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EDreams ODIGEO S.A. (ES:EDR)
BME:EDR
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EDreams ODIGEO
(BME:EDR)
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Rating:67Neutral
Price Target:
€4.00
▲(1.78% Upside)
EDreams ODIGEO's strong financial performance and strategic growth plans are offset by technical weaknesses and immediate challenges from Ryanair's blocking efforts. The stock's undervaluation presents an opportunity, but high leverage and short-term cash flow concerns require careful consideration.
Positive Factors
Prime Membership Growth
The growth in Prime membership indicates strong customer loyalty and recurring revenue potential, enhancing long-term revenue stability and market presence.
Strategic Shift to Monthly Payments
Transitioning to monthly payments increases customer retention and lifetime value, providing a more predictable revenue stream and enhancing customer satisfaction.
Geographic Expansion
Entering new markets diversifies revenue sources and reduces dependency on existing markets, supporting long-term growth and competitive positioning.
Negative Factors
Ryanair OTA Blocking
Ryanair's blocking efforts significantly impact customer acquisition, posing a risk to revenue growth and market share in the airline booking segment.
High Leverage
High leverage increases financial risk, limiting flexibility in capital allocation and potentially impacting the company's ability to invest in growth opportunities.
Short-Term Cash EBITDA Impact
Short-term decrease in cash EBITDA due to strategic investments may strain cash flow, affecting the company's ability to fund operations and growth initiatives.
EDreams ODIGEO (EDR) vs. iShares MSCI Spain ETF (EWP)
Market Cap
€874.27M
Dividend YieldN/A
Average Volume (3M)164.83K
Price to Earnings (P/E)13.9
Beta (1Y)1.01
Revenue Growth6.79%
EPS Growth130.31%
CountryES
Employees1,680
SectorServices
Sector StrengthN/A
IndustryTravel Services
Share Statistics
EPS (TTM)0.19
Shares Outstanding124,625,060
10 Day Avg. Volume171,924
30 Day Avg. Volume164,828
Financial Highlights & Ratios
PEG Ratio0.46
Price to Book (P/B)3.50
Price to Sales (P/S)1.30
P/FCF Ratio9.62
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
€4.25Price Target Upside8.14% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
EDreams ODIGEO Business Overview & Revenue Model
Company DescriptionEDreams ODIGEO (EDR) is a leading online travel agency based in Europe, specializing in providing a wide range of travel services, including flight bookings, hotel reservations, holiday packages, and car rentals. The company operates through several well-known brands, such as eDreams, Opodo, and Go Voyages, catering to millions of customers with a focus on offering competitive prices and a user-friendly booking experience. EDR leverages advanced technology to enhance the travel planning process, making it simpler for consumers to find and book their desired travel options.
How the Company Makes MoneyEDreams ODIGEO generates revenue primarily through its online travel agency model, which includes a commission-based structure from airlines, hotels, and other travel service providers. Key revenue streams include booking fees charged to customers, commissions on airline ticket sales, and revenue from ancillary services such as travel insurance and car rentals. The company also benefits from partnerships with various airlines and hotel chains, which provide access to exclusive deals and promotions, enhancing the attractiveness of its offerings. Additionally, EDR invests in digital marketing and technology to drive customer acquisition and retention, further contributing to its overall revenue growth.
EDreams ODIGEO Earnings Call Summary
Earnings Call Date:Nov 18, 2025
(Q2-2026)
| % Change Since: |
Next Earnings Date:Feb 19, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mix of strong growth in Prime membership and profitability, alongside strategic shifts to monthly payments and geographic expansion, which are expected to drive future growth. However, challenges such as Ryanair's blocking efforts and short-term impacts on cash EBITDA due to strategic investments present immediate concerns.Q2-2026 Updates
Positive Updates
Prime Membership Growth
Prime members grew by 18% to 7.7 million, with 457,000 added in the first half of FY '26.
Increased Profitability
Cash EBITDA reached EUR 94 million, growing 16% year-on-year, with an improvement in cash EBITDA margin by 5 percentage points from 22% to 28%.
Strategic Shift to Monthly Payments
Test results show a preference for monthly payments, leading to higher lifetime value and conversion rates, with a 13% increase in lifetime value.
Geographic Expansion and Product Diversification
Expansion into 14 new markets with positive results, and entry into the European rail market with promising growth potential.
AI Adoption and Technological Advancements
Massive scale adoption of Generative AI, with over 400 billion tokens processed annually, enhancing various business operations.
Negative Updates
Ryanair OTA Blocking
Ryanair's intensified OTA blocking efforts have reduced average daily bookings by over 80%, impacting new customer acquisition.
Revenue Margin Changes
Overall revenue margin increased by 5%, but cash revenue margin saw a 6% decrease due to a planned 22% reduction in non-Prime revenue margin.
Short-Term Cash EBITDA Impact
Investment and changes to monthly payments will cause cash EBITDA to decrease to EUR 155 million in FY '26 and EUR 115 million in FY '27.
Company Guidance
During the call, eDreams ODIGEO provided comprehensive guidance for the next four years, highlighting several key metrics. The company reported a strong first half of fiscal year 2026, with Prime membership growing by 18% to 7.7 million and Cash EBITDA increasing by 16% year-on-year to EUR 94 million. The new strategic plan aims for substantial growth, with Prime members projected to rise by 600,000 annually in fiscal '26 and '27, and a 15-20% annual growth from fiscal '28, reaching over 13 million by fiscal '30. The plan includes transitioning to monthly and quarterly payment models, which has shown a 13% higher lifetime value and a 10% increase in Net Promoter Score compared to annual payments. Despite immediate headwinds from Ryanair's intensified OTA blocking efforts, eDO maintains a strong financial outlook, with cash EBITDA expected to reach over EUR 270 million by fiscal year '30, growing more than 33% annually from fiscal '27 to '30. The company also commits to a EUR 100 million share buyback over the next two years, reflecting confidence in its growth strategy and shareholder value creation.EDreams ODIGEO Financial Statement Overview
Summary
EDreams ODIGEO shows strong profitability with healthy margins and revenue growth. However, high leverage and recent declines in free cash flow growth present financial risks. The company needs to manage its debt-to-equity ratio carefully to maintain financial stability.Income Statement
EDreams ODIGEO has shown strong revenue growth with a TTM revenue growth rate of 1.88%. The company maintains a healthy gross profit margin of 68.24% and a net profit margin of 8.75%, indicating solid profitability. The EBIT and EBITDA margins are also robust at 13.93% and 20.55%, respectively, suggesting efficient operations. However, the company has experienced fluctuations in revenue growth rates in previous years, which could indicate potential volatility.78
Positive
Balance Sheet
The company's debt-to-equity ratio stands at 1.47, indicating a relatively high level of leverage, which could pose risks if not managed carefully. However, the return on equity is strong at 23.94%, reflecting effective use of equity to generate profits. The equity ratio is moderate, suggesting a balanced approach to financing assets with equity.65
Positive
Cash Flow
EDreams ODIGEO's cash flow metrics show a mixed picture. The free cash flow growth rate is negative at -5.51%, indicating a decline in free cash flow generation. However, the operating cash flow to net income ratio is 0.28, and the free cash flow to net income ratio is 0.60, suggesting that the company is generating sufficient cash flow relative to its net income. This indicates a stable cash flow position despite recent declines.70
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 683.81M | 671.18M | 650.51M | 587.76M | 398.28M | 107.17M |
| Gross Profit | 466.62M | 671.18M | 558.29M | 569.59M | 382.58M | 63.31M |
| EBITDA | 140.54M | 116.24M | 77.58M | 23.61M | -6.26M | -73.81M |
| Net Income | 59.82M | 45.07M | 32.36M | -43.34M | -65.87M | -124.23M |
Balance Sheet | ||||||
| Total Assets | 1.13B | 1.16B | 1.15B | 1.07B | 1.08B | 986.24M |
| Cash, Cash Equivalents and Short-Term Investments | 57.14M | 78.64M | 93.90M | 35.93M | 45.93M | 12.14M |
| Total Debt | 372.35M | 379.33M | 380.64M | 385.70M | 424.26M | 513.23M |
| Total Liabilities | 875.05M | 911.83M | 880.44M | 837.63M | 802.61M | 727.77M |
| Stockholders Equity | 253.83M | 250.25M | 274.53M | 236.30M | 272.52M | 258.47M |
Cash Flow | ||||||
| Free Cash Flow | 85.28M | 91.03M | 89.73M | 64.37M | 92.22M | -21.28M |
| Operating Cash Flow | 141.35M | 146.41M | 138.88M | 102.53M | 119.15M | 428.00K |
| Investing Cash Flow | -56.31M | -55.55M | -48.80M | -38.15M | -26.92M | -21.66M |
| Financing Cash Flow | -132.45M | -105.61M | -31.05M | -67.74M | -50.93M | -69.45M |
EDreams ODIGEO Technical Analysis
Negative
3.93
Price Trends
6.65
Negative
7.54
Negative
7.67
Negative
Market Momentum
-0.98
Positive
24.70
Positive
57.10
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ES:EDR, the sentiment is Negative. The current price of 3.93 is below the 20-day moving average (MA) of 5.24, below the 50-day MA of 6.65, and below the 200-day MA of 7.67, indicating a bearish trend. The MACD of -0.98 indicates Positive momentum. The RSI at 24.70 is Positive, neither overbought nor oversold. The STOCH value of 57.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ES:EDR.
EDreams ODIGEO Peers Comparison
UnderperformOutperform
Sector (55)
ES:EDR
EDreams ODIGEO
3.93
-3.43
-46.60%
ES:AMS
Amadeus IT Group S.A
62.12
-5.60
-8.26%
ES:IDR
Indra Sistemas
47.20
30.24
178.37%
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.