Sabre Corp (NASDAQ: SABR)

Sector: Technology Industry: Software - Infrastructure CIK: 0001597033
Market Cap 580.87 Mn
P/B -0.60
P/E 1.05
P/S 0.20
ROIC (Qtr) 11.40
Div Yield % 0.00
Rev 1y % (Qtr) 3.45
Total Debt (Qtr) 4.22 Bn
Debt/Equity (Qtr) -4.36

About

Sabre Corporation, also known by its stock symbol SABR, is a technology company that operates within the travel industry. The company aims to be a valued global technology partner in travel by connecting the world's leading travel suppliers with travel buyers in a comprehensive travel marketplace. Sabre's business activities revolve around two primary segments: Travel Solutions and Hospitality Solutions. Travel Solutions provides global travel solutions for both travel suppliers and travel buyers, offering a diverse portfolio of software technology...

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Price action

Investment thesis

Bull case

  • Healthy cash reserves of 682.75M provide 4.46x coverage of short-term debt 152.99M, demonstrating strong liquidity position and minimal refinancing risk.
  • Operating cash flow of (165.41M) provides exceptional 342.47x coverage of minority interest expenses (483000), showing strong core operations.
  • Tangible assets of 1.70B provide exceptional 30.62x coverage of deferred revenue 55.40M, showing strong service capability backing.
  • Robust tangible asset base of 1.70B provides 12.19x coverage of working capital 139.16M, indicating strong operational backing.
  • Cash reserves of 682.75M provide solid 3.65x coverage of other non-current liabilities 186.89M, indicating strong liquidity.

Bear case

  • Operating cash flow of (165.41M) provides insufficient coverage of deferred revenue obligations of 55.40M, which is -2.99x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of (165.41M) shows concerning coverage of stock compensation expenses of 48.56M, with a -3.41 ratio indicating potential earnings quality issues.
  • Free cash flow of (231.66M) provides weak coverage of capital expenditures of 66.25M, with a -3.50 ratio suggesting additional external financing needs for growth initiatives.
  • Tax assets of 7.04M provide limited offset against tax liabilities of 40.56M, which is 0.17x, indicating potential future cash flow pressure from tax obligations.
  • Cash position of 682.75M provides only 1.42x coverage of interest expenses of 479.84M, indicating potential refinancing risks in a rising rate environment.

Geographical Breakdown of Revenue (2024)

Segments Breakdown of Revenue (2024)

Peer comparison

Companies in the Software - Infrastructure
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 MSFT Microsoft Corp 3,563.59 Bn 33.97 12.13 60.56 Bn
2 ORCL Oracle Corp 561.87 Bn 36.43 9.21 124.39 Bn
3 PLTR Palantir Technologies Inc. 413.65 Bn 377.64 106.17 0.24 Bn
4 PANW Palo Alto Networks Inc 126.45 Bn 113.19 13.23 0.35 Bn
5 CRWD CrowdStrike Holdings, Inc. 116.42 Bn -370.56 25.50 0.82 Bn
6 SNPS Synopsys Inc 86.06 Bn 64.60 12.20 14.29 Bn
7 NET Cloudflare, Inc. 62.78 Bn -609.27 31.18 3.50 Bn
8 FTNT Fortinet, Inc. 60.83 Bn 32.47 9.28 1.00 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.18 2.69
EV to Cash from Ops. EV/CFO -31.28 28.91
EV to Debt EV to Debt 1.23 19.83
EV to EBIT EV/EBIT 5.21 -9.95
EV to EBITDA EV/EBITDA 11.43 6.82
EV to Free Cash Flow [EV/FCF] EV/FCF -22.33 26.09
EV to Market Cap EV to Market Cap 8.91 0.36
EV to Revenue EV/Rev 1.79 -9.34
Price to Book Value [P/B] P/B -0.60 3.88
Price to Earnings [P/E] P/E 1.05 -10.66
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.00 -0.30
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 2.71
Dividend per Basic Share Div per Share (Qtr) 0.00 0.10
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 1.68
Interest Coverage Int. cover (Qtr) 2.07 -14.20
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 20.81 -408.01
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -1.02 226.39
Dividend Growth (1y) % Div 1y % (Qtr) 0.00 -0.28
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 350.56 25.27
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 25.78 47.48
EBIT Growth (1y) % EBIT 1y % (Qtr) 371.06 20.13
EBT Growth (1y) % EBT 1y % (Qtr) 292.40 14.16
EPS Growth (1y) % EPS 1y % (Qtr) 282.89 67.50
FCF Growth (1y) % FCF 1y % (Qtr) -3,455.92 296.60
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 10.14 46.75
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.66 0.67
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.01
Cash Ratio Cash Ratio (Qtr) 0.67 1.22
Current Ratio Curr Ratio (Qtr) 1.14 2.59
Debt to Equity Ratio Debt/Equity (Qtr) -4.36 -0.96
Interest Cover Ratio Int Coverage (Qtr) 2.07 -14.20
Times Interest Earned Times Interest Earned (Qtr) 2.07 -14.20
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 38.10 -548.16
EBIT Margin % EBIT Margin % (Qtr) 34.29 -199.84
EBT Margin % EBT Margin % (Qtr) 17.70 -607.20
Gross Margin % Gross Margin % (Qtr) 31.50 51.88
Net Profit Margin % Net Margin % (Qtr) 19.10 -610.00