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 Analysis

Very undervalued with reasonable growth potential.


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

Stable Share Price: SABR's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-29.6%

SABR

-5.5%

US IT

-2.8%

US Market


1 Year Return

-80.3%

SABR

-10.1%

US IT

-15.9%

US Market

Return vs Industry: SABR underperformed the US IT industry which returned -10.1% over the past year.

Return vs Market: SABR underperformed the US Market which returned -15.9% over the past year.


Shareholder returns

SABRIndustryMarket
7 Day-29.6%-5.5%-2.8%
30 Day-57.7%-20.5%-18.8%
90 Day-81.1%-22.3%-24.0%
1 Year-79.4%-80.3%-9.2%-10.1%-14.2%-15.9%
3 Year-77.7%-79.7%51.4%44.9%9.9%2.8%
5 Year-80.6%-83.0%76.2%60.8%27.2%13.3%

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 compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SABR ($4.29) is trading below our estimate of fair value ($24.51)

Significantly Below Fair Value: SABR is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SABR is good value based on its PE Ratio (7.3x) compared to the IT industry average (22.7x).

PE vs Market: SABR is good value based on its PE Ratio (7.3x) compared to the US market (12.2x).


Price to Earnings Growth Ratio

PEG Ratio: SABR is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: SABR is good value based on its PB Ratio (1.3x) compared to the US IT industry average (2.7x).


Next Steps

Future Growth

How is Sabre forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

20.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SABR's forecast earnings growth (20.3% per year) is above the savings rate (1.7%).

Earnings vs Market: SABR's earnings (20.3% per year) are forecast to grow faster than the US market (13.4% per year).

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

Revenue vs Market: SABR's revenue (3.1% per year) is forecast to grow slower than the US market (7% per year).

High Growth Revenue: SABR's revenue (3.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SABR's Return on Equity is forecast to be very high in 3 years time (43.3%).


Next Steps

Past Performance

How has Sabre performed over the past 5 years?

8.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SABR has high quality earnings.

Growing Profit Margin: SABR's current net profit margins (4%) are lower than last year (8.7%).


Past Earnings Growth Analysis

Earnings Trend: SABR's earnings have grown by 8.2% per year over the past 5 years.

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

Earnings vs Industry: SABR had negative earnings growth (-52.2%) over the past year, making it difficult to compare to the IT industry average (13.7%).


Return on Equity

High ROE: SABR's Return on Equity (17.3%) is considered low.


Next Steps

Financial Health

How is Sabre's financial position?


Financial Position Analysis

Short Term Liabilities: SABR's short term assets ($1.1B) exceed its short term liabilities ($1.0B).

Long Term Liabilities: SABR's short term assets ($1.1B) do not cover its long term liabilities ($3.7B).


Debt to Equity History and Analysis

Debt Level: SABR's debt to equity ratio (353.8%) is considered high.

Reducing Debt: SABR's debt to equity ratio has reduced from 3535.3% to 353.8% over the past 5 years.

Debt Coverage: SABR's debt is not well covered by operating cash flow (17.3%).

Interest Coverage: SABR's interest payments on its debt are not well covered by EBIT (2.4x coverage).


Balance Sheet

Inventory Level: SABR has a low level of unsold assets or inventory.

Debt Coverage by Assets: SABR's 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?

13.05%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SABR's dividend (13.05%) is higher than the bottom 25% of dividend payers in the US market (2.07%).

High Dividend: SABR's dividend (13.05%) is in the top 25% of dividend payers in the US market (5.82%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, SABR has been paying a dividend for less than 10 years.

Growing Dividend: SABR's dividend payments have increased, but the company has only paid a dividend for 6 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (95.7%), SABR's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SABR's dividends in 3 years are forecast to be well covered by earnings (48.8% payout ratio).


Next Steps

Management

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

2.8yrs

Average management tenure


CEO

Sean Menke (50yo)

3.33s

Tenure

US$8,785,089

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

Compensation vs Market: Sean's total compensation ($USD8.79M) is above average for companies of similar size in the US market ($USD3.29M).

Compensation vs Earnings: Sean's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Sean Menke
President3.33yrsUS$8.79m0.096% $1.1m
Douglas Barnett
Executive VP & CFO1.75yrsUS$3.61m0.016% $187.6k
Cem Tanyel
Executive VP & President of Airline Solutions1.58yrsUS$2.40m0.0080% $93.5k
Judson Jones
Executive VP & President of Travel Network5.17yrsUS$2.84mno data
David Shirk
Executive VP & President of Travel Solutions2.83yrsUS$3.57m0.029% $345.7k
Michael Gilliland
Chairman Emeritus and Adviser6.08yrsUS$2.37mno data
Joseph DiFonzo
Chief Information Officer2.75yrsno datano data
Kevin Crissey
Vice President of Investor Relationsno datano datano data
Aimee Williams-Ramey
Senior VP & General Counsel1.75yrsno datano data
Kristin Hays
Vice President of Global Communications0.25yrno datano data

2.8yrs

Average Tenure

52.5yo

Average Age

Experienced Management: SABR's management team is considered experienced (2.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Sean Menke
President3.33yrsUS$8.79m0.096% $1.1m
Michael Gilliland
Chairman Emeritus and Adviser6.08yrsUS$2.37mno data
Lawrence Kellner
Independent Director6.67yrsUS$903.05k0.11% $1.3m
Judy Odom
Independent Director6.08yrsUS$280.00k0.0088% $102.9k
Gary Kusin
Independent Director13.08yrsUS$280.00k0.018% $215.5k
Karl Peterson
Independent Chairman0.25yrUS$270.00k0.0037% $42.9k
Joseph Osnoss
Independent Director13.08yrsUS$280.00kno data
Renée James
Independent Director4.67yrsUS$275.00k0.0045% $52.6k
George Bravante
Independent Director5.33yrsUS$265.00k0.0073% $85.6k
Zane Rowe
Independent Director3.92yrsUS$270.00k0.010% $117.6k

5.7yrs

Average Tenure

55yo

Average Age

Experienced Board: SABR's board of directors are considered experienced (5.7 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 not been meaningfully diluted in the past year.


Top Shareholders

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$1.174b
  • Shares outstanding: 273.76m
  • 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
19SBRSE (Berne Stock Exchange)YesClass A Common StockCHCHFApr 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 Solutions, and Hospitality Solutions. The Travel Network segment operates as a business-to-business travel marketplace that offers travel content, such as inventory, prices, and availability from a range of travel suppliers, including airlines, hotels, car rental brands, rail carriers, cruise lines, and tour operators with a network of travel buyers comprising online and offline travel agencies, travel management companies, and corporate travel departments. The Airline Solutions segment provides a portfolio of software technology products and solutions through software-as-a-service (SaaS) and hosted delivery models to airlines and other travel suppliers. Its products include SabreSonic Customer Sales & Service, a reservation system that provides capabilities around managing sales and customer service across an airline’s touch points; Sabre AirVision Marketing & Planning, a set of airline commercial planning solutions; and Sabre AirCentre Enterprise Operations, a set of solutions for planning and management of airline, airport, and customer operations. The Hospitality Solutions segment provides software and solutions to hoteliers through SaaS and hosted delivery model. It offers SynXis, a central reservation system; SynXis Property Manager Solution for property management; and marketing, professional, and revenue management services. The company was founded in 2006 and is headquartered in Southlake, Texas. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/05 03:40
End of Day Share Price2020/04/03 00:00
Earnings2019/12/31
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.