Education
About Us
Working with TipRanks
Follow Us
Global Business Travel Group (GBTG)
NYSE:GBTG
Top Page
Global Business Travel Group
(NYSE:GBTG)
56Neutral
Positive Factors
Debt Refinancing
GBTG was able to refinance its debt, which should yield significant interest savings going forward.
Financial Performance
GBTG reported a total revenue increase of 8% YoY to $591mn, beating consensus estimates by approximately 1%.
Share Buyback
The Board approved a $300M buyback program, enhancing shareholder value.
Negative Factors
Regulatory Challenges
DOJ is challenging the CWT acquisition, raising questions around future M&A.
Revenue Guidance
Revenue guidance was lowered to a midpoint of $2,425M, with a growth range of 5.5% - 6.5%.
Transaction Growth
Transaction growth decelerated moderately to 3.5%, with most of the deceleration in the Americas.
Global Business Travel Group (GBTG) vs. S&P 500 (SPY)
Market Cap
$3.64B
Dividend YieldN/A
Average Volume (3M)787.70K
Price to Earnings (P/E)―
Beta (1Y)0.90
Revenue Growth5.81%
EPS Growth17.19%
CountryUS
Employees19,000
SectorTechnology
Sector Strength51
IndustrySoftware - Application
Share Statistics
EPS (TTM)-0.30
Shares Outstanding478,412,630
10 Day Avg. Volume935,380
30 Day Avg. Volume787,698
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.50
Price to Cash Flow (P/CF)14.00
P/FCF Ratio27.60
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$10.32Price Target Upside35.61% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
Global Business Travel Group Business Overview & Revenue Model
Company DescriptionGlobal Business Travel Group (GBTG) is a leading provider in the corporate travel management sector, offering comprehensive travel solutions to businesses worldwide. The company specializes in managing business travel, providing services such as booking flights and accommodations, arranging transportation, and offering travel advisory and support services. With a focus on enhancing travel efficiency and optimizing travel budgets, GBTG serves a diverse client base ranging from small enterprises to large multinational corporations.
How the Company Makes MoneyGlobal Business Travel Group (GBTG) generates revenue primarily through service fees charged for managing corporate travel arrangements. These fees can be transaction-based, where a fee is applied per booking or service rendered, or they can be based on a subscription or retainer model, where clients pay a regular fee for ongoing travel management services. Additionally, GBTG earns revenue through partnerships and commissions from airlines, hotels, and other travel service providers when bookings are made through its platform. The company may also offer premium services and technology solutions such as travel data analytics and reporting tools, which can be additional revenue streams. Strategic alliances and preferred supplier agreements also play a significant role in enhancing the company's profitability.
Global Business Travel Group Financial Statement Overview
Summary
Global Business Travel Group demonstrates strong revenue growth and improved cash flow management, aligning with the industry's recovery trend. However, persistent profitability issues and negative margins pose significant challenges. The company has made strides in reducing leverage, yet negative returns on equity indicate ongoing financial pressure.Income Statement
The company has shown a significant recovery in revenue with a growth rate of 5.81% from 2023 to 2024, following a consistent upward trend since 2020. Despite this, the net profit margin remains negative at -5.69%, indicating profitability challenges. The gross profit margin is strong at 60.07%, reflecting efficient cost management in production. However, negative EBIT and EBITDA margins of 4.75% and -5.82% respectively highlight ongoing operational inefficiencies.55
Neutral
Balance Sheet
The company has improved its financial stability with a reduced debt-to-equity ratio of 0.09. The return on equity remains negative at -13.13%, signifying net losses. The equity ratio stands at 28.99%, indicating a balanced capital structure with a moderate level of risk.65
Positive
Cash Flow
The cash flow statement shows a positive trajectory with a significant increase in free cash flow to $165 million in 2024 from $49 million in 2023, marking a growth rate of 236.73%. The operating cash flow to net income ratio is favorable at -1.97, showing robust cash generation relative to losses. The free cash flow to net income ratio is also strong at -1.20, reflecting good cash flow management.70
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 2.42B | 2.29B | 1.85B | 763.00M | 793.00M | Gross Profit |
| 1.46B | 1.33B | 1.02B | 286.00M | 264.00M | EBIT |
| 115.00M | -8.00M | -201.00M | -546.00M | -747.00M | EBITDA |
| -141.00M | 190.00M | -7.00M | -446.00M | -419.00M | Net Income Common Stockholders |
| -138.00M | -63.00M | -226.00M | -467.00M | -614.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 536.00M | 476.00M | 303.00M | 516.00M | 584.00M | Total Assets |
| 3.62B | 3.75B | 3.73B | 3.77B | 2.76B | Total Debt |
| 97.00M | 1.43B | 1.30B | 1.10B | 702.00M | Net Debt |
| -439.00M | 958.00M | 997.00M | 589.00M | 118.00M | Total Liabilities |
| 2.57B | 2.54B | 2.36B | 2.28B | 1.77B | Stockholders Equity |
| 1.05B | 1.21B | 152.00M | 1.49B | 981.00M |
| Cash Flow | Free Cash Flow | |||
| 165.00M | 49.00M | -488.00M | -556.00M | -297.00M | Operating Cash Flow |
| 272.00M | 162.00M | -394.00M | -512.00M | -250.00M | Investing Cash Flow |
| -102.00M | -119.00M | -95.00M | -27.00M | -47.00M | Financing Cash Flow |
| -85.00M | 120.00M | 292.00M | 478.00M | 384.00M |
Global Business Travel Group Technical Analysis
Negative
7.61
Price Trends
8.50
Negative
8.70
Negative
7.84
Negative
Market Momentum
-0.31
Negative
38.09
Neutral
69.88
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GBTG, the sentiment is Negative. The current price of 7.61 is below the 20-day moving average (MA) of 7.91, below the 50-day MA of 8.50, and below the 200-day MA of 7.84, indicating a bearish trend. The MACD of -0.31 indicates Negative momentum. The RSI at 38.09 is Neutral, neither overbought nor oversold. The STOCH value of 69.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $151.52B | 26.74 | -146.32% | 0.76% | 11.11% | 47.03% | |
68 Neutral | $22.40B | 19.21 | 79.84% | ― | 6.64% | 69.85% | |
64 Neutral | $3.15B | 8.82 | -46.70% | 4.24% | 3.52% | 2.49% | |
61 Neutral | $2.09B | 902.42 | 0.55% | ― | 2.63% | -58.77% | |
58 Neutral | $21.97B | 10.49 | -18.75% | 2.40% | 4.80% | -25.17% | |
56 Neutral | $3.64B | ― | -12.22% | ― | 5.81% | 17.19% | |
51 Neutral | $1.35B | ― | 20.22% | ― | 4.19% | 53.84% |
* Technology Sector Average
Performance Comparison
GBTG
Global Business Travel Group
7.61
1.64
27.47%
EXPE
Expedia
173.81
36.79
26.85%
BKNG
Booking Holdings
4,617.26
1,020.36
28.37%
TRIP
TripAdvisor
14.89
-13.27
-47.12%
TNL
Travel + Leisure Co
47.18
1.47
3.22%
SABR
Sabre
3.50
1.20
52.17%
Global Business Travel Group Earnings Call Summary
Earnings Call Date: Feb 27, 2025 | % Change Since: -11.72% | Next Earnings Date: May 13, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong financial performance with record-breaking adjusted EBITDA and revenue, significant free cash flow growth, and high customer retention. However, challenges include a slight downtick in new business wins, muted SME growth, and uncertainty surrounding the CWT acquisition due to regulatory challenges.Highlights
Record Year for Adjusted EBITDA and Revenue
Adjusted EBITDA exceeded the midpoint of the original guidance range, up 26% year over year. Revenue reached $2.42 billion, driven by a 6% increase from solid growth in transactions and TTB.
Strong Free Cash Flow Growth
Free cash flow more than tripled in 2024, ending well above the original guidance. Conversion ratio improved to 35% from 13% in 2023.
High Customer Retention
2024 was a record year for GMN customer retention at 99%, demonstrating strong customer loyalty and satisfaction.
Significant Margin Expansion
Adjusted EBITDA margin expanded by over 300 basis points, reaching 20% for the year.
Successful Capital Allocation
Lowered leverage ratio below two times and completed a $300 million buyback authorization.
Positive Outlook for 2025
Expect another year of double-digit earnings growth, with new wins totaling $2.8 billion in 2024, $2.2 billion from SMEs.
Lowlights
Slight Downtick in New Business Wins
The total estimated value of new wins signed during 2024 was $2.8 billion, down slightly versus the trailing twelve-month number shared last quarter.
Muting SME Customer Growth
SME transaction growth has been muted at 2%, reflecting tightened spending controls driven by higher prices and lower macroeconomic growth.
Currency Exchange Headwinds
FX is expected to be a 2% headwind for revenue in 2025, lowering underlying 5 to 7% constant currency growth to 3 to 5% on a reported basis.
Uncertainty in CWT Acquisition
The US Department of Justice is challenging the merger, creating uncertainty about the timing and outcome of the acquisition.
Company Guidance
During the American Express Global Business Travel earnings call for the fourth quarter and full year 2024, the company reported a record year for adjusted EBITDA and revenue. Adjusted EBITDA grew by 26% year-over-year, surpassing the midpoint of the original guidance range. The adjusted EBITDA margin expanded by over 300 basis points to reach 20%. The company achieved transaction volume growth of 5% for the full year, while total revenue increased by 6% to $2.42 billion. Free cash flow more than tripled, ending well above the initial guidance, and the leverage ratio was reduced to below two times. The company also highlighted significant new business wins valued at $2.8 billion, with SME customers accounting for $2.2 billion of this figure. For 2025, the company anticipates continued double-digit earnings growth, driven by a strategy focused on technology-enabled productivity gains, scalable cost base, and strong free cash flow. They provided guidance for constant currency revenue growth of 5-7% and adjusted EBITDA between $530 million and $560 million, representing an 11-17% increase over 2024.Global Business Travel Group Corporate Events
Executive/Board Changes
Global Business Travel Group Announces Board Resignation
Neutral
Mar 3, 2025
On February 26, 2025, Mr. Mohammed Saif S.S. Al-Sowaidi announced his resignation from the Board of Directors of Global Business Travel Group, Inc., effective February 27, 2025. His departure was not due to any disagreements with the company. The Board appointed Mr. Ugo Arzani to fill the vacancies left by Mr. Al-Sowaidi, with his compensation aligned with the company’s Non-Employee Director Compensation Policy.
M&A TransactionsLegal Proceedings
Global Business Travel Awaits UK CMA Acquisition Decision
Neutral
Feb 18, 2025
On February 18, 2025, Global Business Travel Group announced that the UK Competition and Markets Authority provisionally found no competition concerns with its planned acquisition of CWT Holding, LLC, with a final decision expected by March 9, 2025. Meanwhile, the company is facing a legal challenge from the U.S. Department of Justice seeking to block the transaction. Amex GBT’s leadership believes the acquisition will enhance innovation and value in business travel, despite the DOJ’s opposition.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.