Global Business Travel Group, Inc.
Global Business Travel Group, Inc. Fundamental Analysis
Global Business Travel Group, Inc. (GBTG) shows weak financial fundamentals with a PE ratio of 55.72, profit margin of 2.93%, and ROE of 5.79%. The company generates $3.0B in annual revenue with moderate year-over-year growth of 5.81%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 29.8/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze GBTG's fundamental strength across five key dimensions:
Efficiency Score
WeakGBTG struggles to generate sufficient returns from assets.
Valuation Score
ModerateGBTG shows balanced valuation metrics.
Growth Score
ModerateGBTG shows steady but slowing expansion.
Financial Health Score
ExcellentGBTG maintains a strong and stable balance sheet.
Profitability Score
WeakGBTG struggles to sustain strong margins.
Key Financial Metrics
Is GBTG Expensive or Cheap?
P/E Ratio
GBTG trades at 55.72 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, GBTG's PEG of 0.06 indicates potential undervaluation.
Price to Book
The market values Global Business Travel Group, Inc. at 2.98 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 9.68 times EBITDA. This is generally considered low.
How Well Does GBTG Make Money?
Net Profit Margin
For every $100 in sales, Global Business Travel Group, Inc. keeps $2.93 as profit after all expenses.
Operating Margin
Core operations generate 4.39 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $5.79 in profit for every $100 of shareholder equity.
ROA
Global Business Travel Group, Inc. generates $1.69 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Global Business Travel Group, Inc. generates limited operating cash flow of $167.78M, signaling weaker underlying cash strength.
Free Cash Flow
Global Business Travel Group, Inc. generates weak or negative free cash flow of $26.44M, restricting financial flexibility.
FCF Per Share
Each share generates $0.05 in free cash annually.
FCF Yield
GBTG converts 0.53% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
55.72
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.06
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.98
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.66
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.00
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.18
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.06
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How GBTG Stacks Against Its Sector Peers
| Metric | GBTG Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 55.72 | 36.81 | Worse (Expensive) |
| ROE | 5.79% | 974.00% | Weak |
| Net Margin | 2.93% | 5914823191.00% | Weak |
| Debt/Equity | 1.00 | 0.34 | Weak (High Leverage) |
| Current Ratio | 1.18 | 4.93 | Neutral |
| ROA | 1.69% | -294975.00% (disorted) | Weak |
GBTG outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Global Business Travel Group, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-68.18%
Industry Style: Growth, Innovation, High Beta
DecliningEPS CAGR
-128.66%
Industry Style: Growth, Innovation, High Beta
DecliningFCF CAGR
-66.66%
Industry Style: Growth, Innovation, High Beta
Declining