GLOBAL BUSINESS TRAVEL GROUP (GBTG) Stock Fundamental Analysis
NYSE:GBTG - New York Stock Exchange, Inc. - US37890B1008 - Common Stock - Currency: USD
Taking everything into account, GBTG scores 3 out of 10 in our fundamental rating. GBTG was compared to 135 industry peers in the Hotels, Restaurants & Leisure industry. GBTG may be in some trouble as it scores bad on both profitability and health. GBTG has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year GBTG has reported negative net income.
GBTG had a positive operating cash flow in the past year.
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
Looking at the Return On Assets, with a value of -3.81%, GBTG is doing worse than 73.33% of the companies in the same industry.
GBTG's Return On Equity of -13.13% is in line compared to the rest of the industry. GBTG outperforms 43.70% of its industry peers.
GBTG's Return On Invested Capital of 3.56% is in line compared to the rest of the industry. GBTG outperforms 40.74% of its industry peers.
| 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
GBTG has a worse Operating Margin (5.28%) than 60.74% of its industry peers.
GBTG's Operating Margin has declined in the last couple of years.
GBTG has a better Gross Margin (60.09%) than 72.59% of its industry peers.
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.
GBTG has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, GBTG has more shares outstanding
GBTG has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.23, we must say that GBTG is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.23, GBTG perfoms like the industry average, outperforming 40.74% of the companies in the same industry.
The Debt to FCF ratio of GBTG is 8.39, which is on the high side as it means it would take GBTG, 8.39 years of fcf income to pay off all of its debts.
GBTG's Debt to FCF ratio of 8.39 is fine compared to the rest of the industry. GBTG outperforms 62.96% of its industry peers.
A Debt/Equity ratio of 1.30 is on the high side and indicates that GBTG has dependencies on debt financing.
With a decent Debt to Equity ratio value of 1.30, GBTG is doing good in the industry, outperforming 60.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.3 | ||
| Debt/FCF | 8.39 | ||
| Altman-Z | 1.23 |
ROIC/WACC0.41
WACC8.75%
2.3 Liquidity
A Current Ratio of 1.64 indicates that GBTG should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.64, GBTG is in the better half of the industry, outperforming 77.04% of the companies in the same industry.
GBTG has a Quick 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.
With a decent Quick ratio value of 1.64, GBTG is doing good in the industry, outperforming 78.52% 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 impressive 44.17% over the past year.
GBTG shows a small growth in Revenue. In the last year, the Revenue has grown by 5.81%.
Measured over the past years, GBTG shows a small growth in Revenue. The Revenue has been growing by 2.72% on average per year.
EPS 1Y (TTM)44.17%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%70.59%
Revenue 1Y (TTM)5.81%
Revenue growth 3Y46.99%
Revenue growth 5Y2.72%
Sales Q2Q%7.65%
3.2 Future
GBTG is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 54.28% yearly.
The Revenue is expected to grow by 6.89% on average over the next years.
EPS Next Y250.34%
EPS Next 2Y101.91%
EPS Next 3Y90.18%
EPS Next 5Y54.28%
Revenue Next Year5.18%
Revenue Next 2Y5.32%
Revenue Next 3Y5.34%
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
GBTG reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Based on the Price/Forward Earnings ratio of 23.34, the valuation of GBTG can be described as rather expensive.
GBTG's Price/Forward Earnings is on the same level as the industry average.
GBTG is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 23.34 |
4.2 Price Multiples
GBTG's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of GBTG indicates a somewhat cheap valuation: GBTG is cheaper than 69.63% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.03 | ||
| EV/EBITDA | 15.19 |
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 90.18% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y101.91%
EPS Next 3Y90.18%
5. Dividend
5.1 Amount
GBTG does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
8.07
+0.09 (+1.13%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners31.46%
Inst Owner Change-1.38%
Ins Owners0.76%
Ins Owner Change0.89%
Market Cap3.80B
Analysts81.67
Price Target10.64 (31.85%)
Short Float %2.28%
Short Ratio6.75
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)-396.24%
Min EPS beat(2)-618.95%
Max EPS beat(2)-173.53%
EPS beat(4)1
Avg EPS beat(4)-180.61%
Min EPS beat(4)-618.95%
Max EPS beat(4)268.07%
EPS beat(8)1
Avg EPS beat(8)-645.04%
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)2.12%
PT rev (3m)11.59%
EPS NQ rev (1m)0%
EPS NQ rev (3m)141.68%
EPS NY rev (1m)0%
EPS NY rev (3m)242.42%
Revenue NQ rev (1m)-0.63%
Revenue NQ rev (3m)-1.53%
Revenue NY rev (1m)-0.92%
Revenue NY rev (3m)-0.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 23.34 | ||
| P/S | 1.57 | ||
| P/FCF | 23.03 | ||
| P/OCF | 13.97 | ||
| P/B | 3.62 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.19 |
EPS(TTM)-0.23
EYN/A
EPS(NY)0.35
Fwd EY4.28%
FCF(TTM)0.35
FCFY4.34%
OCF(TTM)0.58
OCFY7.16%
SpS5.15
BVpS2.23
TBVpS-1.34
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 | 1.23 |
F-Score6
WACC8.75%
ROIC/WACC0.41
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)44.17%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%70.59%
EPS Next Y250.34%
EPS Next 2Y101.91%
EPS Next 3Y90.18%
EPS Next 5Y54.28%
Revenue 1Y (TTM)5.81%
Revenue growth 3Y46.99%
Revenue growth 5Y2.72%
Sales Q2Q%7.65%
Revenue Next Year5.18%
Revenue Next 2Y5.32%
Revenue Next 3Y5.34%
Revenue Next 5Y6.89%
EBIT growth 1Y276.47%
EBIT growth 3YN/A
EBIT growth 5Y-10.1%
EBIT Next Year212.56%
EBIT Next 3Y61.52%
EBIT Next 5Y44.7%
FCF growth 1Y236.74%
FCF growth 3YN/A
FCF growth 5Y0%
OCF growth 1Y67.9%
OCF growth 3YN/A
OCF growth 5Y3.68%