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1. Company Snapshot

1.a. Company Description

Amadeus IT Group, S.A., together with its subsidiaries, operates as a transaction processor for the travel and tourism industry worldwide.The company operates through 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, such as reservations, inventory management, and departure control.In addition, the company is involved in the provision of software development and definition, distribution, regional support, data processing, intermediation, consulting, installation of industrial machinery and equipment, and information technology services; financial activities; and e-commerce business.It serves providers of travel products and services, such as airlines, airports, hotels, tour operators, insurance companies, road 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.

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1.b. Last Insights on AMS

Amadeus IT Group faces uncertainty, with investors questioning the company's growth narrative. Although there's no specific news event driving recent changes, the stock's mid-year momentum remains a point of interest. The company's partnership with Drukair, Royal Bhutan Airlines, may not provide immediate benefits. Amadeus' focus on digital transformation, such as its work with CIT, and innovation, like its travel hackathon, are ongoing efforts. With no recent earnings release or share buyback announcement, investors are left to assess the company's valuation. (Source: Bloomberg)

1.c. Company Highlights

2. Amadeus Beats Expectations with Strong Q3 Results

Amadeus reported a robust financial performance in Q3, with revenue growing 8% to EUR 4,895 million at constant currency, and adjusted EBIT increasing 9% to EUR 1,471 million. The company's EPS came in at EUR 0.854, beating analyst estimates of EUR 0.81. The revenue growth was driven by a 5.2% revenue per booking growth and a strong booking evolution. EBITDA margin stood at 39.1%, while adjusted EBIT margin was 29.8%. The company's free cash flow generation was slightly lower than the previous year, at EUR 955.2 million, down 2.1%.

Publication Date: Nov -08

📋 Highlights
  • Revenue & Margin Growth: Q3 revenue reached EUR 4,895M (+8% at constant currency), adjusted EBIT EUR 1,471M (+9%), with EBITDA margin at 39.1% and adjusted EBIT margin at 29.8%.
  • R&D Investment: Deployed over EUR 1 billion in R&D (10.6% growth), half directed toward AI expansion and solution evolution.
  • AI Integration: Identified 500+ AI use cases, leveraging Agentic AI for travel, with 20 years of AI application history.
  • Customer Expansion: Acquired Ascott Limited for its Central Reservation System in hospitality, expanding market reach.
  • Cloud Migration Progress: 96% of cloud migration completed, expected to finish by early 2026, supporting operational efficiency.

Segmental Performance

Amadeus' Air IT Solutions revenue grew 7.9%, driven by PB volumes and a 4% higher revenue per PB. The Hospitality and Other Solutions segment saw revenue growth of 8.1%, driven by hotel IT, hotel distribution, and business intelligence domains. The company is making significant investments in R&D, with EUR 1 billion deployed into its solutions, technologies, and capabilities, and is leveraging AI to drive further opportunities, with a focus on Agentic AI in travel.

Outlook and Guidance

The company has maintained its 2025 outlook at constant currency, expecting revenue growth to continue. Amadeus expects to deliver 2025 results within the guidance range, with revenues growing at the lower end and EBITDA and adjusted EBIT growing faster than revenues. The guidance assumes some impact from potential flight restrictions in the U.S. The company's medium-term targets and total addressable market (TAM) of EUR 41 billion may need to be revisited due to the evolution of its products and business segments.

Valuation

Amadeus is currently trading at a P/E Ratio of 22.09, P/B Ratio of 5.57, and EV/EBITDA of 12.75. With a ROIC of 14.44% and ROE of 25.88%, the company is demonstrating strong profitability. The Net Debt / EBITDA ratio stands at 0.75, indicating a healthy balance sheet. Analysts estimate next year's revenue growth at 8.1%, which is in line with the company's historical performance and guidance.

3. NewsRoom

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Drukair signs its first global distribution agreement with Amadeus, opening the gateway to Bhutan

Nov -17

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B2B Travel Market Global Forecast Report 2025-2032, Profiles of Key Companies - Booking.com, Alternative Airlines, Amadeus IT Group, Expedia, Travelport, TBO Holidays, MakeMyTrip

Oct -10

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Assessing Amadeus IT Group (BME:AMS) Valuation After Recent Share Price Pause

Oct -06

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Amadeus hosts travel hackathon to boost innovation with agentic AI

Oct -06

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J vs. AMADY: Which Stock Is the Better Value Option?

Oct -02

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AYI or AMADY: Which Is the Better Value Stock Right Now?

Sep -29

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Amadeus chosen by CIT to modernize tech stack and improve content offering

Sep -16

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Assessing Amadeus IT Group (BME:AMS) Valuation as Growth Narrative Meets Recent Share Price Drift

Sep -11

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (9.10%)

6. Segments

Air Distribution

Expected Growth: None%

None

Air IT Solutions

Expected Growth: None%

None

Hospitality & Other Solutions

Expected Growth: 8.8%

The hospitality industry is expected to continue its recovery from the pandemic, driving growth in this segment, while other industries will experience moderate growth.

7. Detailed Products

Amadeus Altéa PSS

A comprehensive passenger service system that enables airlines to manage their sales, inventory, and departure control activities.

Amadeus Selling Platform

A travel agency platform that enables travel agents to search, price, and book travel content from a wide range of suppliers.

Amadeus Travel Platform

A comprehensive travel platform that enables travel agencies to manage their operations, including booking, ticketing, and back-office functions.

Amadeus Hotel Distribution

A hotel distribution system that enables hotels to distribute their inventory to a wide range of travel agencies and online travel agencies.

Amadeus Car Rental Distribution

A car rental distribution system that enables car rental companies to distribute their inventory to a wide range of travel agencies and online travel agencies.

Amadeus Airport IT

A suite of airport IT solutions that enables airports to manage their operations, including passenger processing, baggage handling, and airport operations.

Amadeus Revenue Management

A revenue management system that enables airlines to optimize their revenue through advanced forecasting and pricing techniques.

Amadeus Data Analytics

A data analytics platform that enables airlines and travel agencies to gain insights into their operations and make data-driven decisions.

8. Amadeus IT Group, S.A.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Amadeus IT Group, S.A. operates in a highly competitive industry, but its strong brand recognition and customer loyalty mitigate the threat of substitutes.

Bargaining Power Of Customers

Amadeus IT Group, S.A. has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's products and services are often customized, making it difficult for customers to switch to alternative providers.

Bargaining Power Of Suppliers

Amadeus IT Group, S.A. relies on a few key suppliers for its technology and infrastructure, giving them some bargaining power. However, the company's size and scale of operations mitigate this risk to some extent.

Threat Of New Entrants

The travel technology industry has high barriers to entry, including significant capital requirements and the need for specialized expertise. This limits the threat of new entrants to Amadeus IT Group, S.A.'s business.

Intensity Of Rivalry

The travel technology industry is highly competitive, with several established players competing for market share. Amadeus IT Group, S.A. faces intense competition from companies such as Sabre and Travelport.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 42.47%
Debt Cost 3.95%
Equity Weight 57.53%
Equity Cost 10.17%
WACC 7.53%
Leverage 73.81%

11. Quality Control: Amadeus IT Group, S.A. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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BMW

A-Score: 6.3/10

Value: 9.1

Growth: 5.6

Quality: 2.5

Yield: 8.8

Momentum: 6.5

Volatility: 5.7

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VW

A-Score: 6.3/10

Value: 10.0

Growth: 3.6

Quality: 2.4

Yield: 10.0

Momentum: 5.0

Volatility: 7.0

1-Year Total Return ->

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Mercedes-Benz

A-Score: 6.3/10

Value: 8.9

Growth: 4.9

Quality: 3.3

Yield: 10.0

Momentum: 3.5

Volatility: 7.3

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Booking

A-Score: 6.3/10

Value: 3.8

Growth: 8.7

Quality: 8.0

Yield: 1.0

Momentum: 7.5

Volatility: 8.7

1-Year Total Return ->

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Inditex

A-Score: 5.9/10

Value: 3.6

Growth: 6.2

Quality: 8.6

Yield: 6.2

Momentum: 3.0

Volatility: 8.0

1-Year Total Return ->

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Stock-Card
Amadeus IT

A-Score: 5.5/10

Value: 2.8

Growth: 6.2

Quality: 8.1

Yield: 2.5

Momentum: 5.0

Volatility: 8.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

61.22$

Current Price

61.22$

Potential

-0.00%

Expected Cash-Flows