OTCPK:AMAD.F

Stock Analysis Report

Executive Summary

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

Rewards

PE ratio (28.7x) is below the IT industry average (33.1x)

Earnings are forecast to grow 7.53% per year

Earnings have grown 12.4% per year over the past 5 years

Risk Analysis

Has a high level of debt

Unstable dividend track record



Snowflake Analysis

Acceptable track record second-rate dividend payer.


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: AMAD.F has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.9%

AMAD.F

2.1%

US IT

1.5%

US Market


1 Year Return

4.0%

AMAD.F

37.2%

US IT

20.1%

US Market

Return vs Industry: AMAD.F underperformed the US IT industry which returned 37.2% over the past year.

Return vs Market: AMAD.F underperformed the US Market which returned 20.1% over the past year.


Shareholder returns

AMAD.FIndustryMarket
7 Day-0.9%2.1%1.5%
30 Day-6.5%4.4%1.4%
90 Dayn/a13.9%8.7%
1 Year4.0%4.0%38.6%37.2%22.7%20.1%
3 Year68.1%68.1%112.3%103.1%50.1%40.5%
5 Year88.3%88.3%148.0%125.8%73.1%54.1%

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

No news available

Valuation

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

28.73x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: AMAD.F ($78.42) is trading above our estimate of fair value ($49.41)

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


Price To Earnings Ratio

PE vs Industry: AMAD.F is good value based on its PE Ratio (28.7x) compared to the IT industry average (33.1x).

PE vs Market: AMAD.F is poor value based on its PE Ratio (28.7x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: AMAD.F is poor value based on its PEG Ratio (3.8x)


Price to Book Ratio

PB vs Industry: AMAD.F is overvalued based on its PB Ratio (8.1x) compared to the US IT industry average (4.3x).


Next Steps

Future Growth

How is Amadeus IT Group forecast to perform in the next 1 to 3 years based on estimates from 24 analysts?

7.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AMAD.F's forecast earnings growth (7.5% per year) is above the savings rate (1.7%).

Earnings vs Market: AMAD.F's earnings (7.5% per year) are forecast to grow slower than the US market (14.5% per year).

High Growth Earnings: AMAD.F's earnings are forecast to grow, but not significantly.

Revenue vs Market: AMAD.F's revenue (4.4% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: AMAD.F's revenue (4.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AMAD.F's Return on Equity is forecast to be high in 3 years time (25.4%)


Next Steps

Past Performance

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

12.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AMAD.F has high quality earnings.

Growing Profit Margin: AMAD.F's current net profit margins (19.9%) are lower than last year (22.1%).


Past Earnings Growth Analysis

Earnings Trend: AMAD.F's earnings have grown by 12.4% per year over the past 5 years.

Accelerating Growth: AMAD.F's earnings growth over the past year (3%) is below its 5-year average (12.4% per year).

Earnings vs Industry: AMAD.F earnings growth over the past year (3%) underperformed the IT industry 12%.


Return on Equity

High ROE: AMAD.F's Return on Equity (28.2%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Amadeus IT Group's financial position?


Financial Position Analysis

Short Term Liabilities: AMAD.F's short term assets (€1.5B) do not cover its short term liabilities (€2.5B).

Long Term Liabilities: AMAD.F's short term assets (€1.5B) do not cover its long term liabilities (€4.2B).


Debt to Equity History and Analysis

Debt Level: AMAD.F's debt to equity ratio (87%) is considered high.

Reducing Debt: AMAD.F's debt to equity ratio has increased from 85.6% to 87% over the past 5 years.

Debt Coverage: AMAD.F's debt is well covered by operating cash flow (52.6%).

Interest Coverage: AMAD.F's interest payments on its debt are well covered by EBIT (32.4x coverage).


Balance Sheet

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

Debt Coverage by Assets: AMAD.F's debt is not covered by short term assets (assets are 0.4x debt).


Next Steps

Dividend

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

1.61%

Current Dividend Yield


Dividend Yield vs Market

company1.6%marketbottom25%1.4%markettop25%3.7%industryaverage1.2%forecastin3Years2.0%

Current dividend yield vs market & industry

Notable Dividend: AMAD.F's dividend (1.61%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: AMAD.F's dividend (1.61%) is low compared to the top 25% of dividend payers in the US market (3.69%).


Stability and Growth of Payments

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

Growing Dividend: AMAD.F's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (26.2%), AMAD.F's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: AMAD.F's dividends in 3 years are forecast to be well covered by earnings (44.2% payout ratio).


Next Steps

Management

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

8.8yrs

Average management tenure


CEO

Luis Maroto Camino 0

9.1yrs

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
President9.1yrs€35.00k0.017% 5.7m
Ana de Pro Gonzalo
Chief Financial Officer10yrsno datano data
Cristina Fernandez
Director of Investor Relations0yrsno datano data
Tomás López Fernebrand
Senior VP21.1yrsno datano data
Sabine Hansen Peck
Senior Vice President of People8.4yrsno datano data
Julia Sattel
President of Airlines10.9yrsno datano data
Francisco Pérez-Lozao Rüter
President of Hospitality8.5yrsno datano data
François Weissert
Senior Vice President of Global Core Development0yrsno datano data
Christophe Bousquet
Senior Vice President of Airlines Research & Development3.1yrsno datano data
Denis Lacroix
Senior Vice President of Core Shared Services Research & Development0.9yrsno datano data

8.8yrs

Average Tenure

Experienced Management: AMAD.F's management team is seasoned and experienced (8.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Luis Maroto Camino
President9.1yrs€35.00k0.017% 5.7m
David Webster
Independent Director9.8yrs€149.00kno data
Pierre Henri Gourgeon
Director14.2yrs€113.00k0.000090% 30.6k
Guillermo de la Dehesa Romero
Independent Vice Chairman9yrs€158.00kno data
Clara Hedwig Frances Furse
Independent Director9.8yrs€145.00kno data
José Antonio Tazón García
Independent Chairman11.1yrs€305.00k0.048% 16.2m
Stephan Gemkow
Independent Director1.7yrs€48.00kno data
Francesco Loredan
Director15yrs€113.00kno data
Nicolas Huss
Independent Director2.7yrs€91.00kno data
Pilar García Ceballos Zúñiga
Independent Director2.2yrs€102.00kno data

9.4yrs

Average Tenure

67.5yo

Average Age

Experienced Board: AMAD.F's board of directors are considered experienced (9.4 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: AMAD.F insiders have only sold shares 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

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


Key Information

  • Name: Amadeus IT Group, S.A.
  • Ticker: AMAD.F
  • Exchange: OTCPK
  • Founded: 1987
  • Industry: Data Processing and Outsourced Services
  • Sector: Software
  • Market Cap: €31.395b
  • Listing Market Cap: €34.040b
  • Shares outstanding: 431.02m
  • 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

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 in two segments, Distribution and IT Solutions. The company acts as an international network providing real-time search, pricing, booking, and ticketing services. It also offers travel providers a portfolio of technology solutions, which automate certain mission-critical business processes and strategic operations, such as sales and reservations, inventory management, and other operational processes. In addition, the company is involved in the provision of software development and definition, regional support, data processing, intermediation, computer consulting, and information technology services; and financing and e-commerce businesses. It serves providers of travel products and services, such as airlines, airports, hotels, tour operators, insurance companies, land and sea transport companies, travel sellers and brokers, travel buyers, and ground handlers. The company was formerly known as Amadeus IT Holding, S.A. and changed its name to Amadeus IT Group, S.A. in August 2016. Amadeus IT Group, S.A. was founded in 1987 and is headquartered in Madrid, Spain. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 00:28
End of Day Share Price2020/02/13 00:00
Earnings2019/09/30
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.