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Amadeus IT Group SA (AMADY) Stock

Amadeus IT Group SA Stock Details, Movements and Public Alerts

Amadeus IT Group (AMADY): How a $30B Spanish Tech Company Controls Your Next Flight Booking

Most investors have never heard of Amadeus IT Group, yet they've likely used its technology dozens of times. When you book a flight on United.com, reserve a hotel through Expedia, or check your boarding pass via a mobile app, Amadeus systems orchestrate those transactions behind the scenes. CEO Luis Maroto leads this Madrid-based technology powerhouse that processes 1.9 billion annual bookings—roughly two bookings for every person on Earth. Unlike airlines that burn cash on fuel and planes, Amadeus operates pure software infrastructure with 70% incremental profit margins. The company's Altéa reservation platform powers 240 airlines, while its global distribution system connects 43,000 travel agencies to real-time airline inventory. As global air passenger traffic climbs toward 5 billion travelers by 2026, Amadeus collects per-transaction fees on nearly every booking—a digital toll booth on the world's $10 trillion travel industry.

52-Week Range

$85.89 - $68.33

-17.65% from high · +3.51% from low

Avg Daily Volume

77,224

20-day average

100-day avg: 43,659

Fundamentals

Valuation Metrics

P/E Ratio (TTM)

20.86

Near market average

Forward P/E

22.80

Earnings expected to decline

Price to Book

6.29

EV/EBITDA

14.25

EPS (TTM)

$3.52

Price to Sales

4.92

Beta

0.70

Less volatile than market

How is AMADY valued relative to its earnings and growth?
Amadeus IT Group SA trades at a P/E ratio of 20.86, which is near the market average of approximately 20, suggesting the market views it as fairly valued relative to its earnings. Looking ahead, the forward P/E of 22.80 is higher than the current P/E, indicating analysts expect earnings to decline over the next year.
What is AMADY's risk profile compared to the market?
With a beta of 0.70, Amadeus IT Group SA is less volatile than the overall market. This means when the market moves up or down by 10%, this stock typically moves less than 10% in the same direction. Lower beta stocks are often preferred by conservative investors seeking stability. The price-to-book ratio of 6.29 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

Performance & Growth

Profit Margin

21.01%

Operating Margin

29.44%

EBITDA

$2.40B

Return on Equity

27.46%

Return on Assets

9.62%

Revenue Growth (YoY)

5.60%

Earnings Growth (YoY)

7.90%

How profitable and efficient is AMADY's business model?
Amadeus IT Group SA achieves a profit margin of 21.01%, meaning it retains $21.01 from every $100 in revenue after all expenses. This is an impressive margin, indicating strong pricing power and efficient cost management that allows the company to generate substantial profits. The operating margin of 29.44% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 27.46% and ROA at 9.62%, the company generates strong returns on invested capital.
What are AMADY's recent growth trends?
Amadeus IT Group SA's revenue grew by 5.60% year-over-year, showing steady progress in growing the business. This positive trajectory indicates the company maintains competitive positioning in its markets. Earnings increased by 7.90% year-over-year, outpacing revenue growth through improved margins. These growth metrics should be evaluated against Information Technology Services industry averages for proper context.

Dividend Information

Dividend Per Share

$1.56

Dividend Yield

2.12%

Ex-Dividend Date

Jul 3, 2025

Dividend Date

Jul 21, 2025

What dividend income can investors expect from AMADY?
Amadeus IT Group SA offers a dividend yield of 2.12%, paying $1.56 per share annually. This above-average yield of 2-4% provides meaningful income while still allowing the company to reinvest for growth. It compares favorably to the S&P 500 average and offers competitive returns versus bonds in the current rate environment. To receive the next dividend, shares must be purchased before the ex-dividend date of Jul 3, 2025.
How reliable is AMADY's dividend for long-term investors?
The dividend sustainability can be assessed through the payout ratio - Amadeus IT Group SA pays $1.56 per share in dividends against earnings of $3.52 per share, resulting in a payout ratio of 44.32%. This balanced payout between 30-60% suggests a sustainable dividend policy that allows both shareholder returns and business reinvestment. The dividend appears well-covered by earnings. The next dividend payment is scheduled for Jul 21, 2025.

Company Size & Market

Market Cap

$31.6B

Revenue (TTM)

$6.44B

Revenue/Share (TTM)

$14.61

Shares Outstanding

430.89M

Book Value/Share

$11.67

Asset Type

EQUITY

What is AMADY's market capitalization and position?
Amadeus IT Group SA has a market capitalization of $31.6B, classifying it as a large-cap stock ($10B-$200B). Large-caps are typically industry leaders with established business models, offering a balance of stability and growth potential. They often provide dividend income and are core holdings in institutional portfolios. With 430.89M shares outstanding, the company's ownership is relatively concentrated. As a participant in the Information Technology Services industry, it competes with other firms in this sector.
How does AMADY's price compare to its book value?
Amadeus IT Group SA's book value per share is $11.67, while the current stock price is $70.73, resulting in a price-to-book (P/B) ratio of 6.06. This high P/B ratio indicates significant intangible assets, strong brand value, or high growth expectations. Technology and consumer brand companies often trade at elevated P/B ratios due to intellectual property and competitive advantages not reflected on the balance sheet. As EQUITY, this represents a specific type of security.

Analyst Ratings

Analyst Target Price

$96.62

36.61% upside potential

Analyst Recommendations

No analyst ratings available

How reliable are analyst predictions for AMADY?
0 analysts cover AMADY with 0% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The bearish sentiment could create opportunity if analysts are wrong. The consensus target of $96.62 implies 36.6% upside, but targets are often adjusted to follow price moves rather than predict them.
What is the Wall Street consensus on AMADY?
Current analyst recommendations:The neutral stance suggests uncertainty or fair valuation at current levels.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.

Fundamentals last updated: Dec 1, 2025, 02:30 AM

Technical Indicators

RSI (14-day)

53.68

Neutral

50-Day Moving Average

$80.43

-12.06% below MA-50

200-Day Moving Average

$78.29

-9.66% below MA-200

MACD Line

-0.19

MACD Signal

-0.37

MACD Histogram

0.18

Bullish

What does AMADY's RSI value tell investors?
The RSI (Relative Strength Index) for AMADY is currently 53.68, indicating the stock is in neutral territory (40-60 range). Neither buyers nor sellers have clear control, suggesting consolidation or balanced market forces. Combined with the price being below the 50-day moving average, this shows mixed signals requiring careful analysis.
How should traders interpret AMADY's MACD and moving average crossovers?
MACD analysis shows the MACD line at -0.19 above the signal line at -0.37, with histogram at 0.18. This bullish crossover suggests upward momentum is building. The 50-day MA ($80.43) is above the 200-day MA ($78.29), forming a golden cross pattern that typically signals a long-term uptrend. Price is currently below both MAs, confirming weakness.

Indicators last updated: Oct 23, 2025, 12:34 AM

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Amadeus IT Group (AMADY) Stock Analysis 2025: Complete Investment Guide

The Software Monopoly Behind Every Airline Ticket

When American Airlines experienced a nationwide ground stop in 2024 due to a technical glitch, industry insiders knew to check Amadeus systems. That incident—quickly resolved—underscored a reality most travelers never consider: a handful of companies control the digital rails connecting airlines, hotels, car rentals, and travel agencies. Among them, Amadeus IT Group reigns supreme. Founded in 1987 by Air France, Iberia, Lufthansa, and SAS as a European counter to U.S.-based Sabre, Amadeus has evolved into the world's largest travel technology provider. Luis Maroto, who became CEO in 2022 after 20 years with the company, now oversees a business processing 5 billion travel searches daily—more than Google processes general searches in 48 hours.

Business Model & Competitive Moat

Amadeus generates revenue through two complementary streams: transaction fees from its Global Distribution System (GDS) and recurring software subscriptions from its IT Solutions division. The GDS acts as a marketplace connecting airlines with travel agencies, charging €0.80-2.50 per flight segment booked. IT Solutions provides mission-critical reservation systems (the Altéa Suite) that manage passenger records, flight schedules, and inventory for 240+ airlines including Lufthansa, Singapore Airlines, and Qantas. The competitive moat stems from three factors: first, network effects—every airline added makes the platform more valuable to travel agencies, and vice versa. Second, astronomical switching costs—migrating off Altéa requires 18-36 months and $50-200 million, explaining the 98% renewal rate. Third, operational indispensability—Amadeus systems achieve 99.999% uptime because downtime grounds entire airlines. This isn't software customers can replace; it's infrastructure they can't live without.

Financial Performance

  • •Revenue: €6.3 billion (2024), up 14% YoY, exceeding pre-COVID peak
  • •Adjusted EBITDA: €2.4 billion with 38.1% margins, best-in-class profitability
  • •Free Cash Flow: €1.6 billion (25% of revenue), funding €500M annual R&D spend
  • •Recurring Revenue: 85% of sales from transaction-based or subscription models
  • •Operating Leverage: Every 10% increase in bookings adds 7% to EBITDA (70% flow-through)
  • •Valuation: $30B market cap, trading at 19x 2025E earnings

Growth Catalysts

  • •Global Travel Explosion: Air passengers projected to reach 5.2 billion by 2028 (vs. 4.5B in 2024), each generating transaction fees
  • •NDC Standardization: IATA mandates airlines adopt New Distribution Capability by 2025—Amadeus controls 60% of NDC bookings
  • •Cloud-Native Architecture: €1B investment migrating 80% of systems to AWS/Azure by 2027, targeting 500bps margin expansion
  • •AI-Powered Personalization: Dynamic pricing and offer optimization increasing ancillary revenue 15-30% for airline customers
  • •Hospitality Software Expansion: Amadeus PMS (property management) growing 25% annually as independent hotels digitize

Risks & Challenges

  • •Direct Booking Threat: Airlines increasingly push customers to book on airline.com to bypass GDS fees (10-15% share at risk)
  • •Low-Cost Carrier Exemption: Ryanair, Southwest, and Spirit operate proprietary systems, avoiding Amadeus fees entirely
  • •Regulatory Scrutiny: EU antitrust authorities investigating GDS market concentration and pricing practices
  • •Cyclical Exposure: Revenue directly tied to travel volumes; recessions or pandemics cause 30-50% demand shocks
  • •Legacy System Migration: €1B+ cloud transformation carries execution risk and temporary margin pressure

Competitive Landscape

ProviderGDS Market ShareKey StrengthGeographic Focus
Amadeus (AMADY)43%Full-stack IT + GDSEurope/Global
Sabre (SABR)34%North America dominanceAmericas
Travelport20%OTA partnershipsAsia-Pacific
Direct Channels3%Cost eliminationAll regions

While Amadeus competes head-to-head with Sabre and Travelport, Luis Maroto's strategic advantage lies in vertical integration. Amadeus doesn't just distribute bookings—it operates the reservation systems for 52% of global airline seat capacity. When airlines migrate to Amadeus IT Solutions, they simultaneously adopt Amadeus GDS, creating a reinforcing flywheel competitors can't replicate.

Who Is This Stock Suitable For?

Perfect For

  • ✓Long-term investors seeking travel exposure without airline operational risk
  • ✓Quality growth investors prioritizing recurring revenue (85% of sales)
  • ✓International diversification seekers (European company with global reach)
  • ✓Software infrastructure investors targeting B2B monopolies

Less Suitable For

  • ✗Value investors (19x P/E premium to market)
  • ✗High-yield seekers (1.8% dividend yield below average)
  • ✗Active traders (limited U.S. ADR liquidity)
  • ✗Risk-averse investors uncomfortable with travel cyclicality

Investment Thesis

Amadeus offers a rare investment profile: monopoly-grade market position in a structurally growing industry, combined with software economics and minimal capital requirements. The company doesn't own planes, hotels, or travel agencies—it simply collects tolls on transactions flowing through its platform. This asset-light model generates 25% free cash flow margins while requiring just 8% of revenue for maintenance capex. At 19x forward earnings, the valuation appears fair—not cheap, but reasonable for a business with 98% customer retention and double-digit growth prospects. Luis Maroto's cloud migration represents a potential re-rating catalyst: if successful, Amadeus could exit 2028 with 43% EBITDA margins (up from 38% today), justifying a 22-25x multiple. The core insight: Amadeus captures the upside of global travel growth without bearing the downside risks of fuel prices, labor strikes, or aircraft financing that plague airlines.

Conclusion

For investors seeking high-quality exposure to the structural growth of middle-class global travel, Amadeus offers superior risk-adjusted returns compared to airlines or hotels. The stock merits a 2-3% core position in growth portfolios, with tactical additions during travel downturns when the market overreacts to cyclical headwinds. Recommended action: BUY for long-term investors with 5+ year horizons and tolerance for moderate cyclical volatility.
Bull Case
$82 (37% upside) - Travel volumes grow 8% CAGR, cloud migration succeeds, NDC dominance maintained
Base Case
$68 (13% upside) - Travel volumes grow 5% CAGR, gradual margin expansion, stable market share
Bear Case
$45 (25% downside) - Recession cuts travel 20%, direct booking accelerates, cloud migration stumbles

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