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Global Business Travel Group (GBTG)
NYSE:GBTG
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Global Business Travel Group
(NYSE:GBTG)
Rating:58Neutral
Price Target:
$6.50
▲(2.69%Upside)
Positive Factors
Margins
Margins were a bright spot as cost control initiatives reaped benefits, with adj EBITDA margin surpassing expectations.
Market Leadership
GBTG is the clear leader with a record of organic share gains and accretive M&A.
Revenue Resilience
70% of revenue comes from recurring products and professional services, offering some resilience in a tougher macro environment.
Negative Factors
Acquisition Challenges
It is difficult to handicap whether the CWT deal will go through given the DOJ challenge.
Demand Environment
Economic slowdown drove guidance cut due to slower demand environment and flat transaction growth.
Revenue Growth Weakness
Travel revenue growth showed weakness, falling below estimates.
Global Business Travel Group (GBTG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.96B
Dividend YieldN/A
Average Volume (3M)1.09M
Price to Earnings (P/E)―
Beta (1Y)1.02
Revenue Growth4.82%
EPS Growth73.90%
CountryUS
Employees19,000
SectorTechnology
Sector Strength89
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.16
Shares Outstanding478,702,760
10 Day Avg. Volume1,249,107
30 Day Avg. Volume1,085,340
Financial Highlights & Ratios
PEG Ratio0.04
Price to Book (P/B)2.28
Price to Sales (P/S)0.00
P/FCF Ratio-0.71
Enterprise Value/Market Cap0.45
Enterprise Value/Revenue0.14
Enterprise Value/Gross Profit0.94
Enterprise Value/Ebitda1.35
Forecast
1Y Price Target
$9.00Price Target Upside42.18% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
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 MoneyGlobal Business Travel Group generates revenue primarily through service fees charged to corporate clients for managing their travel programs. This includes fees for booking flights, hotels, and other travel-related services. Additionally, GBTG earns from technology solutions that streamline travel management processes, subscription models for access to their travel management platforms, and commissions from travel service providers. Strategic partnerships with airlines, hotels, and car rental companies further enhance their revenue through negotiated rates and volume-based incentives. The company's ability to provide data analytics and reporting services also contributes to its earnings, as clients seek insights to optimize their travel spend.
Global Business Travel Group Earnings Call Summary
Earnings Call Date:May 06, 2025
(Q1-2025)
| % Change Since: -8.13%|
Next Earnings Date:Aug 07, 2025
Earnings Call Sentiment Positive
The earnings call presented a strong financial performance in Q1 with significant growth in adjusted EBITDA, cash flow, and high customer retention. However, the company faces challenges in organic transaction growth and specific sectors impacted by tariffs. The overall sentiment leans towards positive, supported by strong financial metrics and strategic wins, despite some softer growth expectations.Q1-2025 Updates
Positive Updates
Strong Q1 Financial Performance
The company reported a 15% growth in adjusted EBITDA, a 260 basis point increase in margin expansion, and a 9% increase in free cash flow for Q1 2025.
High Customer Retention and New Wins
Customer retention was maintained at a high level of 96% over the last 12 months, with new wins valued at $3.2 billion, including $2.3 billion from SME customers.
Revenue and Transaction Growth
Total transaction volume increased by 4%, and total transaction value (TTV) grew by 5% to $8.3 billion. Revenue was up 4% to $621 million.
Credit Rating Upgrades
The company received two credit rating upgrades from Moody's and S&P during the quarter.
Increased Digital Transactions
81% of transactions came through digital channels, with digital bookings growing 5% year-over-year.
Negative Updates
Softer Organic Transaction Growth
Organic transaction growth was approximately 1 percentage point below expectations, with SME growth remaining slower at 2%.
Challenges in Specific Sectors
Sectors such as energy, mining, marine, automotive, and pharma showed slower growth, partly due to exposure to tariffs.
Flat Transaction Growth Assumption
The company adjusted its guidance to assume flat transaction growth for the full year 2025, reflecting a 2% decline in organic transactions offset by new wins.
Company Guidance
During the American Express Global Business Travel First Quarter and Full Year 2025 Earnings Conference Call, the company provided guidance emphasizing strong financial performance metrics. Key highlights included a 15% growth in adjusted EBITDA to $141 million, a 260 basis points expansion in EBITDA margin, and a 9% increase in free cash flow. Total transaction volume rose by 4% leading to a total transaction value (TTV) of $8.3 billion, and revenue increased by 4% to $621 million. Despite a slightly weaker than expected top-line performance, the company maintained a robust adjusted EBITDA margin of 23% and demonstrated strong cost control with operating expenses down 1% year-over-year. The company reiterated its commitment to shareholder returns, highlighting $3.2 billion in new wins and maintaining a high customer retention rate of 96%. Looking forward, the company provided Q2 guidance of $625 million in revenue and $130 million in adjusted EBITDA, with a full-year guidance of $510 million in adjusted EBITDA, reflecting a confident outlook despite macroeconomic uncertainties.Global Business Travel Group Financial Statement Overview
Summary
Global Business Travel Group shows positive revenue growth and improved margins, yet struggles with profitability. The company demonstrates strong cash flow management, but high leverage and negative return on equity present potential risks.Income Statement
The company has shown significant revenue growth with a 31.4% increase from 2022 to 2023 and a further 5.8% increase from 2023 to 2024. Gross profit margin has improved to 58.9% for TTM, indicating good control over production costs. However, the net profit margin remains negative at -1.8% for TTM due to consistent net losses, reflecting challenges in achieving profitability. The EBIT margin has improved to 6.7% for TTM, showing progress in operating efficiency.65
Positive
Balance Sheet
The debt-to-equity ratio stands at 1.3 for TTM, suggesting a moderate level of leverage that could pose risk if economic conditions worsen. The return on equity is negative at -3.9% for TTM, indicating the company is not generating profits from shareholders' equity. The equity ratio is 29.6% for TTM, showing a stable but slightly below average reliance on equity financing.55
Neutral
Cash Flow
The company has shown positive trends in cash flow, with a strong operating cash flow to net income ratio of -6.3 for TTM, indicating effective cash generation despite net losses. Free cash flow has grown by 4.2% from 2023 to 2024, highlighting improved liquidity management. The free cash flow to net income ratio is -3.8 for TTM, suggesting that the company is generating cash flow despite profitability challenges.70
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.43B | 2.42B | 2.29B | 1.85B | 763.00M | 793.00M |
| Gross Profit | 1.43B | 1.46B | 1.33B | 1.02B | 286.00M | 264.00M |
| EBITDA | 223.00M | 231.00M | 190.00M | -7.00M | -446.00M | -419.00M |
| Net Income | -44.00M | -138.00M | -63.00M | -226.00M | -467.00M | -614.00M |
Balance Sheet | ||||||
| Total Assets | 3.79B | 3.62B | 3.75B | 3.73B | 3.77B | 2.76B |
| Cash, Cash Equivalents and Short-Term Investments | 552.00M | 536.00M | 476.00M | 303.00M | 516.00M | 584.00M |
| Total Debt | 1.46B | 1.46B | 1.43B | 1.30B | 1.10B | 702.00M |
| Total Liabilities | 2.66B | 2.57B | 2.54B | 2.36B | 2.28B | 1.77B |
| Stockholders Equity | 1.12B | 1.05B | 1.21B | 152.00M | 1.49B | 981.00M |
Cash Flow | ||||||
| Free Cash Flow | 167.00M | 165.00M | 49.00M | -488.00M | -556.00M | -297.00M |
| Operating Cash Flow | 276.00M | 272.00M | 162.00M | -394.00M | -512.00M | -250.00M |
| Investing Cash Flow | -95.00M | -102.00M | -119.00M | -95.00M | -27.00M | -47.00M |
| Financing Cash Flow | -100.00M | -85.00M | 120.00M | 292.00M | 478.00M | 384.00M |
Global Business Travel Group Technical Analysis
Positive
6.33
Price Trends
6.35
Positive
7.11
Negative
7.78
Negative
Market Momentum
-0.03
Negative
55.40
Neutral
75.01
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GBTG, the sentiment is Positive. The current price of 6.33 is above the 20-day moving average (MA) of 6.32, below the 50-day MA of 6.35, and below the 200-day MA of 7.78, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 55.40 is Neutral, neither overbought nor oversold. The STOCH value of 75.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $4.32B | ― | -63.52% | ― | 30.08% | -196.62% | |
71 Outperform | $6.55B | 116.72 | 8.56% | ― | 27.32% | ― | |
66 Neutral | $1.18B | ― | -36.95% | ― | 17.79% | 16.49% | |
63 Neutral | $32.90B | 6.03 | -11.70% | 1.95% | 5.55% | -19.87% | |
58 Neutral | $2.96B | ― | -3.84% | ― | 4.82% | 73.90% | |
58 Neutral | $3.04B | ― | -83.36% | ― | 9.84% | 13.74% | |
52 Neutral | $3.58B | ― | -33.09% | ― | 13.85% | 3.47% |
* Technology Sector Average
Performance Comparison
GBTG
Global Business Travel Group
6.33
-0.27
-4.09%
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SPT
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12.96
10.45
416.33%
ASAN
Asana
13.33
-0.66
-4.72%
GRND
Grindr
22.40
10.16
83.01%
Global Business Travel Group Corporate Events
Executive/Board ChangesShareholder Meetings
Global Business Travel Group Elects New Directors
Neutral
Jun 13, 2025
On June 11, 2025, Global Business Travel Group, Inc. held its annual meeting of stockholders where four Class III directors were elected to serve until 2028. Additionally, the appointment of KPMG LLP as the independent registered public accounting firm for the fiscal year 2025 was ratified, indicating a continued focus on maintaining robust financial oversight.
The most recent analyst rating on (GBTG) stock is a Hold with a $7.00 price target. To see the full list of analyst forecasts on Global Business Travel Group stock, see the GBTG Stock Forecast page.
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.