Latest news with #AmadeusFiRe
Yahoo
18-05-2025
- Business
- Yahoo
Here's Why We're Wary Of Buying Amadeus FiRe's (ETR:AAD) For Its Upcoming Dividend
Amadeus FiRe AG (ETR:AAD) is about to trade ex-dividend in the next four days. Typically, the ex-dividend date is two business days before the record date, which is the date on which a company determines the shareholders eligible to receive a dividend. The ex-dividend date is important because any transaction on a stock needs to have been settled before the record date in order to be eligible for a dividend. In other words, investors can purchase Amadeus FiRe's shares before the 23rd of May in order to be eligible for the dividend, which will be paid on the 27th of May. The company's next dividend payment will be €4.03 per share, on the back of last year when the company paid a total of €4.03 to shareholders. Based on the last year's worth of payments, Amadeus FiRe has a trailing yield of 5.0% on the current stock price of €80.00. If you buy this business for its dividend, you should have an idea of whether Amadeus FiRe's dividend is reliable and sustainable. We need to see whether the dividend is covered by earnings and if it's growing. We've discovered 2 warning signs about Amadeus FiRe. View them for free. Dividends are usually paid out of company profits, so if a company pays out more than it earned then its dividend is usually at greater risk of being cut. It paid out 89% of its earnings as dividends last year, which is not unreasonable, but limits reinvestment in the business and leaves the dividend vulnerable to a business downturn. We'd be worried about the risk of a drop in earnings. A useful secondary check can be to evaluate whether Amadeus FiRe generated enough free cash flow to afford its dividend. Over the last year, it paid out more than three-quarters (76%) of its free cash flow generated, which is fairly high and may be starting to limit reinvestment in the business. It's encouraging to see that the dividend is covered by both profit and cash flow. This generally suggests the dividend is sustainable, as long as earnings don't drop precipitously. View our latest analysis for Amadeus FiRe Click here to see the company's payout ratio, plus analyst estimates of its future dividends. Companies that aren't growing their earnings can still be valuable, but it is even more important to assess the sustainability of the dividend if it looks like the company will struggle to grow. If business enters a downturn and the dividend is cut, the company could see its value fall precipitously. With that in mind, we're not enthused to see that Amadeus FiRe's earnings per share have remained effectively flat over the past five years. Better than seeing them fall off a cliff, for sure, but the best dividend stocks grow their earnings meaningfully over the long run. Another key way to measure a company's dividend prospects is by measuring its historical rate of dividend growth. Amadeus FiRe has delivered 1.8% dividend growth per year on average over the past 10 years. Should investors buy Amadeus FiRe for the upcoming dividend? Amadeus FiRe has been unable to generate earnings growth, but at least its dividend looks sustainable, with its profit and cashflow payout ratios within reasonable limits. With the way things are shaping up from a dividend perspective, we'd be inclined to steer clear of Amadeus FiRe. With that being said, if you're still considering Amadeus FiRe as an investment, you'll find it beneficial to know what risks this stock is facing. To help with this, we've discovered 2 warning signs for Amadeus FiRe that you should be aware of before investing in their shares. If you're in the market for strong dividend payers, we recommend checking our selection of top dividend stocks. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
08-05-2025
- Business
- Yahoo
Amadeus FiRe First Quarter 2025 Earnings: EPS: €0.18 (vs €1.67 in 1Q 2024)
Amadeus FiRe (ETR:AAD) First Quarter 2025 Results Key Financial Results Revenue: €98.2m (down 14% from 1Q 2024). Net income: €982.0k (down 89% from 1Q 2024). Profit margin: 1.0% (down from 7.9% in 1Q 2024). The decrease in margin was driven by lower revenue. EPS: €0.18 (down from €1.67 in 1Q 2024). Our free stock report includes 2 warning signs investors should be aware of before investing in Amadeus FiRe. Read for free now. XTRA:AAD Earnings and Revenue Growth May 8th 2025 All figures shown in the chart above are for the trailing 12 month (TTM) period Amadeus FiRe Earnings Insights Looking ahead, revenue is forecast to grow 2.6% p.a. on average during the next 3 years, compared to a 5.7% growth forecast for the Professional Services industry in Europe. Performance of the market in Germany. The company's share price is broadly unchanged from a week ago. Risk Analysis It is worth noting though that we have found 2 warning signs for Amadeus FiRe that you need to take into consideration. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
30-03-2025
- Business
- Yahoo
Amadeus FiRe (ETR:AAD) Is Reducing Its Dividend To €4.30
The board of Amadeus FiRe AG (ETR:AAD) has announced that the dividend on 27th of May will be reduced by 14% from last year's €5.00 to €4.30. This means the annual payment is 6.5% of the current stock price, which is above the average for the industry. The end of cancer? These 15 emerging AI stocks are developing tech that will allow early identification of life changing diseases like cancer and Alzheimer's. We like to see robust dividend yields, but that doesn't matter if the payment isn't sustainable. Based on the last payment, Amadeus FiRe was quite comfortably earning enough to cover the dividend. This means that a large portion of its earnings are being retained to grow the business. Looking forward, earnings per share is forecast to rise by 3.4% over the next year. If the dividend continues along recent trends, we estimate the payout ratio will be 70%, which is in the range that makes us comfortable with the sustainability of the dividend. Check out our latest analysis for Amadeus FiRe The company's dividend history has been marked by instability, with at least one cut in the last 10 years. Since 2015, the dividend has gone from €2.83 total annually to €5.00. This works out to be a compound annual growth rate (CAGR) of approximately 5.9% a year over that time. We like to see dividends have grown at a reasonable rate, but with at least one substantial cut in the payments, we're not certain this dividend stock would be ideal for someone intending to live on the income. With a relatively unstable dividend, it's even more important to evaluate if earnings per share is growing, which could point to a growing dividend in the future. It's encouraging to see that Amadeus FiRe has been growing its earnings per share at 5.5% a year over the past five years. Earnings are on the uptrend, and it is only paying a small portion of those earnings to shareholders. Overall, while it's not great to see that the dividend has been cut, we think the company is now in a good position to make consistent payments going into the future. The dividend has been at reasonable levels historically, but that hasn't translated into a consistent payment. The payment isn't stellar, but it could make a decent addition to a dividend portfolio. It's important to note that companies having a consistent dividend policy will generate greater investor confidence than those having an erratic one. However, there are other things to consider for investors when analysing stock performance. Case in point: We've spotted 2 warning signs for Amadeus FiRe (of which 1 makes us a bit uncomfortable!) you should know about. Looking for more high-yielding dividend ideas? Try our collection of strong dividend payers. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
14-03-2025
- Business
- Yahoo
Amadeus FiRe AG (ETR:AAD) Shares Could Be 40% Below Their Intrinsic Value Estimate
Using the 2 Stage Free Cash Flow to Equity, Amadeus FiRe fair value estimate is €144 Amadeus FiRe is estimated to be 40% undervalued based on current share price of €85.60 Our fair value estimate is 23% higher than Amadeus FiRe's analyst price target of €117 Today we will run through one way of estimating the intrinsic value of Amadeus FiRe AG (ETR:AAD) by projecting its future cash flows and then discounting them to today's value. The Discounted Cash Flow (DCF) model is the tool we will apply to do this. Believe it or not, it's not too difficult to follow, as you'll see from our example! Companies can be valued in a lot of ways, so we would point out that a DCF is not perfect for every situation. For those who are keen learners of equity analysis, the Simply Wall St analysis model here may be something of interest to you. See our latest analysis for Amadeus FiRe We're using the 2-stage growth model, which simply means we take in account two stages of company's growth. In the initial period the company may have a higher growth rate and the second stage is usually assumed to have a stable growth rate. To begin with, we have to get estimates of the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. Generally we assume that a dollar today is more valuable than a dollar in the future, so we need to discount the sum of these future cash flows to arrive at a present value estimate: 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Levered FCF (€, Millions) €37.1m €41.4m €38.2m €36.3m €35.1m €34.4m €34.0m €33.9m €33.9m €34.0m Growth Rate Estimate Source Analyst x3 Analyst x3 Est @ -7.78% Est @ -5.12% Est @ -3.25% Est @ -1.95% Est @ -1.04% Est @ -0.40% Est @ 0.05% Est @ 0.36% Present Value (€, Millions) Discounted @ 5.2% €35.3 €37.4 €32.8 €29.6 €27.2 €25.4 €23.9 €22.6 €21.5 €20.5 ("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF) = €276m We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period. The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 5-year average of the 10-year government bond yield of 1.1%. We discount the terminal cash flows to today's value at a cost of equity of 5.2%. Terminal Value (TV)= FCF2034 × (1 + g) ÷ (r – g) = €34m× (1 + 1.1%) ÷ (5.2%– 1.1%) = €837m Present Value of Terminal Value (PVTV)= TV / (1 + r)10= €837m÷ ( 1 + 5.2%)10= €504m The total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value, which in this case is €780m. To get the intrinsic value per share, we divide this by the total number of shares outstanding. Relative to the current share price of €85.6, the company appears quite good value at a 40% discount to where the stock price trades currently. The assumptions in any calculation have a big impact on the valuation, so it is better to view this as a rough estimate, not precise down to the last cent. We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows. You don't have to agree with these inputs, I recommend redoing the calculations yourself and playing with them. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Amadeus FiRe as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 5.2%, which is based on a levered beta of 0.950. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. Strength Debt is not viewed as a risk. Dividends are covered by earnings and cash flows. Dividend is in the top 25% of dividend payers in the market. Weakness Earnings declined over the past year. Opportunity Trading below our estimate of fair value by more than 20%. Threat Annual earnings are forecast to decline for the next 3 years. Valuation is only one side of the coin in terms of building your investment thesis, and it ideally won't be the sole piece of analysis you scrutinize for a company. It's not possible to obtain a foolproof valuation with a DCF model. Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?" If a company grows at a different rate, or if its cost of equity or risk free rate changes sharply, the output can look very different. Why is the intrinsic value higher than the current share price? For Amadeus FiRe, we've compiled three essential aspects you should further research: Risks: As an example, we've found 2 warning signs for Amadeus FiRe (1 can't be ignored!) that you need to consider before investing here. Future Earnings: How does AAD's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart. Other Solid Businesses: Low debt, high returns on equity and good past performance are fundamental to a strong business. Why not explore our interactive list of stocks with solid business fundamentals to see if there are other companies you may not have considered! PS. The Simply Wall St app conducts a discounted cash flow valuation for every stock on the XTRA every day. If you want to find the calculation for other stocks just search here. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
