Sabre (SABR) AI Stock Analysis

• Market Cap: $1.07B
• Dividend Yield: N/A
• Average Volume (3M): 5.98M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.23
• Revenue Growth: 2.56%
• EPS Growth: 69.08%
• Country: US
• Employees: 6,253
• Sector: Consumer Cyclical
• Sector Strength: 63
• Industry: Travel Services
• EPS (TTM): 0.00
• Shares Outstanding: 387,806,550
• 10 Day Avg. Volume: 4,978,253
• 30 Day Avg. Volume: 5,975,785
• PEG Ratio: -0.16
• Price to Book (P/B): -0.79
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -65.74
• Enterprise Value/Market Cap: 5.17
• Enterprise Value/Revenue: 0.46
• Enterprise Value/Gross Profit: 4.19
• Enterprise Value/Ebitda: 3.65
• 1Y Price Target: $4.20
• Price Target Upside: 52.17% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 55 Neutral
• Price Target: $3.00 ▲(8.70%Upside)

Sabre's overall stock score is driven by mixed financial performance with notable revenue growth but persistent profitability and financial risk challenges. Technical analysis presents a neutral short-term outlook, while valuation metrics indicate caution. The optimistic guidance and strategic debt reduction highlighted in the earnings call and corporate events improve the outlook but are balanced by ongoing financial challenges.

Positive Factors

Business 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.

Debt Management

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

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

EBITDA Target Doubts

There are concerns about Sabre's ability to achieve its $700m EBITDA target in the fiscal year 2025, which may impact investor sentiment.

Profitability Challenges

The need to reinvest and higher interest rates are expected to weigh on Sabre's margins and cash flow.

Revenue Concerns

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

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 makes money primarily through transaction fees generated from its Global Distribution System (GDS), where it charges airlines, hotels, car rental companies, and travel agencies for booking and reservation services. Additionally, Sabre earns revenue from its Software-as-a-Service (SaaS) offerings, which include software and technology solutions tailored for the travel industry, such as inventory management, operational software for airlines and hotels, and data analytics services. The company also forms strategic partnerships with travel and technology firms to enhance its service offerings and expand its global reach, contributing to its revenue through collaborative ventures.

Sabre Financial Statement Overview

Summary

Sabre's financial statements show positive revenue growth but are marred by persistent profitability challenges and high financial risk. The income statement indicates increased revenue, yet ongoing net losses. The balance sheet reflects significant financial instability with negative equity and heavy debt. Cash flow remains weak with negative free cash flow, indicating liquidity issues.

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
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
1.77B	1.72B	400.10M	-55.41M	-401.63M
	EBIT
286.16M	47.14M	-123.73M	-665.49M	-988.04M
	EBITDA
365.76M	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
5.12B	4.89B	4.74B	4.75B	4.67B
	Net Debt
4.39B	4.24B	3.95B	3.77B	3.17B
	Total Liabilities
6.23B	6.03B	5.84B	5.79B	5.72B
	Stockholders Equity
-1.62B	-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: Positive
• Last Price: 2.76
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SABR, the sentiment is Positive. The current price of 2.76 is above the 20-day moving average (MA) of 2.71, above the 50-day MA of 2.50, and below the 200-day MA of 3.27, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 56.53 is Neutral, neither overbought nor oversold. The STOCH value of 87.24 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SABR.

Sabre Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EXPE	77 Outperform	$22.44B	20.80	119.16%	0.45%	5.57%	61.19%
MMYT	75 Outperform	$11.03B	119.06	8.33%	―	28.51%	367.34%
TCOM	73 Outperform	$40.56B	18.12	12.49%	0.46%	16.23%	56.05%
TRIP	68 Neutral	$1.85B	38.73	5.91%	―	1.43%	121.44%
Sector *	62 Neutral	$6.88B	11.32	2.95%	3.87%	2.70%	-24.57%
SABR	55 Neutral	$1.07B	―	20.22%	―	2.56%	69.08%
YTRA	55 Neutral	$61.23M	―	-1.95%	―	54.50%	89.80%

Sabre Corporate Events

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.

The most recent analyst rating on (SABR) stock is a Hold with a $4.00 price target. To see the full list of analyst forecasts on Sabre stock, see the SABR Stock Forecast page.

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.

The most recent analyst rating on (SABR) stock is a Hold with a $4.00 price target. To see the full list of analyst forecasts on Sabre stock, see the SABR Stock Forecast page.

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.

The most recent analyst rating on (SABR) stock is a Hold with a $4.00 price target. To see the full list of analyst forecasts on Sabre stock, see the SABR Stock Forecast page.

Sabre Sells Hospitality Solutions to TPG for $1.1B

On April 27, 2025, Sabre Corporation announced a definitive agreement to sell its Hospitality Solutions business to TPG for $1.1 billion. This transaction will allow Sabre to pay down debt and focus on its core airline IT and travel marketplace platforms, while establishing Hospitality Solutions as an independent technology company. The deal is expected to close by the end of the third quarter of 2025, subject to regulatory approvals and customary closing conditions. TPG’s investment is anticipated to drive growth and expansion for Hospitality Solutions, which serves over 40% of the world’s leading hotel brands.

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.