BME:AMS

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Amadeus IT Group

Market Cap

€29.6b

Last Updated

2021/06/14 21:21 UTC

Data Sources

Company Financials +

Executive Summary

Amadeus IT Group, S.A., together with its subsidiaries, operates as a transaction processor for the travel and tourism industry worldwide. More Details


Snowflake Analysis

Exceptional growth potential with worrying balance sheet.


Similar Companies

Share Price & News

How has Amadeus IT Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: AMS is not significantly more volatile than the rest of Spanish stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: AMS's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

5.8%

AMS

6.2%

ES IT

0.9%

ES Market


1 Year Return

35.6%

AMS

34.6%

ES IT

24.0%

ES Market

Return vs Industry: AMS exceeded the Spanish IT industry which returned 34.6% over the past year.

Return vs Market: AMS exceeded the Spanish Market which returned 24% over the past year.


Shareholder returns

AMSIndustryMarket
7 Day5.8%6.2%0.9%
30 Day6.2%5.7%0.5%
90 Day5.5%5.9%5.3%
1 Year35.6%35.6%34.7%34.6%29.3%24.0%
3 Year-7.0%-9.6%-8.0%-10.4%6.4%-3.5%
5 Year72.1%62.2%71.1%62.3%36.2%15.3%

Long-Term Price Volatility Vs. Market

How volatile is Amadeus IT Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Amadeus IT Group undervalued compared to its fair value and its price relative to the market?

7.87x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: AMS (€65.7) is trading above our estimate of fair value (€28.98)

Significantly Below Fair Value: AMS is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: AMS is unprofitable, so we can't compare its PE Ratio to the European IT industry average.

PE vs Market: AMS is unprofitable, so we can't compare its PE Ratio to the Spanish market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate AMS's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: AMS is overvalued based on its PB Ratio (7.9x) compared to the ES IT industry average (3.4x).


Future Growth

How is Amadeus IT Group forecast to perform in the next 1 to 3 years based on estimates from 23 analysts?

63.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AMS is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1%).

Earnings vs Market: AMS is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: AMS's is expected to become profitable in the next 3 years.

Revenue vs Market: AMS's revenue (27.3% per year) is forecast to grow faster than the Spanish market (7.2% per year).

High Growth Revenue: AMS's revenue (27.3% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AMS's Return on Equity is forecast to be high in 3 years time (24.3%)


Past Performance

How has Amadeus IT Group performed over the past 5 years?

-22.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AMS is currently unprofitable.

Growing Profit Margin: AMS is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: AMS is unprofitable, and losses have increased over the past 5 years at a rate of 22.3% per year.

Accelerating Growth: Unable to compare AMS's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: AMS is unprofitable, making it difficult to compare its past year earnings growth to the IT industry (11.7%).


Return on Equity

High ROE: AMS has a negative Return on Equity (-22.39%), as it is currently unprofitable.


Financial Health

How is Amadeus IT Group's financial position?


Financial Position Analysis

Short Term Liabilities: AMS's short term assets (€3.5B) exceed its short term liabilities (€2.8B).

Long Term Liabilities: AMS's short term assets (€3.5B) do not cover its long term liabilities (€5.5B).


Debt to Equity History and Analysis

Debt Level: AMS's debt to equity ratio (153.3%) is considered high.

Reducing Debt: AMS's debt to equity ratio has increased from 107.6% to 153.3% over the past 5 years.

Debt Coverage: AMS's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if AMS's interest payments on its debt are well covered by EBIT.


Balance Sheet


Dividend

What is Amadeus IT Group current dividend yield, its reliability and sustainability?

0.90%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate AMS's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate AMS's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if AMS's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if AMS's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: AMS is not paying a notable dividend for the Spanish market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of AMS's dividend in 3 years as they are not forecast to pay a notable one for the Spanish market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

7.1yrs

Average management tenure


CEO

Luis Maroto Camino

10.42yrs

Tenure

€30,000

Compensation

Mr. Luis Maroto Camino has been the Chief Executive Officer and President at Amadeus IT Group S.A. (formerly, Amadeus IT Group, S.A.) since January 1, 2011. Mr. Maroto Camino served as Managing Director of...


Leadership Team

Experienced Management: AMS's management team is seasoned and experienced (7.1 years average tenure).


Board Members

Experienced Board: AMS's board of directors are considered experienced (5.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Amadeus IT Group, S.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Amadeus IT Group, S.A.
  • Ticker: AMS
  • Exchange: BME
  • Founded: 1987
  • Industry: Data Processing and Outsourced Services
  • Sector: Software
  • Market Cap: €29.601b
  • Shares outstanding: 450.27m
  • Website: https://www.amadeus.com

Number of Employees


Location

  • Amadeus IT Group, S.A.
  • Salvador de Madariaga, 1
  • Madrid
  • Madrid
  • 28027
  • Spain

Listings


Biography

Amadeus IT Group, S.A., together with its subsidiaries, operates as a transaction processor for the travel and tourism industry worldwide. The company operates through two segments, Distribution and IT Sol...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/14 21:21
End of Day Share Price2021/06/14 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.