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Avolta (DUFRY)
OTHER OTC:DUFRY
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Avolta (DUFRY) AI Stock Analysis

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DUFRY

Avolta

(OTC:DUFRY)

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Neutral 60 (OpenAI - 5.2)
Rating:60Neutral
Price Target:
$6.50
▲(10.73% Upside)
Action:Reiterated
Date:07/31/26
The score is driven mainly by improving fundamentals and strong cash generation, supported by a generally positive earnings-call outlook with reiterated guidance and ongoing buybacks/dividend increases. Offsetting these positives are balance-sheet risk from high leverage and a relatively expensive valuation (high P/E), while technicals indicate near-term weakness versus key short- and medium-term moving averages.
Positive Factors
Revenue recovery and organic growth
Revenue has recovered from pandemic-era weakness, while management continues to target 5–7% organic growth. This supports a durable outlook for expansion across Avolta’s global travel retail and food & beverage concessions.
Negative Factors
High leverage and limited equity cushion
A highly leveraged balance sheet leaves Avolta with limited equity protection and reduces financial flexibility. Although operating leverage has improved, weaker travel demand or execution could make debt reduction slower and increase refinancing risk.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue recovery and organic growth
Revenue has recovered from pandemic-era weakness, while management continues to target 5–7% organic growth. This supports a durable outlook for expansion across Avolta’s global travel retail and food & beverage concessions.
Read all positive factors

Avolta (DUFRY) vs. SPDR S&P 500 ETF (SPY)

Avolta Business Overview & Revenue Model

Company Description
Avolta AG, a company established in 1865 and based in Basel, Switzerland, functions as a leading global entity in the travel retail sector. Renamed in November 2023 from its former identity as Dufry AG, Avolta manages an extensive portfolio of ret...
How the Company Makes Money
Avolta makes money primarily by operating retail and food & beverage concessions in travel environments (most notably airports) under multi-year contracts with airport authorities and other venue operators. Retail revenue is generated from the sal...

Avolta Earnings Call Summary

Earnings Call Date:Jul 30, 2026
(Q2-2026)
|
% Change Since: |
Next Earnings Date:Mar 09, 2027
Earnings Call Sentiment Positive
The call presents a cautiously optimistic, overall positive picture: the company delivered resilient H1 sales (3.7% organic) and core EBITDA (CHF 583m) while generating record Q2 cash flow and continuing deleveraging and shareholder returns. Management also highlighted strategic commercial wins (JFK, Pudong), accretive M&A (Okinawa), and meaningful progress on digital and loyalty initiatives (Club Avolta 20m members). However, material near-term headwinds remain — chiefly the Middle East crisis, large ramp-up costs at Pudong and JFK, and FX-related translation losses — which together depressed margins by roughly ~40 basis points and produced regional volatility. On balance, the positive operational momentum, strong cash generation in Q2, active capital allocation and sustained strategic wins moderately outweigh the temporary headwinds, supporting a cautiously Positive outlook.
Positive Updates
Solid H1 Sales and Organic Growth
Turnover of CHF 6.437 billion in H1 2026 with reported organic growth of 3.7% (would have been 5.2% net of Middle East impact). Growth at constant exchange was 3.1% for the half year.
Negative Updates
Middle East Crisis Headwind
Ongoing Middle East volatility materially impacted results (EMEA only +1.9% organic growth, which would be +4.6% net of the Middle East). Management attributes a meaningful portion of the EBITDA drag to the crisis; Middle East effects are volatile and uncertain.
Read all updates
Q2-2026 Updates
Negative
Solid H1 Sales and Organic Growth
Turnover of CHF 6.437 billion in H1 2026 with reported organic growth of 3.7% (would have been 5.2% net of Middle East impact). Growth at constant exchange was 3.1% for the half year.
Read all positive updates
Company Guidance
Management reiterated mid‑term guidance of 5–7% organic growth, an EBITDA margin expansion of 20–40 basis points per year and year‑on‑year increases in equity free cash flow, while confirming a disciplined capital allocation: dividend = one‑third of cash flow (third consecutive increase), net debt/EBITDA target 1.5–2.0x (temporarily up to 2.5x for M&A), and a EUR 225m share buyback (≈EUR 106m executed by June 30; ~half completed; treasury purchases ≈EUR 160m H1); leverage has improved to ~2.07x (down ~0.1x YoY). H1 figures supporting the outlook included turnover CHF 6.437bn, organic growth 3.7% (5.2% ex‑Middle East), core EBITDA CHF 583m (9.1% margin; 9.5% margin ex‑Middle East and ramp‑up effects), equity free cash flow ~207m, CapEx ~3% of sales in H1, and an expected full‑year FX headwind of ~‑3.5%; management expects ramp‑up headwinds (Pudong/JFK) to fade through 2026 and normalize by 2027.

Avolta Financial Statement Overview

Summary
Operating recovery and profitability improvement since 2022 plus strong, rising free cash flow are key positives. However, the balance sheet is a major constraint: very high leverage (debt ~11.46B vs equity ~1.91B; ~6.0x debt-to-equity) and limited equity cushion raise financial risk despite improving returns.
Income Statement
68
Positive
Balance Sheet
38
Negative
Cash Flow
75
Positive
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue13.90B13.98B13.72B12.79B6.88B3.92B
Gross Profit4.19B8.95B8.80B3.92B4.19B2.21B
EBITDA2.93B2.78B2.84B2.47B1.62B-258.90M
Net Income206.33M190.05M103.00M87.30M58.20M-385.40M
Balance Sheet
Total Assets17.28B16.31B17.40B16.51B9.31B9.99B
Cash, Cash Equivalents and Short-Term Investments989.49M727.83M756.00M769.50M854.70M793.50M
Total Debt12.42B11.46B11.91B11.19B6.58B7.45B
Total Liabilities15.51B14.26B14.88B14.02B8.34B8.96B
Stockholders Equity1.60B1.91B2.35B2.36B893.00M956.60M
Cash Flow
Free Cash Flow2.51B2.30B2.12B1.92B1.40B587.00M
Operating Cash Flow2.94B2.73B2.60B2.36B1.51B678.20M
Investing Cash Flow-525.39M-453.65M-312.00M-1.00M-67.40M-72.80M
Financing Cash Flow-2.37B-2.21B-2.18B-2.40B-1.34B-136.20M

Avolta Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
$27.96B24.0853.29%1.25%2.24%7.35%
72
Outperform
$46.37B20.7048.28%1.10%15.18%7.28%
69
Neutral
$18.43B13.8840.05%4.47%1.45%65.55%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
60
Neutral
$8.18B31.7111.78%2.03%7.88%96.56%
56
Neutral
$19.23B525.770.72%3.37%5.47%-95.54%
56
Neutral
$9.40B48.5144.82%6.14%-32.48%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
DUFRY
Avolta
5.76
0.12
2.15%
BBY
Best Buy Co
82.44
12.69
18.20%
EBAY
eBay
105.62
16.15
18.05%
GPC
Genuine Parts Company
137.51
3.00
2.23%
WSM
Williams-Sonoma
238.40
52.82
28.46%
CHWY
Chewy
22.80
-18.16
-44.34%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 31, 2026