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 2 out of 10 to GBTG. GBTG was compared to 134 industry peers in the Hotels, Restaurants & Leisure industry. GBTG may be in some trouble as it scores bad on both profitability and health. While showing a medium growth rate, GBTG is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
GBTG had negative earnings in the past year.
In the past 5 years GBTG always reported negative net income.
In multiple years GBTG reported negative operating cash flow during the last 5 years.
1.2 Ratios
The Return On Assets of GBTG (-1.16%) is worse than 69.40% of its industry peers.
GBTG has a Return On Equity (-3.93%) which is comparable to the rest of the industry.
The Return On Invested Capital of GBTG (4.45%) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.16% | ||
| ROE | -3.93% | ||
| ROIC | 4.45% |
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 Operating Margin (6.66%) which is in line with its industry peers.
GBTG's Operating Margin has declined in the last couple of years.
The Gross Margin of GBTG (60.85%) is better than 72.39% 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 | 6.66% | ||
| PM (TTM) | N/A | ||
| GM | 60.85% |
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
GBTG has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, GBTG has more shares outstanding
GBTG has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, GBTG has a worse debt to assets ratio.
2.2 Solvency
GBTG has an Altman-Z score of 1.07. This is a bad value and indicates that GBTG is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.07, GBTG is not doing good in the industry: 63.43% of the companies in the same industry are doing better.
A Debt/Equity ratio of 1.22 is on the high side and indicates that GBTG has dependencies on debt financing.
GBTG has a better Debt to Equity ratio (1.22) than 60.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.22 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.07 |
ROIC/WACC0.53
WACC8.47%
2.3 Liquidity
GBTG has a Current Ratio of 1.60. 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 Current ratio value of 1.60, GBTG is doing good in the industry, outperforming 78.36% of the companies in the same industry.
A Quick Ratio of 1.60 indicates that GBTG should not have too much problems paying its short term obligations.
GBTG's Quick ratio of 1.60 is fine compared to the rest of the industry. GBTG outperforms 79.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.6 | ||
| Quick Ratio | 1.6 |
3. Growth
3.1 Past
GBTG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 46.43%, which is quite impressive.
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)46.43%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%400%
Revenue 1Y (TTM)5.81%
Revenue growth 3Y46.99%
Revenue growth 5Y2.72%
Sales Q2Q%1.8%
3.2 Future
Based on estimates for the next years, GBTG will show a very strong growth in Earnings Per Share. The EPS will grow by 43.99% on average per year.
The Revenue is expected to grow by 6.89% on average over the next years.
EPS Next Y177.88%
EPS Next 2Y70.26%
EPS Next 3Y47.38%
EPS Next 5Y43.99%
Revenue Next Year0.08%
Revenue Next 2Y2.1%
Revenue Next 3Y3.43%
Revenue Next 5Y6.89%
3.3 Evolution
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
GBTG reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
GBTG is valuated rather expensively with a Price/Forward Earnings ratio of 18.74.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GBTG indicates a somewhat cheap valuation: GBTG is cheaper than 60.45% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of GBTG to the average of the S&P500 Index (22.13), we can say GBTG is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 18.74 |
4.2 Price Multiples
GBTG's Enterprise Value to EBITDA ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.22 |
4.3 Compensation for Growth
The 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 47.38% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y70.26%
EPS Next 3Y47.38%
5. Dividend
5.1 Amount
GBTG does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
6.23
+0.02 (+0.32%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners31.46%
Inst Owner Change1.33%
Ins Owners0.76%
Ins Owner Change0.89%
Market Cap2.98B
Analysts83.08
Price Target10.64 (70.79%)
Short Float %2.85%
Short Ratio6.15
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)-259.23%
Min EPS beat(2)-516.67%
Max EPS beat(2)-1.8%
EPS beat(4)1
Avg EPS beat(4)-217.34%
Min EPS beat(4)-618.95%
Max EPS beat(4)268.07%
EPS beat(8)1
Avg EPS beat(8)-654.7%
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)-2.78%
Min Revenue beat(2)-3.91%
Max Revenue beat(2)-1.66%
Revenue beat(4)0
Avg Revenue beat(4)-3.18%
Min Revenue beat(4)-4.6%
Max Revenue beat(4)-1.66%
Revenue beat(8)2
Avg Revenue beat(8)-1.78%
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%
PT rev (3m)2.07%
EPS NQ rev (1m)-54.75%
EPS NQ rev (3m)-42.86%
EPS NY rev (1m)-30.56%
EPS NY rev (3m)-16.67%
Revenue NQ rev (1m)-4.42%
Revenue NQ rev (3m)-6.48%
Revenue NY rev (1m)-4.63%
Revenue NY rev (3m)-5.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 18.74 | ||
| P/S | 1.23 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 2.66 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.22 |
EPS(TTM)-0.21
EYN/A
EPS(NY)0.33
Fwd EY5.34%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS5.08
BVpS2.34
TBVpS-1.18
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.16% | ||
| ROE | -3.93% | ||
| ROCE | 5.63% | ||
| ROIC | 4.45% | ||
| ROICexc | 5.51% | ||
| ROICexgc | 20.15% | ||
| OM | 6.66% | ||
| PM (TTM) | N/A | ||
| GM | 60.85% | ||
| FCFM | N/A |
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-ScoreN/A
Asset Turnover0.64
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.22 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.01 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.6 | ||
| Quick Ratio | 1.6 | ||
| Altman-Z | 1.07 |
F-ScoreN/A
WACC8.47%
ROIC/WACC0.53
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)46.43%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%400%
EPS Next Y177.88%
EPS Next 2Y70.26%
EPS Next 3Y47.38%
EPS Next 5Y43.99%
Revenue 1Y (TTM)5.81%
Revenue growth 3Y46.99%
Revenue growth 5Y2.72%
Sales Q2Q%1.8%
Revenue Next Year0.08%
Revenue Next 2Y2.1%
Revenue Next 3Y3.43%
Revenue Next 5Y6.89%
EBIT growth 1Y276.47%
EBIT growth 3YN/A
EBIT growth 5Y-10.1%
EBIT Next Year187.61%
EBIT Next 3Y51.61%
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%