 Neutral	€10.80B	19.56	28.47%	0.52%	6.92%	57.04%
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%