Sabre Corporation EBITDA dropped on 174% and EBITDA Margin dropped on 65.1 pp from 20.3% to -44.9%
02/16/2021 • About Sabre Corporation (
$SABR) • By InTwits
Sabre Corporation reported 2020 financial results today. Here are the key drivers of the company's long term financial model:
- Sabre Corporation is a company in decline: 2020 revenue growth was -66.4%, 5 years revenue CAGR was -14.7%
- EBITDA Margin is quite volatile: -44.9% in 2020, 20.3% in 2019, 25.2% in 2018, 24.9% in 2017, 25.9% in 2016
- Sabre Corporation has medium CAPEX intensity: 5 year average CAPEX/Revenue was 6.7%. At the same time it's in pair with industry average of 3.5%
- CAPEX is quite volatile: $65m in 2020, $115m in 2019, $284m in 2018, $316m in 2017, $328m in 2016
- The company has unprofitable business model: ROIC is -20.3%
- It operates with high leverage: Net Debt/EBITDA is 2.6x while industry average is 1.7x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Sabre Corporation's Revenue dropped on 66.4%. Revenue decline showed acceleration in 20Q4 - it was 66.7% YoY. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 3.6 pp from 16.2% to 19.8% in 2020.
Gross Margin showed almost no change in 2020. During 2016-2020 Gross Margin bottomed in 2018 at 27.8% and was growing since that time. SG&A as a % of Revenue jumped on 28.9 pp from 15.1% to 44.0% in 2020. During 2016-2020 SG&A as a % of Revenue bottomed in 2018 at 13.3% and was growing since that time.
Net Income margin dropped on 99.4 pp from 4.0% to -95.4% in 2020.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 4.9% in 2020. CAPEX/Revenue decreased on 3.9 pp from 8.8% in 2017 to 4.9% in 2020. It's average level of CAPEX/Revenue for the last three years was 5.0%. CAPEX as a % of Revenue declined at -1.6 pp per annum in 2016-2020.
Return on investment
The company operates at negative ROIC (-20.3%) and ROE (-266.6%). ROIC dropped on 28.5 pp from 8.2% to -20.3% in 2020. ROE dropped on 283 pp from 16.6% to -267% in 2020. During 2016-2020 ROIC topped in 2018 at 12.9% and was declining since that time.
Leverage (Debt)
Debt level is 2.6x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA dropped on 3.7x from 3.7x to in 2020. Debt surged on 40.4% while cash jumped on 244%.
Sabre Corporation has no short term refinancing risk: cash is higher than short term debt (2,312.5%).
Management team
Sean E Menke is a the company's CEO. Sean E Menke has spent 4 years with the company. The company's CFO Douglas E Barnett "Doug" has spent 2 years with the company.
Financial and operational results
FY ended 12/31/2020
Sabre Corporation ($SABR) key annual financial indicators| mln. $ | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 3,373 | 3,598 | 3,867 | 3,975 | 1,334 | -66.4% |
| Gross Profit | 1,086 | 1,085 | 1,076 | 2,249 | 755 | -66.4% |
| SG&A | 626 | 510 | 514 | 600 | 586 | -2.3% |
| EBITDA | 874 | 894 | 975 | 805 | -599 | -174.4% |
| EBIT | 460 | 493 | 562 | | | |
| Tax | 87 | 128 | 57 | | | |
| Net Income | 243 | 243 | 338 | 159 | -1,273 | -902.5% |
| Stock Based Compensation | 49 | 45 | 57 | | | |
Balance Sheet
|
|---|
| Cash | 364 | 361 | 509 | 436 | 1,500 | 243.8% |
| Accounts Receivable | 401 | 491 | 508 | | | |
| Accounts Payable | 169 | 163 | 165 | | | |
| Short Term Debt | 169 | 57 | 68 | 109 | 65 | -40.7% |
| Long Term Debt | 3,276 | 3,399 | 3,337 | 3,312 | 4,737 | 43.0% |
Cash flow
|
|---|
| Capex | 328 | 316 | 284 | 115 | 65 | -43.2% |
| Dividends | 144 | 155 | 154 | | | |
| Acquisitions | 164 | | | | | |
Ratios
|
|---|
| Revenue growth | 13.9% | 6.7% | 7.5% | 2.8% | -66.4% | |
| EBITDA growth | 7.7% | 2.4% | 9.1% | -17.5% | -174.4% | |
|
|---|
| Gross Margin | 32.2% | 30.1% | 27.8% | 56.6% | 56.6% | 0.0% |
| EBITDA Margin | 25.9% | 24.9% | 25.2% | 20.3% | -44.9% | -65.1% |
| EBIT Margin | 13.6% | 13.7% | 14.5% | | |
| SG&A, % of revenue | 18.6% | 14.2% | 13.3% | 15.1% | 44.0% | 28.9% |
| SBC, % of revenue | 1.4% | 1.2% | 1.5% | | |
| Net Income Margin | 7.2% | 6.7% | 8.7% | 4.0% | -95.4% | -99.4% |
| CAPEX, % of revenue | 9.7% | 8.8% | 7.3% | 2.9% | 4.9% | 2.0% |
|
|---|
| ROIC | 11.6% | 11.9% | 12.9% | 8.2% | -20.3% | -28.5% |
| ROE | 43.9% | 36.8% | 40.7% | 16.6% | -266.6% | -283.2% |
| Net Debt/EBITDA | 3.5x | 3.5x | 3.0x | 3.7x | |
People
|
|---|
| Insider ownership | 0.6% | 0.6% | 0.6% | | | |
| Employees | 10,000 | 9,000 | 8,860 | | | |
| Revenue/Employee, th. $ | 337 | 400 | 436 | | | |
Sabre Corporation ($SABR) key quoterly financial indicators
| mln. $ | 20Q1 | 20Q2 | 20Q3 | 20Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 659 | 83 | 278 | 314 | | -37.2% | -91.7% | -71.7% | -66.7% |
| EBITDA | -56 | -290 | -144 | -135 | | -125.2% | -250.1% | -166.2% | -184.1% |
| Net Income | -213 | -444 | -310 | -306 | | -474.1% | -1,695.4% | -586.1% | -3,129.6% |
Balance Sheet
|
|---|
| Cash | 684 | 1,306 | 1,668 | 1,500 | | 49.0% | 229.2% | 252.4% | 243.8% |
| Short Term Debt | 103 | 101 | 58 | 65 | | -3.6% | -12.1% | -48.1% | -40.7% |
| Long Term Debt | 3,691 | 4,679 | 4,711 | 4,737 | | 9.5% | 39.6% | 41.6% | 43.0% |
Ratios
|
|---|
| Gross Margin | 7.2% | -322.1% | 58.5% | 61.4% | | -17.7% | -345.8% | 1.1% | 4.5% |
| EBITDA Margin | -8.4% | -349.4% | -51.6% | -43.0% | | -29.4% | -368.7% | -73.7% | -60.0% |
| Net Income Margin | -32.3% | -534.8% | -111.4% | -97.5% | | -37.7% | -537.6% | -117.9% | -98.5% |
Peers in Data Processing & Outsourced Services
Below you can find Sabre Corporation benchmarking vs. other companies in Data Processing & Outsourced Services industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Square, Inc. ($SQ) | - | 29.6% | 49.0% | 42.9% | 101.5% |
| Global Payments Inc. ($GPN) | - | 37.2% | -15.3% | 45.9% | 51.1% |
| Fiserv, Inc. ($FISV) | - | 3.5% | 2.2% | 74.9% | 45.8% |
| NIC Inc. ($EGOV) | - | 5.8% | 2.5% | 2.7% | 30.0% |
| StoneCo Ltd ($STNE) | - | 74.3% | 106.0% | 63.1% | 28.9% |
| |
|---|
| Median (39 companies) | 6.7% | 11.8% | 7.4% | 11.5% | -2.7% |
|---|
| Sabre Corporation ($SABR) | - | 6.7% | 7.5% | 2.8% | -66.4% |
Top companies by Gross margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Verra Mobility Corp ($VRRM) | - | 97.4% | 97.5% | 95.7% | 91.5% |
| EVO Payments, Inc. ($EVOP) | - | - | - | 80.2% | 80.8% |
| StoneCo Ltd ($STNE) | 69.7% | 70.8% | 79.5% | 83.4% | 76.8% |
| WEX Inc. ($WEX) | 54.7% | 58.8% | 63.3% | 61.7% | 56.8% |
| Evertec, Inc. ($EVTC) | 54.9% | 50.7% | 56.6% | 56.2% | 55.6% |
| |
|---|
| Median (31 companies) | 39.5% | 39.5% | 41.0% | 40.3% | 36.5% |
|---|
| Sabre Corporation ($SABR) | 32.2% | 30.1% | 27.8% | 56.6% | 56.6% |
Top companies by EBITDA margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Visa Inc. ($V) | 55.6% | 69.2% | 65.8% | 68.1% | 68.5% |
| Mastercard Incorporated ($MA) | 56.9% | 56.5% | 51.8% | 60.9% | 56.6% |
| FleetCor Technologies, Inc. ($FLT) | 52.0% | 50.8% | 55.9% | 57.6% | 52.2% |
| StoneCo Ltd ($STNE) | 31.4% | 26.0% | 53.0% | 62.4% | 52.1% |
| Black Knight, Inc. ($BKI) | 43.0% | 44.6% | 43.3% | 46.0% | 44.9% |
| |
|---|
| Median (38 companies) | 21.2% | 20.6% | 19.2% | 22.2% | 19.1% |
|---|
| Sabre Corporation ($SABR) | 25.9% | 24.9% | 25.2% | 20.3% | -44.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| PagSeguro Digital Ltd. ($PAGS) | 6.4% | 4.3% | 1.4% | 5.8% | 22.3% |
| StoneCo Ltd ($STNE) | 7.2% | 18.4% | 8.9% | 12.9% | 11.2% |
| Cardtronics plc ($CATM) | 9.9% | 9.6% | 8.0% | 9.3% | 8.3% |
| Verra Mobility Corp ($VRRM) | - | 11.5% | 7.2% | 6.6% | 6.2% |
| Fiserv, Inc. ($FISV) | 5.3% | 5.0% | 6.2% | 7.1% | 6.1% |
| |
|---|
| Median (38 companies) | 3.2% | 2.9% | 3.0% | 3.3% | 3.0% |
|---|
| Sabre Corporation ($SABR) | 9.7% | 8.8% | 7.3% | 2.9% | 4.9% |
Top companies by ROIC, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Mastercard Incorporated ($MA) | 57.5% | 60.6% | 64.7% | 72.7% | 47.6% |
| International Money Express, Inc. ($IMXI) | -1.3% | -1.4% | 12.1% | 36.0% | 31.4% |
| NIC Inc. ($EGOV) | 63.1% | 52.1% | 39.3% | 26.5% | 30.8% |
| Visa Inc. ($V) | 18.1% | 21.9% | 23.0% | 27.2% | 23.2% |
| Western Union Company (The) ($WU) | 10.7% | 11.9% | 27.8% | 21.5% | 22.1% |
| |
|---|
| Median (39 companies) | 11.3% | 10.6% | 10.2% | 8.3% | 6.4% |
|---|
| Sabre Corporation ($SABR) | 11.6% | 11.9% | 12.9% | 8.2% | -20.3% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| WEX Inc. ($WEX) | 6.7x | 4.4x | 3.1x | 3.4x | 12.1x |
| Exela Technologies Inc ($XELAU) | 8.1x | - | 9.7x | - | 10.7x |
| Alliance Data Systems Corporation ($ADS) | 10.7x | 10.1x | 9.0x | 11.7x | 9.2x |
| Verra Mobility Corp ($VRRM) | - | 10.7x | 6.9x | 3.5x | 4.7x |
| GreenSky, Inc. ($GSKY) | -1.5x | -1.5x | 0.5x | 1.5x | 4.6x |
| |
|---|
| Median (36 companies) | 1.3x | 2.3x | 2.0x | 2.1x | 2.0x |
|---|
