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Global Business Travel Group, Inc. (GBTG)
:GBTG
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Global Business Travel Group
(NYSE:GBTG)
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Rating:68Neutral
Price Target:
$9.00
▲(10.57% Upside)
The overall stock score reflects strong technical momentum and positive earnings call highlights, including strategic acquisitions and improved guidance. However, challenges in profitability and valuation concerns due to a negative P/E ratio and lack of dividend yield moderate the score.
Positive Factors
Revenue Growth
Continued revenue growth highlights the company's ability to expand its market presence and enhance service offerings, contributing to long-term business sustainability.
High Customer Retention
High customer retention indicates strong client satisfaction and loyalty, which can lead to stable revenue streams and potential for upselling additional services.
CWT Acquisition Milestone
The acquisition of CWT is expected to enhance business capabilities and market share, providing strategic growth opportunities and competitive advantages.
Negative Factors
Profitability Challenges
Ongoing profitability challenges may hinder long-term financial health, affecting the company's ability to reinvest in growth and innovation.
Rising Debt Levels
High leverage could limit financial flexibility and increase risk, especially in adverse economic conditions, impacting long-term stability.
APAC Deceleration
Deceleration in the APAC region may indicate regional market challenges, potentially affecting overall growth prospects and revenue diversification.
Global Business Travel Group (GBTG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.90B
Dividend YieldN/A
Average Volume (3M)984.86K
Price to Earnings (P/E)―
Beta (1Y)1.17
Revenue Growth3.61%
EPS Growth-44.99%
CountryUS
Employees19,000
SectorConsumer Cyclical
Sector Strength84
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.03
Shares Outstanding479,016,100
10 Day Avg. Volume1,174,612
30 Day Avg. Volume984,860
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap0.99
Enterprise Value/Revenue1.58
Enterprise Value/Gross Profit2.69
Enterprise Value/Ebitda17.27
Forecast
1Y Price Target
$10.33Price Target Upside26.90% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
Global Business Travel Group Business Overview & Revenue Model
Company DescriptionGlobal Business Travel Group, Inc. provides business-to-business (B2B) travel platform. The company's platform offers a suite of technology-enabled solutions to business travelers and corporate clients, travel content suppliers, and third-party travel agencies. Its platform manages travel, expenses, and meetings and events for companies. The company has built marketplace in B2B travel to deliver unrivalled choice, value, and experiences. Global Business Travel Group, Inc. is based in New York, New York.
How the Company Makes MoneyGlobal Business Travel Group generates revenue primarily through service fees charged to corporate clients for managing their travel programs. This includes fees for booking flights, hotels, and other travel-related services. Additionally, GBTG earns from technology solutions that streamline travel management processes, subscription models for access to their travel management platforms, and commissions from travel service providers. Strategic partnerships with airlines, hotels, and car rental companies further enhance their revenue through negotiated rates and volume-based incentives. The company's ability to provide data analytics and reporting services also contributes to its earnings, as clients seek insights to optimize their travel spend.
Global Business Travel Group Earnings Call Summary
Earnings Call Date:Aug 05, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 11, 2025
Earnings Call Sentiment Positive
The earnings call reflected a strong performance with several key achievements such as record adjusted EBITDA and high customer retention. The company navigated macroeconomic uncertainties well, resulting in raised guidance and a strong balance sheet. However, challenges like revenue yield decline and regional deceleration in APAC were noted. Overall, the positive highlights significantly outweigh the lowlights, indicating a favorable outlook.Q2-2025 Updates
Positive Updates
Record Adjusted EBITDA Achievement
Achieved over $500 million in adjusted EBITDA over the last 12 months, reflecting strong operational efficiency.
High Customer Retention
Maintained a 95% customer retention rate over the last 12 months, demonstrating strong customer loyalty.
CWT Acquisition Milestone
U.S. Department of Justice dismissed its challenge to the CWT acquisition, allowing the transaction to proceed in Q3.
Raised Full Year 2025 Guidance
Increased full-year revenue growth guidance to 2% to 4%, reflecting improved demand and operational performance.
Strong Balance Sheet
Net debt reduced by $70 million, with a leverage ratio decline to 1.6x, indicating financial stability and flexibility.
Positive Transaction Growth
Transaction growth up 3% on a workday adjusted basis, driven by increased demand in May and June.
Negative Updates
April Macroeconomic Uncertainty
Faced a modest decline in corporate travel demand in April due to macroeconomic uncertainty and tariffs.
Revenue Yield Decline
Revenue yield down 10 basis points year-over-year, impacted by a shift to more digital transactions.
APAC Deceleration
APAC region decelerated from 6% growth to 1% growth, primarily due to issues in Australia and the mining sector.
Company Guidance
During the American Express Global Business Travel second quarter 2025 earnings call, the company reported financial results that exceeded expectations, including achieving over $500 million in adjusted EBITDA over the last 12 months. The total transaction value increased by 3% on a workday adjusted basis, reaching $7.9 billion, while revenue rose by 1% to $631 million. The adjusted EBITDA grew by 4% to $133 million, with a margin expansion of 70 basis points year-over-year to 21%. The company reported a high customer retention rate of 95% and total new wins valued at $3.2 billion over the last 12 months, including $2.2 billion from SME customers. The company also highlighted an anticipated 5% year-over-year increase in meetings in the second half of the year. The guidance for full-year 2025 was raised, projecting revenue growth of 2% to 4% and adjusted EBITDA growth of 6% to 13%, with an EBITDA margin expansion of 80 to 180 basis points. The company also plans to close the CWT acquisition in the third quarter and has nearly $1 billion in available liquidity, with plans to initiate a stock repurchase program.Global Business Travel Group Financial Statement Overview
Summary
Global Business Travel Group has shown positive revenue growth and improved margins, but continues to face challenges in achieving profitability. The company has made progress in operational efficiency and cash flow management, yet high leverage and negative return on equity present potential risks.Income Statement
The company has shown significant revenue growth with a 31.4% increase from 2022 to 2023 and a further 5.8% increase from 2023 to 2024. Gross profit margin has improved to 58.9% for TTM, indicating good control over production costs. However, the net profit margin remains negative at -1.8% for TTM due to consistent net losses, reflecting challenges in achieving profitability. The EBIT margin has improved to 6.7% for TTM, showing progress in operating efficiency.65
Positive
Balance Sheet
The debt-to-equity ratio stands at 1.3 for TTM, suggesting a moderate level of leverage that could pose risk if economic conditions worsen. The return on equity is negative at -3.9% for TTM, indicating the company is not generating profits from shareholders' equity. The equity ratio is 29.6% for TTM, showing a stable but slightly below average reliance on equity financing.55
Neutral
Cash Flow
The company has shown positive trends in cash flow, with a strong operating cash flow to net income ratio of -6.3 for TTM, indicating effective cash generation despite net losses. Free cash flow has grown by 4.2% from 2023 to 2024, highlighting improved liquidity management. The free cash flow to net income ratio is -3.8 for TTM, suggesting that the company is generating cash flow despite profitability challenges.70
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.43B | 2.42B | 2.29B | 1.85B | 763.00M | 793.00M |
| Gross Profit | 1.43B | 1.46B | 1.33B | 1.02B | 286.00M | 264.00M |
| EBITDA | 223.00M | 231.00M | 190.00M | -7.00M | -446.00M | -419.00M |
| Net Income | -44.00M | -138.00M | -63.00M | -226.00M | -467.00M | -614.00M |
Balance Sheet | ||||||
| Total Assets | 3.79B | 3.62B | 3.75B | 3.73B | 3.77B | 2.76B |
| Cash, Cash Equivalents and Short-Term Investments | 552.00M | 536.00M | 476.00M | 303.00M | 516.00M | 584.00M |
| Total Debt | 1.46B | 1.46B | 1.43B | 1.30B | 1.10B | 702.00M |
| Total Liabilities | 2.66B | 2.57B | 2.54B | 2.36B | 2.28B | 1.77B |
| Stockholders Equity | 1.12B | 1.05B | 1.21B | 152.00M | 1.49B | 981.00M |
Cash Flow | ||||||
| Free Cash Flow | 167.00M | 165.00M | 49.00M | -488.00M | -556.00M | -297.00M |
| Operating Cash Flow | 276.00M | 272.00M | 162.00M | -394.00M | -512.00M | -250.00M |
| Investing Cash Flow | -95.00M | -102.00M | -119.00M | -95.00M | -27.00M | -47.00M |
| Financing Cash Flow | -100.00M | -85.00M | 120.00M | 292.00M | 478.00M | 384.00M |
Global Business Travel Group Technical Analysis
Positive
8.14
Price Trends
7.44
Positive
6.87
Positive
7.59
Positive
Market Momentum
0.18
Positive
57.08
Neutral
59.90
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GBTG, the sentiment is Positive. The current price of 8.14 is below the 20-day moving average (MA) of 8.18, above the 50-day MA of 7.44, and above the 200-day MA of 7.59, indicating a neutral trend. The MACD of 0.18 indicates Positive momentum. The RSI at 57.08 is Neutral, neither overbought nor oversold. The STOCH value of 59.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GBTG.
Global Business Travel Group Risk Analysis
Global Business Travel Group disclosed 54 risk factors in its most recent earnings report. Global Business Travel Group reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Global Business Travel Group Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $3.90B | ― | -4.72% | ― | 3.61% | -44.99% | |
68 Neutral | 9.18B | 103.15 | 12.58% | ― | 19.94% | 0.00% | |
62 Neutral | 838.10M | -15.01 | -37.20% | ― | 14.79% | 27.52% | |
61 Neutral | 4.70B | -14.66 | -38.05% | ― | 20.42% | -9.39% | |
50 Neutral | 3.35B | -15.88 | -92.63% | ― | 9.74% | 22.36% | |
50 Neutral | 3.07B | -40.65 | -29.58% | ― | 28.35% | 24.57% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
* Consumer Cyclical Sector Average
Performance Comparison
GBTG
Global Business Travel Group
8.14
0.56
7.39%
KC
Kingsoft Cloud Holdings
16.51
14.28
640.36%
GTM
ZoomInfo Technologies
11.83
1.55
15.08%
VERX
Vertex
25.15
-13.15
-34.33%
ASAN
Asana
14.20
2.31
19.43%
FRSH
Freshworks
12.89
1.64
14.58%
Global Business Travel Group Corporate Events
M&A TransactionsBusiness Operations and Strategy
Global Business Travel Group Completes CWT Acquisition
Positive
Sep 2, 2025
On September 2, 2025, Global Business Travel Group, Inc. completed its acquisition of CWT, a global business travel and meetings solutions provider, initially announced in March 2024. The acquisition, valued at approximately $540 million, is expected to enhance Amex GBT’s service offerings and generate significant shareholder value through identified synergies worth $155 million annually within three years. The merger will integrate CWT’s customers and employees into Amex GBT’s extensive suite of travel and expense software solutions, enhancing the company’s industry positioning and operational capacity.
Executive/Board ChangesShareholder Meetings
Global Business Travel Group Elects New Directors
Neutral
Jun 13, 2025
On June 11, 2025, Global Business Travel Group, Inc. held its annual meeting of stockholders where four Class III directors were elected to serve until 2028. Additionally, the appointment of KPMG LLP as the independent registered public accounting firm for the fiscal year 2025 was ratified, indicating a continued focus on maintaining robust financial oversight.
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.