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Sabre (SABR)
NASDAQ:SABR
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Sabre
(NASDAQ:SABR)58Neutral
Positive Factors
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.
Negative Factors
Corporate Travel Shift
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.
Interest Expense and Leverage
Interest expense and leverage remains high, but Sabre managed to push large debt maturities further out.
Sabre (SABR) vs. S&P 500 (SPY)
Market Cap
$1.56B
Dividend YieldN/A
Average Volume (3M)4.17M
Price to Earnings (P/E)―
Beta (1Y)1.94
Revenue Growth4.19%
EPS Growth53.84%
CountryUS
Employees6,232
SectorConsumer Cyclical
Sector Strength53
IndustryHotels, Lodging & Leisure
Share Statistics
EPS (TTM)-0.73
Shares Outstanding386,006,320
10 Day Avg. Volume6,611,919
30 Day Avg. Volume4,170,085
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.50
Price to Cash Flow (P/CF)4.60
P/FCF Ratio5.70
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$4.54Price Target Upside9.13% Upside
Rating ConsensusHold
Number of Analyst Covering6
Sabre Business Overview & Revenue Model
Company DescriptionSabre Corp. is a technology solutions provider to the global travel and tourism industry. It provides data-driven business intelligence, mobile, distribution and software-as-a-service solutions. The company operates through the following segments: Travel Network, Airline Solutions and Hospitality Solutions. The Travel Network segment is a global B2B travel marketplace for travel suppliers and travel buyers. The Airline Solutions segment offers a portfolio of software technology products and solutions, through software-as-a-service. The Hospitality Solutions segment provides software and solutions, through SaaS and hosted delivery model, to hoteliers around the world. Sabre was founded in December 2006 and is headquartered in Southlake, TX.
How the Company Makes MoneySabre 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
Sabre is facing significant financial challenges, with consistent losses and a negative equity position indicating solvency concerns. While there is some revenue recovery and positive cash flow from operations, these are not sufficient to offset broader financial issues.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.45
Neutral
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.30
Negative
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.50
Neutral
| 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
Positive
4.16
Price Trends
3.62
Positive
3.65
Positive
3.36
Positive
Market Momentum
0.17
Negative
60.82
Neutral
41.46
Neutral
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 4.16 is above the 20-day moving average (MA) of 3.83, above the 50-day MA of 3.62, and above the 200-day MA of 3.36, indicating a bullish trend. The MACD of 0.17 indicates Negative momentum. The RSI at 60.82 is Neutral, neither overbought nor oversold. The STOCH value of 41.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SABR.
Sabre Risk Analysis
Sabre disclosed 34 risk factors in its most recent earnings report. Sabre 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
Sabre Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $160.74B | 28.37 | -146.32% | 0.71% | 11.11% | 47.03% | |
72 Outperform | $24.32B | 20.86 | 79.25% | ― | 6.64% | 69.85% | |
68 Neutral | $14.68B | 37.12 | 180.92% | ― | 4.11% | 3328.10% | |
62 Neutral | $1.94B | 835.76 | 0.53% | ― | 2.63% | -58.77% | |
61 Neutral | $5.29B | 242.38 | 2.97% | ― | 31.39% | ― | |
60 Neutral | $13.01B | 10.45 | 0.79% | 3.53% | 1.60% | -22.47% | |
58 Neutral | $1.56B | ― | 20.22% | ― | 4.19% | 53.84% |
* Consumer Cyclical Sector Average
Performance Comparison
SABR
Sabre
4.16
1.98
90.83%
EXPE
Expedia
190.99
58.49
44.14%
BKNG
Booking Holdings
4,917.46
1,519.56
44.72%
TRIP
TripAdvisor
13.69
-13.08
-48.86%
LYFT
Lyft
12.36
-5.94
-32.46%
CHWY
Chewy
36.88
19.62
113.67%
Sabre Earnings Call Summary
Earnings Call Date: Feb 20, 2025 | % Change Since: 22.71% | Next Earnings Date: May 6, 2025
Earnings Call Sentiment Positive
Sabre Corporation's earnings call reflected strong financial performance and strategic progress, particularly in expanding margins, achieving significant EBITDA growth, and completing a major technology transformation. However, challenges remain with negative free cash flow and flat IT Solutions revenue. The company has a positive outlook for 2025, expecting significant growth and improved financial metrics.Highlights
Significant Margin Expansion and EBITDA Growth
Sabre Corporation achieved a 53% year-on-year increase in adjusted EBITDA, totaling $517 million for the year, surpassing initial guidance of greater than $500 million. The company also expanded its margin by 550 basis points.
Strong Revenue Growth in Hospitality Solutions
Hospitality Solutions reached an all-time high in total revenue, driven by increased CRS transactions and new customer deployments. This resulted in a $25 million increase in adjusted EBITDA for the segment.
Successful Technology Transformation
Sabre Corporation completed its technology transformation with over 99% of compute capacity migrated to the cloud, achieving more than $150 million in cost benefits compared to 2019 and 2023.
Double-Digit Growth in Hotel and Air Distribution Bookings
The company saw double-digit year-on-year growth in hotel distribution bookings and an increase in air distribution bookings, indicating strong commercial progress.
Strong Financial Guidance for 2025
For 2025, Sabre Corporation expects high single-digit year-on-year revenue growth, adjusted EBITDA of greater than $700 million, and free cash flow of greater than $200 million.
Lowlights
Negative Free Cash Flow in 2024
The company reported negative free cash flow of $14 million for 2024, attributed to $19 million in debt modification costs related to refinancing.
IT Solutions Revenue Flat in Q4 2024
IT Solutions revenue was roughly flat year-on-year in Q4 2024, totaling $145 million, indicating challenges in this segment.
Lower Average Booking Fee Expected
The average booking fee is expected to be slightly lower in 2025 due to geographic mix and growth in NDC and LCC content, impacting gross margin.
Company Guidance
During the call, Sabre Corporation provided detailed financial guidance for 2025, projecting high single-digit year-on-year revenue growth, with adjusted EBITDA expected to exceed $700 million and free cash flow surpassing $200 million. The company anticipates substantial contributions from signed commercial wins, with more than 30 million incremental air bookings expected. Sabre's hospitality solutions are also projected to achieve double-digit CRS transaction growth, driven by existing and new business implementations, including Hyatt. The company's strategic focus includes generating free cash flow, deleveraging the balance sheet, and investing in a modern technology stack, open marketplace, and intelligent retailing solutions. The guidance reflects a strong trajectory of growth with expectations for increased volume and revenue, supported by a successful technology transformation and strategic partnerships.Sabre Corporate Events
Executive/Board ChangesShareholder Meetings
Karl Peterson Retires from Sabre Board of Directors
Neutral
Feb 6, 2025
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.
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.