NasdaqGS:SABR

Stock Analysis Report

Executive Summary

Sabre Corporation, through its subsidiary, Sabre Holdings Corporation, provides technology solutions to the travel and tourism industry worldwide.

Snowflake

Fundamentals

Reasonable growth potential with mediocre balance sheet.


Similar Companies

Share Price & News

How has Sabre's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-3.2%

NasdaqGS:SABR

-1.3%

US IT

-1.9%

US Market


1 Year Return

-9.4%

NasdaqGS:SABR

17.3%

US IT

-3.3%

US Market

SABR underperformed the IT industry which returned 17.8% over the past year.

SABR underperformed the Market in United States of America which returned -3% over the past year.


Share holder returns

SABRIndustryMarket
7 Day-3.2%-1.3%-1.9%
30 Day-2.8%-4.6%-6.2%
90 Day15.1%5.9%0.3%
1 Year-7.2%-9.4%18.6%17.3%-1.1%-3.3%
3 Year-11.0%-17.3%96.0%87.7%37.9%28.9%
5 Year40.7%27.0%137.6%113.4%50.8%34.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Sabre undervalued based on future cash flows and its price relative to the stock market?

26%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Sabre's share price is below the future cash flow value, and at a moderate discount (> 20%).

Sabre's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Sabre is good value based on earnings compared to the US IT industry average.

Sabre is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Sabre is poor value based on expected growth next year.


Price Based on Value of Assets

Sabre is overvalued based on assets compared to the US IT industry average.


Next Steps

Future Growth

How is Sabre expected to perform in the next 1 to 3 years based on estimates from 10 analysts?

25.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Sabre's revenue is expected to grow by 4.2% yearly, however this is not considered high growth (20% yearly).

Sabre's earnings are expected to grow significantly at over 20% yearly.

Sabre's revenue growth is positive but not above the United States of America market average.

Sabre's earnings growth is expected to exceed the United States of America market average.

Sabre's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Sabre is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).


Next Steps

Past Performance

How has Sabre performed over the past 5 years?

12.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Sabre's year on year earnings growth rate has been positive over the past 5 years.

Sabre's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Sabre's 1-year earnings growth is negative, it can't be compared to the US IT industry average.


Return on Equity

Whilst Sabre has efficiently used shareholders’ funds last year (Return on Equity greater than 20%), this is metric is skewed due to its high level of debt.


Return on Assets

Sabre used its assets more efficiently than the US IT industry average last year based on Return on Assets.


Return on Capital Employed

Sabre's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Sabre's financial position?


Financial Position Analysis

Sabre is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Sabre's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Sabre's level of debt (368.5%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (6108.9% vs 368.5% today).

Debt is not well covered by operating cash flow (18.9%, less than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 3.1x coverage).


Balance Sheet

Low level of unsold assets.

Debt is not covered by short term assets, assets are 0.3x debt.


Next Steps

Dividend

What is Sabre's current dividend yield, its reliability and sustainability?

2.65%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase Sabre before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

Sabre's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.52%).

Sabre's dividend is below the markets top 25% of dividend payers in United States of America (3.93%).

Whilst dividend payments have been stable, Sabre has been paying a dividend for less than 10 years.

Dividend payments have increased, but Sabre only paid a dividend in the past 5 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.6x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.6x coverage).


Next Steps

Management

What is the CEO of Sabre's salary, the management and board of directors tenure and is there insider trading?

2.2yrs

Average management tenure


CEO

Sean Menke (50yo)

2.7yrs

Tenure

US$10,772,345

Compensation

Mr. Sean E. Menke has been the Chief Executive Officer, President and Director of Sabre Corporation since December 31, 2016. Mr. Menke served as the President of Sabre Travel Network since October 12, 2015 ...


CEO Compensation Analysis

Sean's remuneration is higher than average for companies of similar size in United States of America.

Sean's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

2.2yrs

Average Tenure

52yo

Average Age

The tenure for the Sabre management team is about average.


Board Age and Tenure

5.4yrs

Average Tenure

58yo

Average Age

The tenure for the Sabre board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

BuyUS$224,04920 Feb 19
Karl Peterson
EntityIndividual
Role
Member of the Board of Directors
Director
Shares10,000
Max PriceUS$22.40
SellUS$177,11107 Dec 18
Jay Jones
EntityIndividual
Shares7,064
Max PriceUS$25.07
SellUS$227,13004 Dec 18
Jami Kindle
EntityIndividual
Shares8,719
Max PriceUS$26.05

Ownership Breakdown


Management Team

  • Dave Shirk (52yo)

    Executive VP & President of Travel Solutions Inc.

    • Tenure: 2.2yrs
    • Compensation: US$6.07m
  • Doug Barnett (59yo)

    Executive VP & CFO

    • Tenure: 1.1yrs
    • Compensation: US$5.72m
  • Sean Menke (50yo)

    President

    • Tenure: 2.7yrs
    • Compensation: US$10.77m
  • Michael Gilliland (56yo)

    Chairman Emeritus and Adviser

    • Tenure: 5.4yrs
    • Compensation: US$2.37m
  • Barry Sievert

    Senior Vice President of Corporate Communications & Investor Relations

    • Tenure: 0.0yrs
  • Rodolfo Silva

    Global Head of Corporate Sales & Account Management

    • Tenure: 0.0yrs
  • Judson Jones (52yo)

    Executive VP & President of Travel Network

    • Tenure: 4.5yrs
    • Compensation: US$3.51m
  • Joe DiFonzo (53yo)

    Chief Information Officer

    • Tenure: 2.1yrs
  • Clinton Anderson (48yo)

    Executive VP & President of Sabre Hospitality Solutions

    • Tenure: 0.0yrs
    • Compensation: US$2.97m
  • Aimee Williams-Ramey

    Senior VP & General Counsel

    • Tenure: 1.1yrs

Board Members

  • Larry Kellner (60yo)

    Chairman

    • Tenure: 6.0yrs
    • Compensation: US$609.61k
  • Judy Odom (66yo)

    Director

    • Tenure: 5.4yrs
    • Compensation: US$276.25k
  • Gary Kusin (68yo)

    Director

    • Tenure: 12.4yrs
    • Compensation: US$276.25k
  • Sean Menke (50yo)

    President

    • Tenure: 2.7yrs
    • Compensation: US$10.77m
  • Karl Peterson (48yo)

    Director

    • Tenure: 12.4yrs
  • Michael Gilliland (56yo)

    Chairman Emeritus and Adviser

    • Tenure: 5.4yrs
    • Compensation: US$2.37m
  • Hervé Couturier (61yo)

    Director

    • Tenure: 1.7yrs
    • Compensation: US$261.78k
  • Joe Osnoss (41yo)

    Director

    • Tenure: 12.4yrs
  • Renée James (54yo)

    Director

    • Tenure: 4.0yrs
    • Compensation: US$268.75k
  • George Bravante (60yo)

    Director

    • Tenure: 4.7yrs
    • Compensation: US$261.25k

Company Information

Sabre Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sabre Corporation
  • Ticker: SABR
  • Exchange: NasdaqGS
  • Founded: 2006
  • Industry: Data Processing and Outsourced Services
  • Sector: Software
  • Market Cap: US$6.338b
  • Shares outstanding: 273.68m
  • Website: https://www.sabre.com

Number of Employees


Location

  • Sabre Corporation
  • 3150 Sabre Drive
  • Southlake
  • Texas
  • 76092
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SABRNasdaqGS (Nasdaq Global Select)YesClass A Common StockUSUSDApr 2014
19SDB (Deutsche Boerse AG)YesClass A Common StockDEEURApr 2014

Biography

Sabre Corporation, through its subsidiary, Sabre Holdings Corporation, provides technology solutions to the travel and tourism industry worldwide. It operates in three segments: Travel Network, Airline Sol ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/26 00:42
End of Day Share Price2019/08/23 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.