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

-0.3%

SABR

0.4%

US IT

1.8%

US Market


1 Year Return

-14.1%

SABR

23.2%

US IT

7.3%

US Market

Return vs Industry: SABR underperformed the US IT industry which returned 23.2% over the past year.

Return vs Market: SABR underperformed the US Market which returned 7.3% over the past year.


Shareholder returns

SABRIndustryMarket
7 Day-0.3%0.4%1.8%
30 Day-8.0%-0.3%-0.7%
90 Day-7.2%-2.7%0.06%
1 Year-11.9%-14.1%24.4%23.2%9.7%7.3%
3 Year-10.6%-17.0%96.4%88.4%46.3%36.9%
5 Year41.0%26.6%152.6%129.5%64.5%46.5%

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?

30.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: SABR ($21.4) is trading below our estimate of fair value ($30.68)

Significantly Undervalued: SABR is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: SABR is good value based on its PE Ratio (24.5x) compared to the IT industry average (36.9x).

PE vs Market: SABR is poor value based on its PE Ratio (24.5x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: SABR is poor value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: SABR is overvalued based on its PB Ratio (6.4x) compared to the US IT industry average (4.3x).


Next Steps

Future Growth

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

24.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SABR's forecast earnings growth (24.1% per year) is above the savings rate (2.7%).

Earnings vs Market: SABR's earnings (24.1% per year) are forecast to grow faster than the US market (14.6% per year).

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

Revenue vs Market: SABR's revenue (4.1% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: SABR's revenue (4.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: SABR's Return on Equity is forecast to be very high in 3 years time (66.2%).


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

Earnings Trend: SABR's earnings have grown by 12.8% 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 (-32.2%) over the past year, making it difficult to compare to the IT industry average (8.4%).


Return on Equity

High ROE: Whilst SABR's Return on Equity (26.66%) is high, this metric is skewed due to their high level of debt.


Return on Assets

ROA vs Industry: SABR has a higher Return on Assets than the IT industry average last year.


Return on Capital Employed

ROCE Improving: SABR's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Sabre's financial position?


Financial Position Analysis

Short Term Liabilities: SABR's short term assets ($1.2B) exceeds its short term liabilities ($1.1B)

Long Term Liabilities: SABR's short term assets (1.2B) do not cover its long term liabilities (3.7B)


Debt to Equity History and Analysis

Debt Level: SABR's debt to equity ratio (368.5%) is considered high

Reducing Debt: SABR's debt to equity ratio has reduced from 6108.9% to 368.5% over the past 5 years.

Debt Coverage: SABR's debt is not well covered by operating cash flow (18.9%).

Interest Coverage: SABR's interest payments on its debt are well covered by EBIT (3.1x 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?

2.62%

Current Dividend Yield


Dividend Yield vs Market

company2.6%marketbottom25%1.5%markettop25%3.7%industryaverage1.3%forecastin3Years2.9%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: SABR's dividend (2.62%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: SABR's dividend (2.62%) is low compared to the top 25% of dividend payers in the US market (3.72%).

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 5 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (64.2%), SABR's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SABR's dividends in 3 years are forecast to be well covered by earnings (38.6% payout ratio).


Next Steps

Management

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

2.3yrs

Average management tenure


CEO

Sean Menke (50yo)

2.8yrs

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

Compensation vs. Market: Sean's total compensation ($USD10.77M) is about average for companies of similar size in the US market ($USD6.79M).

Compensation vs Earnings: 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

2.3yrs

Average Tenure

52.5yo

Average Age

Experienced Management: SABR's management team is considered experienced (2.3 years average tenure).


Board Age and Tenure

5.6yrs

Average Tenure

58yo

Average Age

Experienced Board: SABR's board of directors are considered experienced (5.6 years average tenure).


Insider Trading

Insider Buying: SABR insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$102,08609 Sep 19
Jay Jones
EntityIndividual
Shares4,300
Max PriceUS$23.74
BuyUS$224,04920 Feb 19
Karl Peterson
EntityIndividual
Role
Member of the Board of Directors
Independent 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: 2.3yrs
    • Compensation: US$6.07m
  • Doug Barnett (59yo)

    Executive VP & CFO

    • Tenure: 1.3yrs
    • Compensation: US$5.72m
  • Sean Menke (50yo)

    President

    • Tenure: 2.8yrs
    • Compensation: US$10.77m
  • Michael Gilliland (56yo)

    Chairman Emeritus and Adviser

    • Tenure: 5.6yrs
    • Compensation: US$2.37m
  • Rodolfo Silva

    Global Head of Corporate Sales & Account Management

    • Tenure: 0yrs
  • Judson Jones (52yo)

    Executive VP & President of Travel Network

    • Tenure: 4.7yrs
    • Compensation: US$3.51m
  • Joe DiFonzo (53yo)

    Chief Information Officer

    • Tenure: 2.3yrs
  • Clinton Anderson (48yo)

    Executive VP & President of Sabre Hospitality Solutions

    • Tenure: 0yrs
    • Compensation: US$2.97m
  • Kim Warmbier (57yo)

    Executive VP & Chief HR Officer

    • Tenure: 1.3yrs
  • Aimee Williams-Ramey

    Senior VP & General Counsel

    • Tenure: 1.3yrs

Board Members

  • Larry Kellner (60yo)

    Independent Chairman

    • Tenure: 6.2yrs
    • Compensation: US$609.61k
  • Judy Odom (66yo)

    Independent Director

    • Tenure: 5.6yrs
    • Compensation: US$276.25k
  • Gary Kusin (68yo)

    Independent Director

    • Tenure: 12.6yrs
    • Compensation: US$276.25k
  • Sean Menke (50yo)

    President

    • Tenure: 2.8yrs
    • Compensation: US$10.77m
  • Karl Peterson (48yo)

    Independent Director

    • Tenure: 12.6yrs
  • Michael Gilliland (56yo)

    Chairman Emeritus and Adviser

    • Tenure: 5.6yrs
    • Compensation: US$2.37m
  • Hervé Couturier (61yo)

    Independent Director

    • Tenure: 1.8yrs
    • Compensation: US$261.78k
  • Joe Osnoss (41yo)

    Independent Director

    • Tenure: 12.6yrs
  • Renée James (54yo)

    Independent Director

    • Tenure: 4.2yrs
    • Compensation: US$268.75k
  • George Bravante (60yo)

    Independent Director

    • Tenure: 4.8yrs
    • 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$5.857b
  • 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 Analysis2019/10/18 00:14
End of Day Share Price2019/10/17 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.