Sabre (SABR) AI Stock Analysis

• Market Cap: $845.49M
• Dividend Yield: N/A
• Average Volume (3M): 7.23M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.20
• Revenue Growth: 4.19%
• EPS Growth: 53.84%
• Country: US
• Employees: 6,253
• Sector: Consumer Cyclical
• Sector Strength: 63
• Industry: Travel Services
• EPS (TTM): -0.73
• Shares Outstanding: 386,069,580
• 10 Day Avg. Volume: 4,369,361
• 30 Day Avg. Volume: 7,225,356
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.45
• Price to Cash Flow (P/CF): 4.10
• P/FCF Ratio: 5.10
• 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: $4.22
• Price Target Upside: 92.69% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 6

Sabre Corporation faces significant financial challenges with persistent losses, negative equity, and high leverage. While the earnings call offers a positive outlook with strategic growth initiatives, technical analysis suggests a bearish trend and valuation metrics are unattractive. Overall, the stock is under pressure, reflecting both financial distress and market sentiment concerns, with some optimism for future improvements.

Positive Factors

Air Booking Growth

Air booking growth is accelerating and expected to continue, and at the same time hospitality segment growth is bound to accelerate to high teens backed by newly signed partnerships and continued ramp-up from Hyatt.

Market Share Gains

Sabre Corp's continued market share gains are expected to accelerate both air bookings and CRS transactions to double-digit growth, thanks to its upgraded cloud-native open-source offerings.

Partnerships

The Hyatt partnership is expected to drive a significant portion of CRS transaction growth, contributing to the overall positive outlook for Sabre Corp.

Negative Factors

Corporate Travel Recovery

A permanent 10% shift of travel volume to virtual means more limited prospects for corporate travel recovery, affecting Sabre Corp's growth driven by travel recovery.

Debt and Interest

Interest expense and leverage remains high, but Sabre managed to push large debt maturities further out.

Revenue Shortfall

Revenue was $691m vs $699m consensus, growing 3% YoY vs 4% prior, indicating a slight revenue shortfall.

Sabre Business Overview & Revenue Model

Company Description

Sabre Corporation, through its subsidiary, Sabre Holdings Corporation, provides software and technology solutions for the travel industry worldwide. It operates in two segments, Travel Solutions and Hospitality Solutions. The Travel Solutions segment operates as a business-to-business travel marketplace that offers travel content, such as inventory, prices, and availability from a range of travel suppliers, including airlines, hotels, car rental brands, rail carriers, cruise lines, and tour operators with a network of travel buyers comprising online and offline travel agencies, travel management companies, and corporate travel departments. This segment also provides a portfolio of software technology products and solutions through software-as-a-service (SaaS) and hosted delivery models to airlines and other travel suppliers. Its products include reservation systems for carriers, commercial and operations products, agency solutions, and data-driven intelligence solutions. The Hospitality Solutions segment provides software and solutions to hoteliers through SaaS and hosted delivery models. Sabre Corporation was incorporated in 2006 and is headquartered in Southlake, Texas.

How the Company Makes Money

Sabre Corporation generates revenue primarily through its Travel Solutions and Hospitality Solutions segments. The Travel Solutions segment includes its Global Distribution System (GDS), which acts as a centralized platform for travel suppliers like airlines and hotels to distribute their inventory to travel agencies and corporations. Sabre earns money by charging transaction fees each time a booking is made through its GDS. The company also provides Software as a Service (SaaS) solutions through its SabreSonic Customer Sales & Service platform, which airlines use for reservations, inventory management, and departure control operations, generating revenue through subscription and usage-based fees. In the Hospitality Solutions segment, Sabre offers property management and central reservation systems to hotels, charging fees based on usage and service subscriptions. Significant partnerships with airlines, hotels, and travel agencies, as well as a strong presence in the global travel industry, contribute to Sabre's earnings.

Sabre Financial Statement Overview

Summary

Overall, Sabre faces significant financial challenges. Despite some revenue recovery and cash flow improvements, consistent profitability issues, negative equity, and high debt levels are major concerns. The company needs to address these hurdles to stabilize its financial standing.

Income Statement

Sabre's revenues have shown some recovery since the pandemic low in 2020, with a revenue growth rate of 4.2% from 2023 to 2024. However, profitability remains a concern with a negative net profit margin of -9.2% in 2024, despite improved gross profit margins. The company has struggled with consistent negative net income over recent years, indicating ongoing operational challenges.

Balance Sheet

The balance sheet presents significant challenges with a negative stockholders' equity of -$1.38 billion as of 2024, indicating potential solvency issues. The debt-to-equity ratio is not meaningful due to negative equity, but high total debt of $5.06 billion implies leverage concerns. The equity ratio is negative, reflecting the financial distress and reliance on debt financing.

Cash Flow

Cash flow analysis shows some positive signs; operating cash flow has turned positive in 2024, reaching $70.6 million. However, free cash flow remains negative, albeit improving. The operating cash flow to net income ratio is not meaningful due to negative net income, highlighting ongoing cash management challenges.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
3.03B	2.91B	2.54B	1.69B	1.33B
	Gross Profit
908.83M	1.72B	400.10M	-55.41M	-401.63M
	EBIT
286.16M	47.14M	-123.73M	-665.49M	-988.04M
	EBITDA
358.67M	109.69M	57.51M	-431.19M	-730.31M
	Net Income Common Stockholders
-278.76M	-527.61M	-432.10M	-923.77M	-1.27B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
725.03M	700.18M	794.89M	978.35M	1.50B
	Total Assets
4.63B	4.67B	4.96B	5.29B	6.08B
	Total Debt
5.06B	4.89B	4.74B	4.75B	4.67B
	Net Debt
4.34B	4.24B	3.95B	3.77B	3.17B
	Total Liabilities
6.23B	6.03B	5.84B	5.79B	5.72B
	Stockholders Equity
-1.38B	-1.39B	-884.33M	-508.91M	355.60M
Cash Flow		Free Cash Flow
-13.55M	-31.61M	-349.21M	-472.45M	-838.60M
	Operating Cash Flow
70.59M	55.81M	-279.72M	-418.15M	-773.18M
	Investing Cash Flow
-29.61M	-109.98M	173.98M	-29.43M	-1.29M
	Financing Cash Flow
39.57M	-94.22M	-75.37M	-50.56M	1.84B

Sabre Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.19
• 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 SABR, the sentiment is Negative. The current price of 2.19 is below the 20-day moving average (MA) of 2.28, below the 50-day MA of 3.13, and below the 200-day MA of 3.35, indicating a bearish trend. The MACD of -0.29 indicates Negative momentum. The RSI at 38.56 is Neutral, neither overbought nor oversold. The STOCH value of 47.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SABR.

Sabre Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BKNG	77 Outperform	$157.93B	27.96	-146.32%	0.74%	11.11%	47.03%
CHWY	75 Outperform	$15.22B	40.92	101.78%	―	6.40%	891.13%
EXPE	71 Outperform	$20.63B	17.83	79.84%	0.25%	6.64%	69.85%
LYFT	61 Neutral	$4.57B	212.50	3.48%	―	31.39%	―
TRIP	60 Neutral	$1.79B	771.52	0.55%	―	2.63%	-58.77%
Sector *	60 Neutral	$6.86B	11.61	3.16%	4.15%	2.41%	-21.45%
SABR	46 Neutral	$845.49M	―	20.22%	―	4.19%	53.84%

Sabre Corporate Events

Sabre’s Annual Meeting and Board Elections

On February 24, 2025, Sabre held its Annual Meeting where stockholders elected ten members to the Board of Directors, each to serve a one-year term. The stockholders also ratified Ernst & Young LLP as the independent auditor for the fiscal year ending December 31, 2025, approved the 2025 Omnibus Plan, and endorsed the compensation of Sabre’s named executive officers.

Spark’s Take on SABR Stock

According to Spark, TipRanks’ AI Analyst, SABR is a Neutral.

Sabre Corporation faces significant financial challenges with persistent losses, negative equity, and high leverage. While the earnings call offers a positive outlook with strategic growth initiatives, technical analysis suggests a bearish trend and valuation metrics are unattractive. Overall, the stock is under pressure, reflecting both financial distress and market sentiment concerns, with some optimism for future improvements.

To see Spark’s full report on SABR stock, click here.

Karl Peterson Retires from Sabre Board of Directors

On February 6, 2025, Sabre Corporation announced the retirement of Karl Peterson from its Board of Directors, effective immediately prior to the company’s 2025 Annual Meeting of Stockholders on April 23, 2025. His departure is not due to any disagreements with Sabre or its management. The Board will reduce to nine directors upon his retirement. Peterson, who has been a board member since 2007 and served as Chair and Lead Director, is praised for his significant contributions and leadership during his tenure, which saw the company navigate numerous challenges and progress towards its strategic goals.