Last Updated: 19 Sep 2024
Executive Summary
Sabre Corpo (SABR) is a leading provider of software and technology solutions for the global travel industry. Despite challenges in the travel sector due to the COVID-19 pandemic, the company has shown signs of recovery and is expected to continue its growth trajectory in the long term.
Company Overview
Sabre Corpo was founded in 1960 and is headquartered in Southlake, Texas. The company serves airlines, travel agents, and other travel-related businesses worldwide. Its core products include reservation systems, revenue management solutions, and data analytics services.
Fundamental Analysis
Revenue: Revenue for the latest quarter (ended June 30, 2024) was $2.98 billion, a 4% increase year-over-year.
EBITDA: Earnings before interest, taxes, depreciation, and amortization (EBITDA) for the latest quarter was $384.6 million, a 10% increase year-over-year.
EPS: Diluted earnings per share (EPS) for the latest quarter was -$1.22.
Profit Margin: The profit margin for the latest quarter was -15%, indicating that the company is still facing challenges in profitability.
Return on Assets (ROA): The ROA for the latest quarter was 4.33%, indicating a modest return on invested capital.
Return on Equity (ROE): The ROE for the latest quarter was -7.37%, indicating that the company is not generating a positive return on shareholder equity.
Technical Analysis
Price: The current stock price is $3.26, within the 52-week trading range of $1.81 to $4.75.
Moving Averages: The stock is trading below both its 50-day and 200-day moving averages.
Support and Resistance: Support is seen at $3.00, while resistance is seen at $3.50.
Short Term Outlook
In the short term, Sabre Corpo is expected to continue to benefit from the recovery in the travel industry. However, the company may face headwinds from rising costs and competition.
Long Term Outlook
In the long term, Sabre Corpo is well-positioned to capitalize on the growing demand for travel technology solutions. The company's strong brand recognition and global reach will continue to drive its growth.
Analyst Recommendations
Analysts have a mixed outlook on Sabre Corpo. Three analysts recommend a "Buy" rating, while five recommend a "Hold" rating. The average analyst target price is $4.33, implying a potential upside of 33%.
