The current trading zone is interesting to the point that investors should pay attention to the stock and anticipate a return of the underlying upward trend.
Summary
● The company has strong fundamentals. More than 70% of companies have a lower mix of growth, profitability, debt and visibility.
● The company has a good ESG score relative to its sector, according to Refinitiv.
Strengths
● The company's EBITDA/Sales ratio is relatively high and results in high margins before depreciation, amortization and taxes.
● The group's activity appears highly profitable thanks to its outperforming net margins.
● There is high visibility into the group's activities for the coming years. Outlooks on future revenues from analysts covering the equity remain similar. Such hardly dispersed estimates support highly predictable sales for the current and upcoming fiscal years.
● Analysts' price targets are all relatively close, reflecting good visibility on the company's valuation.
Weaknesses
● With a 2024 P/E ratio at 24.69 times the estimated earnings, the company operates at rather significant levels of earnings multiples.
● The company's "enterprise value to sales" ratio is among the highest in the world.
● The company appears highly valued given the size of its balance sheet.
● The average consensus view of analysts covering the stock has deteriorated over the past four months.
● Financial statements have repeatedly disappointed market stakeholders. Most often, they were below expectations.
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Amadeus IT Group, S.A. owns and operates the world's No. 1 travel distribution and reservation computer system. The group's system allows travel agencies and airline sales offices to make reservations to hotels, car rental agencies, and service providers (including ocean transportation companies, tour operators, cruise lines, etc.).
The group is also involved in supplying computer services and marketing services for online reservation software and data flow management software.
Net sales are distributed geographically as follows: Spain (2.6%), Germany (6.4%), the United Kingdom (4.7%), France (4.2%), Europe-Middle East-Africa (30.7%), the United States ( 22.4%), America (9%) and Asia-Pacific (20%).
AMADEUS IT GROUP, S.A. 
