GLOBAL BUSINESS TRAVEL GROUP (GBTG) Stock Fundamental Analysis
NYSE:GBTG - New York Stock Exchange, Inc. - US37890B1008 - Common Stock - Currency: USD
We assign a fundamental rating of 3 out of 10 to GBTG. GBTG was compared to 136 industry peers in the Hotels, Restaurants & Leisure industry. GBTG has a bad profitability rating. Also its financial health evaluation is rather negative. GBTG has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
GBTG had negative earnings in the past year.
In the past year GBTG had a positive cash flow from operations.
GBTG had negative earnings in each of the past 5 years.
The reported operating cash flow has been mixed in the past 5 years: GBTG reported negative operating cash flow in multiple years.
1.2 Ratios
GBTG's Return On Assets of -3.81% is on the low side compared to the rest of the industry. GBTG is outperformed by 75.00% of its industry peers.
GBTG has a Return On Equity (-13.13%) which is in line with its industry peers.
Looking at the Return On Invested Capital, with a value of 3.56%, GBTG is in line with its industry, outperforming 40.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.81% | ||
| ROE | -13.13% | ||
| ROIC | 3.56% |
ROA(3y)-2.05%
ROA(5y)-8.27%
ROE(3y)-11.6%
ROE(5y)-26.03%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With a Operating Margin value of 5.28%, GBTG is not doing good in the industry: 61.76% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of GBTG has declined.
Looking at the Gross Margin, with a value of 60.09%, GBTG is in the better half of the industry, outperforming 73.53% of the companies in the same industry.
In the last couple of years the Gross Margin of GBTG has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.28% | ||
| PM (TTM) | N/A | ||
| GM | 60.09% |
OM growth 3YN/A
OM growth 5Y-12.48%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y17.04%
GM growth 5Y0.55%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), GBTG is destroying value.
The number of shares outstanding for GBTG has been increased compared to 1 year ago.
The number of shares outstanding for GBTG has been increased compared to 5 years ago.
Compared to 1 year ago, GBTG has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.06, we must say that GBTG is in the distress zone and has some risk of bankruptcy.
GBTG's Altman-Z score of 1.06 is on the low side compared to the rest of the industry. GBTG is outperformed by 63.24% of its industry peers.
GBTG has a debt to FCF ratio of 8.39. This is a slightly negative value and a sign of low solvency as GBTG would need 8.39 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 8.39, GBTG is doing good in the industry, outperforming 64.71% of the companies in the same industry.
GBTG has a Debt/Equity ratio of 1.30. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.30, GBTG is in the better half of the industry, outperforming 60.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.3 | ||
| Debt/FCF | 8.39 | ||
| Altman-Z | 1.06 |
ROIC/WACC0.43
WACC8.31%
2.3 Liquidity
GBTG has a Current Ratio of 1.64. This is a normal value and indicates that GBTG is financially healthy and should not expect problems in meeting its short term obligations.
GBTG has a Current ratio of 1.64. This is in the better half of the industry: GBTG outperforms 77.94% of its industry peers.
A Quick Ratio of 1.64 indicates that GBTG should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.64, GBTG is in the better half of the industry, outperforming 79.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.64 | ||
| Quick Ratio | 1.64 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 10.19% over the past year.
GBTG shows a small growth in Revenue. In the last year, the Revenue has grown by 5.81%.
GBTG shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.72% yearly.
EPS 1Y (TTM)10.19%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-66.67%
Revenue 1Y (TTM)5.81%
Revenue growth 3Y46.99%
Revenue growth 5Y2.72%
Sales Q2Q%7.65%
3.2 Future
The Earnings Per Share is expected to grow by 43.99% on average over the next years. This is a very strong growth
GBTG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.89% yearly.
EPS Next Y212.15%
EPS Next 2Y82.43%
EPS Next 3Y54.76%
EPS Next 5Y43.99%
Revenue Next Year4.94%
Revenue Next 2Y5.4%
Revenue Next 3Y5.51%
Revenue Next 5Y6.89%
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for GBTG. In the last year negative earnings were reported.
The Price/Forward Earnings ratio is 15.86, which indicates a correct valuation of GBTG.
73.53% of the companies in the same industry are more expensive than GBTG, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 20.85. GBTG is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 15.86 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GBTG is on the same level as its industry peers.
72.79% of the companies in the same industry are more expensive than GBTG, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.08 | ||
| EV/EBITDA | 12.82 |
4.3 Compensation for Growth
GBTG's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as GBTG's earnings are expected to grow with 54.76% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y82.43%
EPS Next 3Y54.76%
5. Dividend
5.1 Amount
No dividends for GBTG!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
6.58
+0.15 (+2.33%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners31.46%
Inst Owner Change0.06%
Ins Owners0.76%
Ins Owner Change0.89%
Market Cap3.15B
Analysts83.08
Price Target10.64 (61.7%)
Short Float %2.44%
Short Ratio7.38
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-567.81%
Min EPS beat(2)-618.95%
Max EPS beat(2)-516.67%
EPS beat(4)1
Avg EPS beat(4)-266.4%
Min EPS beat(4)-618.95%
Max EPS beat(4)268.07%
EPS beat(8)1
Avg EPS beat(8)-687.93%
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-3.13%
Min Revenue beat(2)-4.6%
Max Revenue beat(2)-1.66%
Revenue beat(4)0
Avg Revenue beat(4)-3.26%
Min Revenue beat(4)-4.6%
Max Revenue beat(4)-1.66%
Revenue beat(8)3
Avg Revenue beat(8)-1.24%
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-0.05%
PT rev (3m)4.11%
EPS NQ rev (1m)-11.09%
EPS NQ rev (3m)199.5%
EPS NY rev (1m)20.01%
EPS NY rev (3m)241.87%
Revenue NQ rev (1m)0.11%
Revenue NQ rev (3m)-2.92%
Revenue NY rev (1m)-0.23%
Revenue NY rev (3m)-1.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 15.86 | ||
| P/S | 1.3 | ||
| P/FCF | 19.08 | ||
| P/OCF | 11.57 | ||
| P/B | 3 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.82 |
EPS(TTM)-0.37
EYN/A
EPS(NY)0.41
Fwd EY6.31%
FCF(TTM)0.34
FCFY5.24%
OCF(TTM)0.57
OCFY8.64%
SpS5.06
BVpS2.2
TBVpS-1.32
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.81% | ||
| ROE | -13.13% | ||
| ROCE | 4.5% | ||
| ROIC | 3.56% | ||
| ROICexc | 4.38% | ||
| ROICexgc | 16.13% | ||
| OM | 5.28% | ||
| PM (TTM) | N/A | ||
| GM | 60.09% | ||
| FCFM | 6.81% |
ROA(3y)-2.05%
ROA(5y)-8.27%
ROE(3y)-11.6%
ROE(5y)-26.03%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y-92.96%
ROICexc growth 3YN/A
ROICexc growth 5Y-94.57%
OM growth 3YN/A
OM growth 5Y-12.48%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y17.04%
GM growth 5Y0.55%
F-Score6
Asset Turnover0.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.3 | ||
| Debt/FCF | 8.39 | ||
| Debt/EBITDA | 4.46 | ||
| Cap/Depr | 60.11% | ||
| Cap/Sales | 4.42% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 88.89% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.64 | ||
| Quick Ratio | 1.64 | ||
| Altman-Z | 1.06 |
F-Score6
WACC8.31%
ROIC/WACC0.43
Cap/Depr(3y)56.67%
Cap/Depr(5y)46.07%
Cap/Sales(3y)4.81%
Cap/Sales(5y)5.22%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)10.19%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-66.67%
EPS Next Y212.15%
EPS Next 2Y82.43%
EPS Next 3Y54.76%
EPS Next 5Y43.99%
Revenue 1Y (TTM)5.81%
Revenue growth 3Y46.99%
Revenue growth 5Y2.72%
Sales Q2Q%7.65%
Revenue Next Year4.94%
Revenue Next 2Y5.4%
Revenue Next 3Y5.51%
Revenue Next 5Y6.89%
EBIT growth 1Y276.47%
EBIT growth 3YN/A
EBIT growth 5Y-10.1%
EBIT Next Year214.79%
EBIT Next 3Y58.49%
EBIT Next 5Y44.43%
FCF growth 1Y236.74%
FCF growth 3YN/A
FCF growth 5Y0%
OCF growth 1Y67.9%
OCF growth 3YN/A
OCF growth 5Y3.68%