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Global Business Travel Group, Inc. (GBTG)
NYSE:GBTG
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Global Business Travel Group
(NYSE:GBTG)
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Rating:62Neutral
Price Target:
$8.50
▲(13.33% Upside)
Global Business Travel Group's stock score is primarily driven by strong earnings call highlights and strategic initiatives, which indicate potential for future growth. However, concerns about cash flow generation and high valuation metrics weigh down the overall score. Technical indicators suggest mixed signals, with short-term bullish momentum but potential overbought conditions.
Positive Factors
Revenue Growth
The strong revenue growth indicates a robust market position and effective service offerings, contributing to long-term business sustainability and expansion.
Strategic Partnerships
The partnership with SAP Concur is expected to enhance product offerings and drive growth in the SME segment, strengthening competitive advantage.
Acquisition Impact
The acquisition of CWT significantly boosts revenue and market share, providing new opportunities for cost synergies and business expansion.
Negative Factors
Cash Flow Constraints
Declining free cash flow growth indicates potential challenges in cash generation, which could impact financial flexibility and investment capacity.
Low Profitability
Low net profit margins reflect limited profitability, which may hinder the company's ability to reinvest in growth and improve shareholder returns.
Potential Sale Consideration
Considering a sale may indicate strategic uncertainty and potential disruption, affecting long-term business stability and strategic direction.
Global Business Travel Group (GBTG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.93B
Dividend YieldN/A
Average Volume (3M)1.66M
Price to Earnings (P/E)341.5
Beta (1Y)1.13
Revenue Growth5.71%
EPS GrowthN/A
CountryUS
Employees19,000
SectorConsumer Cyclical
Sector Strength84
IndustrySoftware - Application
Share Statistics
EPS (TTM)-0.03
Shares Outstanding523,526,100
10 Day Avg. Volume1,123,479
30 Day Avg. Volume1,657,514
Financial Highlights & Ratios
PEG Ratio-0.27
Price to Book (P/B)4.09
Price to Sales (P/S)1.77
P/FCF Ratio26.02
Enterprise Value/Market Cap1.27
Enterprise Value/Revenue1.98
Enterprise Value/Gross Profit3.24
Enterprise Value/Ebitda13.12
Forecast
1Y Price Target
$10.25Price Target Upside36.67% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)0.35
Revenue Forecast (FY)$3.26B
Global Business Travel Group Business Overview & Revenue Model
Company DescriptionGlobal Business Travel Group, Inc. provides business-to-business (B2B) travel platform. The company's platform offers a suite of technology-enabled solutions to business travelers and corporate clients, travel content suppliers, and third-party travel agencies. Its platform manages travel, expenses, and meetings and events for companies. The company has built marketplace in B2B travel to deliver unrivalled choice, value, and experiences. Global Business Travel Group, Inc. is based in New York, New York.
How the Company Makes MoneyGBTG generates revenue primarily through service fees charged for travel bookings, management services, and consulting. Key revenue streams include commissions from airlines, hotels, and car rental companies for bookings made through their platform, as well as transaction fees for each travel service utilized by clients. Additionally, GBTG may earn income from subscription models for access to premium services or technology solutions. Strategic partnerships with major travel suppliers and technology firms enhance its offerings and revenue potential, while a focus on cost savings for clients drives repeat business and long-term contracts.
Global Business Travel Group Earnings Call Summary
Earnings Call Date:Nov 10, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Mar 11, 2026
Earnings Call Sentiment Positive
The earnings call showcased strong growth metrics and strategic developments, particularly with the acquisition of CWT and partnership with SAP Concur. Despite some temporary financial impacts from the acquisition and external factors like the U.S. government shutdown, the overall outlook remains positive with anticipated growth in 2026.Q3-2025 Updates
Positive Updates
Strong Transaction and Revenue Growth
Total transaction value (TTV) grew 23% and revenue growth accelerated to 13%.
Record Customer Retention and New Wins
Amex GBT achieved a customer retention rate of 95% and $3.2 billion in total new wins value over the last 12 months.
Significant Acquisition of CWT
The acquisition of CWT increased revenues by approximately 30% and SME business by approximately 20%.
Promising AI Integration
AI-driven solutions led to a 23% reduction in the need for human intervention in Egencia Chats and increased hotel attachment rates, improving efficiency and revenue.
Strategic Partnership with SAP Concur
A new alliance with SAP Concur aims to develop a flagship travel and expense solution that could accelerate growth within the SME segment.
Negative Updates
Free Cash Flow Impacted by CWT
Free cash flow declined due to the cash impact of CWT, although excluding CWT, the core business generated $54 million.
Temporary Margin Reduction
The adjusted EBITDA margin was down 70 basis points due to the CWT acquisition.
Impact of U.S. Government Shutdown
CWT's assumptions for Q4 were affected by the current U.S. government shutdown, impacting the government business.
Company Guidance
In the third quarter of 2025, American Express Global Business Travel reported robust financial performance with significant growth across multiple metrics. Total transaction value (TTV) increased by 23%, while revenue grew by 13%, highlighting the company's strong market position. The adjusted gross profit margin reached 60%, and adjusted EBITDA grew by 9%, demonstrating effective cost management and operational efficiency. Free cash flow generation amounted to $38 million, and the company achieved $3.2 billion in total new wins value over the past 12 months. The acquisition of CWT contributed to a 30% revenue growth and introduced new opportunities for $155 million in net cost synergies over the next three years. Additionally, the strategic alliance with SAP Concur and the anticipated launch of the next-gen Egencia Travel and Expense solution in Q1 2026 are expected to drive further growth and margin expansion. The company reaffirmed the midpoint of its previous guidance for its core business and raised its full year 2025 guidance, reflecting confidence in continued strong performance and strategic initiatives.Global Business Travel Group Financial Statement Overview
Summary
Global Business Travel Group has shown positive revenue growth and improved operational efficiency. The balance sheet reflects a significant reduction in leverage, enhancing financial stability. However, cash flow generation remains a concern, with declining free cash flow growth. Overall, the company is on a positive trajectory but needs to focus on improving profitability and cash flow generation.Income Statement
Global Business Travel Group has shown a positive trend in revenue growth, with a TTM revenue growth rate of 3.16%. The gross profit margin is strong at 61.03%, indicating efficient cost management. However, the net profit margin is low at 0.40%, suggesting limited profitability. The EBIT and EBITDA margins have improved over the years, reflecting better operational efficiency, but still indicate room for improvement.65
Positive
Balance Sheet
The company has significantly improved its debt-to-equity ratio to 0.07 in the TTM period, indicating a strong reduction in leverage. The return on equity is low at 0.82%, showing limited returns for shareholders. The equity ratio is healthy, suggesting a stable financial structure. Overall, the balance sheet reflects improved financial stability.70
Positive
Cash Flow
The free cash flow growth rate has declined by 10.93% in the TTM period, indicating challenges in generating cash. The operating cash flow to net income ratio is 0.19, suggesting moderate cash generation relative to net income. The free cash flow to net income ratio is 0.50, which is reasonable but indicates potential cash flow constraints.55
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.52B | 2.42B | 2.29B | 1.85B | 763.00M | 793.00M |
| Gross Profit | 1.54B | 1.46B | 1.33B | 1.02B | 286.00M | 264.00M |
| EBITDA | 379.00M | 222.00M | 190.00M | -7.00M | -446.00M | -584.00M |
| Net Income | 10.00M | -138.00M | -63.00M | -25.00M | 0.00 | -614.00M |
Balance Sheet | ||||||
| Total Assets | 4.76B | 3.62B | 3.75B | 4.18B | 4.01B | 2.76B |
| Cash, Cash Equivalents and Short-Term Investments | 427.00M | 536.00M | 476.00M | 303.00M | 516.00M | 584.00M |
| Total Debt | 1.48B | 1.46B | 1.45B | 1.30B | 1.10B | 702.00M |
| Total Liabilities | 3.23B | 2.57B | 2.54B | 2.81B | 2.52B | 1.77B |
| Stockholders Equity | 1.53B | 1.05B | 1.21B | 152.00M | 1.49B | 981.00M |
Cash Flow | ||||||
| Free Cash Flow | 124.00M | 165.00M | 49.00M | -488.00M | -556.00M | -297.00M |
| Operating Cash Flow | 246.00M | 272.00M | 162.00M | -394.00M | -512.00M | -250.00M |
| Investing Cash Flow | -233.00M | -102.00M | -119.00M | -95.00M | -27.00M | -47.00M |
| Financing Cash Flow | -87.00M | -85.00M | 120.00M | 292.00M | 478.00M | 384.00M |
Global Business Travel Group Technical Analysis
Negative
7.50
Price Trends
7.71
Negative
7.88
Negative
7.24
Positive
Market Momentum
0.03
Positive
45.73
Neutral
31.72
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GBTG, the sentiment is Negative. The current price of 7.5 is below the 20-day moving average (MA) of 7.87, below the 50-day MA of 7.71, and above the 200-day MA of 7.24, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 45.73 is Neutral, neither overbought nor oversold. The STOCH value of 31.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GBTG.
Global Business Travel Group Risk Analysis
Global Business Travel Group disclosed 54 risk factors in its most recent earnings report. Global Business Travel Group reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Global Business Travel Group Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $3.23B | -114.89 | -2.98% | ― | 18.18% | 70.94% | |
71 Outperform | $3.14B | 31.57 | 6.51% | ― | 1.47% | 1077.70% | |
62 Neutral | $3.93B | 341.52 | 0.76% | ― | 5.71% | ― | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
59 Neutral | $3.11B | -55.25 | -20.47% | ― | 13.83% | -273.23% | |
57 Neutral | $2.71B | -12.35 | -102.48% | ― | 9.47% | 16.97% | |
50 Neutral | $3.94B | -23.62 | -15.88% | ― | 24.26% | 55.58% |
* Consumer Cyclical Sector Average
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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.