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Avolta (DUFRY)
:DUFRY
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Avolta
(OTC:DUFRY)
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Rating:74Outperform
Price Target:
$6.00
▲(4.35% Upside)
Dufry AG's strong financial performance and positive earnings call are the primary drivers of its stock score. The technical analysis indicates a stable trend, while valuation concerns slightly offset these strengths. The company's strategic initiatives and resilience in the face of challenges further support its favorable outlook.
Avolta (DUFRY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$8.30B
Dividend Yield1.68%
Average Volume (3M)1.26K
Price to Earnings (P/E)63.0
Beta (1Y)0.98
Revenue Growth6.66%
EPS Growth-2.52%
CountryUS
Employees57,679
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)0.02
Shares Outstanding1,465,096,800
10 Day Avg. Volume0
30 Day Avg. Volume1,259
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap2.58
Enterprise Value/Revenue1.59
Enterprise Value/Gross Profit5.20
Enterprise Value/Ebitda8.31
Forecast
1Y Price Target
$6.00Price Target Upside4.35% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering0
Avolta Business Overview & Revenue Model
Company DescriptionAvolta AG operates as a travel retailer. The company's retail brands include general travel retail shops under the Dufry, World Duty Free, Nuance, Hellenic Duty Free, Colombian Emeralds, Duty Free Uruguay, Hudson, Duty Free Shop Argentina, RegStaer, Autogrill, Hellenic Duty Free, HMSHost, and World Duty Free brands; Dufry shopping stores; brand boutiques; convenience stores primarily under the Hudson brand; and specialized shops and theme stores. It offers perfumes and cosmetics, food and confectionery, wines and spirits, watches and jewelry, fashion and leather, tobacco goods, souvenirs, electronics, soft drinks, packaged food, travel accessories, personal items, sunglasses, destination merchandise, and other products, as well as newspapers, magazines, and books. It operates duty-free and duty-paid shops located at airports, cruise lines, seaports, railway stations, and downtown tourist areas worldwide. The company was formerly known as Dufry AG and changed its name to Avolta AG in November 2023. The company was incorporated in 1865 and is headquartered in Basel, Switzerland.
How the Company Makes MoneyAvolta generates revenue primarily through the sale of products in duty-free retail environments. The company's revenue model is centered around the significant markup on luxury goods, which are sold to international travelers who benefit from tax exemptions. Key revenue streams include sales from cosmetics, fragrances, premium spirits, and confectionery items. Additionally, Avolta benefits from strategic partnerships with renowned luxury brands, which provide exclusive product offerings that attract customers. The company's earnings are further bolstered by its ability to capitalize on seasonal travel trends and promotions, as well as its operational efficiency in high-traffic travel locations.
Avolta Earnings Call Summary
Earnings Call Date:Jul 31, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Mar 10, 2026
Earnings Call Sentiment Positive
The earnings call highlighted strong overall growth, expansion of the loyalty program, and improvements in EBITDA margin despite regional challenges in North America and the Middle East. The praise from Aena and positive cash flow developments further underscore the company's resilience.Q2-2025 Updates
Positive Updates
Strong Organic Growth
The company reported a 7.1% growth at constant exchange rates for the first half of the year, with a strong organic growth of 5.7%, despite challenges such as the U.S. slowdown and geopolitical crises.
EBITDA Margin Improvement
EBITDA margin improved by 30 basis points to 9.3%, aligning with the company's mid-term outlook of a 20 to 40 basis points increase.
Equity Free Cash Flow and Deleveraging
The company generated CHF 216 million in equity free cash flow, enabling a reduction in net debt to EBITDA from 2.35x to 2.15x.
Expansion of Loyalty Program
The Club of Bolta loyalty program reached 13 million members, contributing significantly to sales with members spending 3x the average ticket.
Positive Feedback from Aena
Avolta received praise from Aena, a major airport partner, highlighting successful retail and hybrid concept operations.
Negative Updates
North America Performance
Weakness in North America was attributed to a decrease in the number of domestic passengers, resulting in flat organic growth in that region.
Middle East Crisis Impact
The geopolitical tensions in the Middle East affected growth, with an estimated 0.2% to 0.3% impact on the overall growth in Q2.
Early Terminations in Asia Pacific
The company is undergoing early terminations in Asia Pacific, though specifics about the countries or airports involved were not disclosed.
Company Guidance
During the call, Avolta provided a detailed guidance for the first half of the fiscal year 2025, highlighting a robust performance despite geopolitical challenges. The company reported a 7.1% growth at constant currency and a 5.7% organic growth. The EBITDA margin improved by 30 basis points, reaching 9.3%, while the equity free cash flow amounted to CHF 216 million. Avolta's net debt to EBITDA ratio improved to 2.15x, close to their target of 1.5 to 2x. The company also emphasized their ongoing digital transformation, with their loyalty program, Club of Bolta, reaching 13 million members who spend three times more than average. Avolta reaffirmed its mid-term outlook of 5% to 7% organic growth and EBITDA margin expansion of 20 to 40 basis points annually. They also highlighted their strategic focus on value creation, with plans for progressive dividend growth and share buybacks.Avolta Financial Statement Overview
Summary
Dufry AG demonstrates a strong recovery with robust cash flows and increasing revenues, despite high leverage. The company's profitability metrics and cash conversion rates are impressive, supporting a high financial performance score.Income Statement
Dufry AG has demonstrated a strong recovery in revenue with a notable growth rate of 7.32% from the previous year. The company maintains healthy profitability metrics, with a gross profit margin of 64.13% and a net profit margin of 0.75%. EBIT and EBITDA margins are also robust at 6.81% and 20.73% respectively, indicating operational efficiency.85
Very Positive
Balance Sheet
The balance sheet reflects a high debt-to-equity ratio of 5.07, suggesting significant leverage. However, the return on equity (ROE) stands at 4.39%, showing the company's ability to generate profit from shareholder investments. The equity ratio is at 13.50%, indicating moderate reliance on equity financing.70
Positive
Cash Flow
The cash flow statement is strong with a 10.64% growth in free cash flow. The operating cash flow to net income ratio of 25.29 indicates solid cash conversion. Free cash flow to net income ratio is high at 20.60, demonstrating excellent cash profitability.90
Very Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 13.43B | 13.72B | 12.79B | 6.88B | 3.92B | 2.56B |
| Gross Profit | 4.12B | 8.80B | 3.92B | 4.19B | 2.21B | 1.38B |
| EBITDA | 2.58B | 2.84B | 2.47B | 1.62B | 1.13B | -807.80M |
| Net Income | 126.40M | 103.00M | 87.30M | 58.20M | -385.40M | -2.51B |
Balance Sheet | ||||||
| Total Assets | 17.59B | 17.40B | 16.51B | 9.31B | 9.99B | 11.26B |
| Cash, Cash Equivalents and Short-Term Investments | 973.40M | 756.00M | 769.50M | 854.70M | 793.50M | 360.30M |
| Total Debt | 12.11B | 11.91B | 11.19B | 6.58B | 7.45B | 9.12B |
| Total Liabilities | 15.12B | 14.88B | 14.02B | 8.34B | 8.96B | 10.34B |
| Stockholders Equity | 2.32B | 2.35B | 2.36B | 893.00M | 956.60M | 839.30M |
Cash Flow | ||||||
| Free Cash Flow | 1.91B | 2.12B | 1.92B | 1.40B | 587.00M | -464.30M |
| Operating Cash Flow | 2.39B | 2.60B | 2.36B | 1.51B | 678.20M | -345.30M |
| Investing Cash Flow | -534.80M | -312.00M | -1.00M | -67.40M | -72.80M | -74.90M |
| Financing Cash Flow | -1.89B | -2.18B | -2.40B | -1.34B | -136.20M | 257.00M |
Avolta Technical Analysis
Positive
5.75
Price Trends
5.58
Positive
5.44
Positive
4.85
Positive
Market Momentum
0.06
Negative
53.73
Neutral
56.96
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DUFRY, the sentiment is Positive. The current price of 5.75 is above the 20-day moving average (MA) of 5.70, above the 50-day MA of 5.58, and above the 200-day MA of 4.85, indicating a bullish trend. The MACD of 0.06 indicates Negative momentum. The RSI at 53.73 is Neutral, neither overbought nor oversold. The STOCH value of 56.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DUFRY.
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 |
|---|---|---|---|---|---|---|---|
79 Outperform | 9.11B | 9.91 | 19.36% | 2.60% | -5.24% | -12.89% | |
77 Outperform | 7.28B | 22.29 | 25.38% | 2.66% | 10.93% | -10.89% | |
76 Outperform | 1.62B | 36.02 | 9.66% | ― | 10.68% | 37.84% | |
74 Outperform | $8.30B | 62.96 | 5.58% | 1.68% | 6.66% | -2.52% | |
59 Neutral | 6.35B | 51.22 | -14.58% | ― | 2.38% | -38.88% | |
57 Neutral | 10.75B | -34.57 | 17.86% | ― | 0.87% | 54.67% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
* Consumer Cyclical Sector Average
Performance Comparison
DUFRY
Avolta
5.75
1.64
39.90%
BBY
Best Buy Co
74.19
-20.94
-22.01%
EBAY
eBay
93.36
30.43
48.36%
GPC
Genuine Parts Company
138.61
1.54
1.12%
WSM
Williams-Sonoma
201.11
52.20
35.05%
CHWY
Chewy
37.95
8.32
28.08%
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.