BME:AMS

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Amadeus IT Group

Executive Summary

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


Snowflake Analysis

High growth potential with mediocre 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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

6.3%

AMS

6.0%

ES IT

4.2%

ES Market


1 Year Return

-27.5%

AMS

-26.3%

ES IT

-13.0%

ES Market

Return vs Industry: AMS matched the Spanish IT industry which returned -26.6% over the past year.

Return vs Market: AMS underperformed the Spanish Market which returned -12.7% over the past year.


Shareholder returns

AMSIndustryMarket
7 Day6.3%6.0%4.2%
30 Day3.0%2.7%-0.3%
90 Day36.1%32.5%11.4%
1 Year-27.1%-27.5%-25.9%-26.3%-10.2%-13.0%
3 Year-4.3%-7.5%-8.4%-11.2%-19.8%-27.2%
5 Year35.9%27.2%68.9%53.0%-14.0%-27.8%

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?

64.81x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: AMS (€47.94) is trading above our estimate of fair value (€32.15)

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


Price To Earnings Ratio

PE vs Industry: AMS is good value based on its PE Ratio (64.8x) compared to the ES IT industry average (77.1x).

PE vs Market: AMS is poor value based on its PE Ratio (64.8x) compared to the Spanish market (17.4x).


Price to Earnings Growth Ratio

PEG Ratio: AMS is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: AMS is overvalued based on its PB Ratio (5x) compared to the ES IT industry average (2.8x).


Next Steps

Future Growth

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

70.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AMS's forecast earnings growth (70.3% per year) is above the savings rate (1.3%).

Earnings vs Market: AMS's earnings (70.3% per year) are forecast to grow faster than the Spanish market (31.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: AMS's revenue (19.7% per year) is forecast to grow faster than the Spanish market (5.8% per year).

High Growth Revenue: AMS's revenue (19.7% per year) is forecast to grow slower 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 (20.9%)


Next Steps

Past Performance

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

5.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AMS has high quality earnings.

Growing Profit Margin: AMS's current net profit margins (8%) are lower than last year (19.4%).


Past Earnings Growth Analysis

Earnings Trend: AMS's earnings have grown by 5.5% per year over the past 5 years.

Accelerating Growth: AMS's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: AMS had negative earnings growth (-68.5%) over the past year, making it difficult to compare to the IT industry average (-57.2%).


Return on Equity

High ROE: AMS's Return on Equity (7.4%) is considered low.


Next Steps

Financial Health

How is Amadeus IT Group's financial position?


Financial Position Analysis

Short Term Liabilities: AMS's short term assets (€3.0B) exceed its short term liabilities (€2.4B).

Long Term Liabilities: AMS's short term assets (€3.0B) do not cover its long term liabilities (€5.2B).


Debt to Equity History and Analysis

Debt Level: AMS's debt to equity ratio (111.2%) is considered high.

Reducing Debt: AMS's debt to equity ratio has increased from 92.3% to 111.2% over the past 5 years.

Debt Coverage: AMS's debt is well covered by operating cash flow (23%).

Interest Coverage: AMS's interest payments on its debt are well covered by EBIT (10.5x coverage).


Balance Sheet


Next Steps

Dividend

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

1.16%

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?

9.0yrs

Average management tenure


CEO

Luis Maroto Camino

9.58yrs

Tenure

€35,000

Compensation

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


Leadership Team

NamePositionTenureCompensationOwnership
Luis Maroto Camino
President9.58yrs€35.00k0.038%
€ 8.3m
Ana de Pro Gonzalo
Chief Financial Officer10.5yrsno datano data
Cristina Fernandez
Director of Investor Relationsno datano datano data
Tomás López Fernebrand
Senior VP21.58yrsno datano data
Sabine Hansen Peck
Senior Vice President of People8.92yrsno datano data
Julia Sattel
President of Airlines11.42yrsno datano data
Francisco Pérez-Lozao Rüter
President of Hospitality9yrsno datano data
François Weissert
Senior Vice President of Global Core Developmentno datano datano data
Christophe Bousquet
Senior Vice President of Airlines Research & Development3.58yrsno datano data
Denis Lacroix
Senior Vice President of Core Shared Services Research & Development1.42yrsno datano data
Decius Valmorbida
President of Travel Channels3.17yrsno datano data
Wolfgang Krips
Senior Vice President of Corporate Strategy1.42yrsno datano data

9.0yrs

Average Tenure

Experienced Management: AMS's management team is seasoned and experienced (9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Luis Maroto Camino
President9.58yrs€35.00k0.038%
€ 8.3m
David Webster
Independent Director10.25yrs€156.00kno data
Pierre Henri Gourgeon
Director14.67yrs€116.00k0.000090%
€ 19.4k
Clara Hedwig Frances Furse
Independent Director10.33yrs€163.00kno data
José Antonio Tazón García
Independent Chairman11.58yrs€314.00k0.048%
€ 10.3m
Stephan Gemkow
Independent Director2.17yrs€93.00kno data
Francesco Loredan
Director15.5yrs€116.00kno data
Josep Pique Camps
Independent Director1.17yrs€49.00kno data
William L. Connelly
Independent Vice-Chairman0.58yr€49.00kno data
Nicolas Huss
Independent Director3.17yrs€93.00kno data
Pilar García Ceballos Zúñiga
Independent Director2.67yrs€116.00kno data
Peter Kuerpick
Independent Director2.17yrs€116.00kno data

4.7yrs

Average Tenure

63yo

Average Age

Experienced Board: AMS's board of directors are considered experienced (4.7 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 4.4%.


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: €21.562b
  • Shares outstanding: 449.78m
  • Website: https://www.amadeus.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AMSBME (Bolsas y Mercados Espanoles)YesClass A Ordinary SharesESEURApr 2010
AI3ADB (Deutsche Boerse AG)YesClass A Ordinary SharesDEEURApr 2010
AMAD.FOTCPK (Pink Sheets LLC)YesClass A Ordinary SharesUSUSDApr 2010
0P2WLSE (London Stock Exchange)YesClass A Ordinary SharesGBEURApr 2010
AMSEBATS-CHIXE (BATS 'Chi-X Europe')YesClass A Ordinary SharesGBEURApr 2010
AMADWBAG (Wiener Boerse AG)YesClass A Ordinary SharesATEURApr 2010
AMS NBMV (Bolsa Mexicana de Valores)YesClass A Ordinary SharesMXMXNApr 2010
AMAD.YOTCPK (Pink Sheets LLC)UNSPONSORED ADSUSUSDSep 2010
AI3BDB (Deutsche Boerse AG)UNSPONSORED ADSDEEURSep 2010

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 Analysis2020/08/13 21:26
End of Day Share Price2020/08/13 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.