Sabre (SABR) AI Stock Analysis

• Market Cap: $678.56M
• Dividend Yield: N/A
• Average Volume (3M): 9.58M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.30
• Revenue Growth: -1.16%
• EPS Growth: 25.63%
• Country: US
• Employees: 6,253
• Sector: Technology
• Sector Strength: 84
• Industry: Travel Services
• EPS (TTM): -0.02
• Shares Outstanding: 394,514,370
• 10 Day Avg. Volume: 5,825,166
• 30 Day Avg. Volume: 9,580,584
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 8.63
• Enterprise Value/Revenue: 1.99
• Enterprise Value/Gross Profit: 4.53
• Enterprise Value/Ebitda: 17.24
• 1Y Price Target: $3.31
• Price Target Upside: 92.44% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

• Rating: 47 Neutral
• Price Target: $2.00 ▲(16.28% Upside)

Sabre's overall stock score is primarily impacted by its weak financial performance and concerning valuation. Technical analysis indicates bearish momentum, further weighing on the score. While recent corporate events and earnings call provide some positive aspects, they are insufficient to offset the broader financial challenges.

Positive Factors

Business Unit Sale

Sabre’s sale of its Hospitality Solutions business unit to TPG for $1.1 billion is broadly positive.

Debt Management

Improved debt maturity profile, extending nearly 60% of debt to 2029 and beyond, and reduced total debt by more than $1 billion or nearly 20%.

Market Share and Growth

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.

Negative Factors

Execution Issues

Management noted three components driving weakness vs. prior expectations: lower industry bookings growth, unfavorable mix given Sabre's exposures, and execution issues on growth strategies.

Macro Pressure

With macro/industry headwinds weighing on GDS bookings growth, Sabre must rely more fully on market share wins to reach double-digit Air bookings growth.

Surprise in Market Expectations

Investors question how management was so surprised by all these factors in such a short amount of time, and wonder why prior guidance embedded so much optimism and such an uncertain macro.

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 generates revenue primarily through transaction-based fees and subscription services. Its Travel Solutions segment earns money by charging airlines, hotels, and travel agencies for bookings made through its GDS platform, where it collects fees for each transaction processed. Additionally, Sabre offers software solutions on a subscription basis, providing tools for revenue management, customer engagement, and operational efficiency. The Hospitality Solutions segment contributes to revenue by supplying property management systems and solutions to hotels, which also operate on a subscription or transaction fee model. Strategic partnerships with major airlines and hotel chains enhance its offerings and revenue potential, while the growing demand for digital transformation in travel and hospitality sectors further drives its earnings.

Sabre Financial Statement Overview

Summary

Sabre's financial performance is mixed. While revenue growth is positive, profitability remains a challenge with continuous net losses. The balance sheet shows high financial risk due to negative equity and substantial debt, and cash flow challenges persist with negative free cash flow.

Income Statement

Sabre's income statement reflects a mixed financial performance. The company has shown an increase in total revenue over the years, with a TTM revenue of $3.02 billion, up from $2.53 billion in 2022. The gross profit margin improved, but the net income remains negative, indicating ongoing profitability challenges. The EBITDA margin has shown signs of recovery but remains below desirable levels. Overall, revenue growth is promising, but profitability remains a concern.

Balance Sheet

The balance sheet of Sabre highlights significant financial stress, with a negative stockholders' equity of -$1.35 billion as of TTM, reflecting high leverage and financial instability. The debt-to-equity ratio is not calculable, but the high total debt of over $5.11 billion signifies heavy reliance on borrowed funds. The equity ratio is negative, further stressing the financial risk and lack of asset coverage. Overall, the balance sheet indicates substantial financial risk.

Cash Flow

Sabre's cash flow statement shows a challenging situation with negative free cash flow of -$16.28 million in TTM. The operating cash flow has improved but remains low relative to net income. The free cash flow to net income ratio indicates that cash flow is insufficient to cover net losses, pointing to liquidity challenges. While there are slight improvements in operating cash flow, overall cash flow health remains weak.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.94B	3.03B	2.91B	2.54B	1.69B	1.33B
Gross Profit	1.29B	1.77B	1.72B	400.10M	-55.41M	-401.63M
EBITDA	339.53M	365.76M	109.69M	57.51M	-431.19M	-730.31M
Net Income	-358.54M	-278.76M	-527.61M	-432.10M	-923.77M	-1.27B
Balance Sheet
Total Assets	4.42B	4.63B	4.67B	4.96B	5.29B	6.08B
Cash, Cash Equivalents and Short-Term Investments	447.14M	725.03M	700.18M	794.89M	978.35M	1.50B
Total Debt	5.04B	5.12B	4.89B	4.74B	4.75B	4.67B
Total Liabilities	6.21B	6.23B	6.03B	5.84B	5.79B	5.72B
Stockholders Equity	-1.82B	-1.62B	-1.39B	-884.33M	-508.91M	355.60M
Cash Flow
Free Cash Flow	-45.55M	-13.55M	-31.61M	-349.21M	-472.45M	-838.60M
Operating Cash Flow	29.95M	70.59M	55.81M	-279.72M	-418.15M	-773.18M
Investing Cash Flow	-11.60M	-29.61M	-109.98M	173.98M	-29.43M	-1.29M
Financing Cash Flow	19.95M	39.57M	-94.22M	-75.37M	-50.56M	1.84B

Sabre Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.72
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• 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 1.72 is below the 20-day moving average (MA) of 1.81, below the 50-day MA of 2.61, and below the 200-day MA of 3.05, indicating a bearish trend. The MACD of -0.25 indicates Negative momentum. The RSI at 24.70 is Positive, neither overbought nor oversold. The STOCH value of 22.61 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
TCOM	73 Outperform	$47.51B	19.70	12.94%	0.38%	17.73%	27.95%
EXPE	72 Outperform	$26.24B	25.96	129.04%	0.55%	5.69%	47.33%
MMYT	66 Neutral	$9.52B	113.55	22.38%	―	18.13%	-55.21%
TRIP	66 Neutral	$2.09B	37.75	8.76%	―	3.03%	187.03%
Sector *	61 Neutral	$35.51B	8.11	-11.05%	1.89%	8.55%	-8.72%
YTRA	55 Neutral	$90.17M	―	-0.52%	―	110.35%	91.38%
SABR	47 Neutral	$678.56M	―	20.22%	―	-1.16%	25.63%

Sabre Corporate Events

Sabre Sells Hospitality Solutions to TPG for $1.1B

On July 3, 2025, Sabre Corporation completed the sale of its Hospitality Solutions business to TPG for $1.1 billion, with net proceeds of $960 million after taxes and fees. This transaction is part of Sabre’s strategic transformation to optimize its portfolio, reduce debt, and focus on sustainable growth. The sale also resulted in a one-time cash bonus for Scott Wilson, Executive Vice President, whose employment with Sabre terminated following the transaction.

Sabre Issues $1.325 Billion in Senior Secured Notes

On June 4, 2025, Sabre GLBL Inc., a subsidiary of Sabre Corporation, issued $1.325 billion in senior secured notes due 2030, with an interest rate of 11.125% per year. The proceeds were used to prepay existing loans and repurchase $325 million of existing senior secured notes. The issuance is part of a strategic financial restructuring, impacting the company’s debt profile and potentially affecting stakeholders through changes in credit facilities and covenants.

Sabre Increases Senior Secured Notes Offering

On May 20, 2025, Sabre Corporation announced that its subsidiary, Sabre GLBL Inc., has increased and priced a $1,325,000,000 offering of senior secured notes due 2030, up from the previously announced $975,000,000. The proceeds from this offering will be used to prepay existing borrowings and other indebtedness, with the offering expected to close on June 4, 2025. This strategic financial move is intended to optimize Sabre’s debt structure, potentially impacting its financial stability and market positioning.

Sabre Announces $975 Million Notes Offering

On April 27, 2025, Sabre Corporation announced a definitive agreement to sell its Hospitality Solutions business to Whitney Merger Sub, Inc. for approximately $1.1 billion. The transaction is expected to close by the end of the third quarter of 2025, with proceeds intended to repay part of Sabre’s outstanding debt. Additionally, on May 19, 2025, Sabre GLBL, a subsidiary of Sabre Corporation, announced an offering of $975 million in senior secured notes due 2030. This move is part of Sabre’s strategy to manage its financial obligations and optimize its capital structure.