Sabre (SABR) AI Stock Analysis

• Market Cap: $830.05M
• Dividend Yield: N/A
• Average Volume (3M): 5.81M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.24
• Revenue Growth: 4.19%
• EPS Growth: 53.84%
• Country: US
• Employees: 6,253
• Sector: Consumer Cyclical
• Sector Strength: 61
• Industry: Travel Services
• EPS (TTM): -0.73
• Shares Outstanding: 386,069,580
• 10 Day Avg. Volume: 7,076,595
• 30 Day Avg. Volume: 5,811,809
• 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: $4.52
• Price Target Upside: 110.23% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 6

Sabre's overall stock score reflects significant financial and technical challenges. The company's negative net profit margin, high debt levels, and weak technical indicators weigh heavily on the score. While the company has a positive outlook for 2025, the current financial distress and bearish market conditions dominate the assessment.

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.

Strategic 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

Airline Contract Losses

Recent losses in air distribution with Turkish Airlines and Frontier Airlines are expected to create headwinds for air bookings.

Interest Expenses

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

Virtual Meetings Impact

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.

Sabre Business Overview & Revenue Model

Company Description

Sabre Corporation (SABR) is a leading technology provider to the global travel and tourism industry. The company operates in two primary sectors: Travel Solutions and Hospitality Solutions. Sabre's core products and services include a comprehensive travel marketplace that connects travel buyers and suppliers, as well as a suite of software solutions for airlines, hotels, travel agencies, and other travel-related businesses to manage operations, enhance customer service, and drive revenue.

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: 2.15
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

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 2.15 is below the 20-day moving average (MA) of 3.16, below the 50-day MA of 3.49, and below the 200-day MA of 3.39, indicating a bearish trend. The MACD of -0.21 indicates Positive momentum. The RSI at 25.75 is Positive, neither overbought nor oversold. The STOCH value of 6.17 is Positive, 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
EXPE	75 Outperform	$18.28B	15.86	79.84%	0.28%	6.64%	69.85%
CHWY	73 Outperform	$13.04B	35.05	101.78%	―	6.40%	891.13%
BKNG	72 Outperform	$140.58B	24.81	-146.32%	0.84%	11.11%	47.03%
TRIP	61 Neutral	$1.64B	708.48	0.55%	―	2.63%	-58.77%
LYFT	61 Neutral	$4.53B	211.72	3.48%	―	31.39%	―
Sector *	59 Neutral	$11.22B	10.13	-1.22%	3.96%	1.32%	-18.57%
SABR	40 Underperform	$830.05M	―	20.22%	―	4.19%	53.84%

Sabre Corporate Events

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.