Investment Thesis
Sabre faces acute financial distress with negative stockholders' equity of -$1.0B, negative free cash flow of -$101.8M, and a debt burden of $4.3B that far exceeds asset value. The company cannot service its debt from operations (interest coverage 0.9x) and is systematically depleting cash reserves, creating an unsustainable solvency position despite positive operating income.
Strengths
- Positive operating income of $115.9M with 15.2% operating margin indicating core operations remain functional
- Modest revenue growth of 1% YoY shows business has not entirely collapsed
- Cash reserves of $643.6M provide near-term liquidity buffer
Risks
- Negative stockholders' equity of -$1.0B indicates technical insolvency from a capital structure perspective
- Negative free cash flow of -$101.8M is unsustainable; at current burn rate, cash reserves would deplete in ~6 years
- Interest coverage ratio of 0.9x means operating income cannot cover interest expenses, indicating inability to service debt
- Current ratio of 0.93x signals near-term liquidity stress with liabilities exceeding current assets
- Debt-to-assets ratio of 100% (4.3B debt on 4.3B assets) creates extreme financial leverage
Key Metrics to Watch
- Operating cash flow trend - must turn positive for fundamental viability
- Debt restructuring announcements - necessary for long-term survival
- Interest coverage improvement - critical threshold is crossing 1.0x
- Cash depletion rate and path to positive free cash flow
Financial Metrics
Revenue
760.3M
Net Income
8.1M
EPS (Diluted)
$0.02
Free Cash Flow
-101.8M
Total Assets
4.3B
Cash
643.6M
Profitability Ratios
Gross Margin
N/A
Operating Margin
15.2%
Net Margin
1.1%
ROE
N/A
ROA
0.2%
FCF Margin
-13.4%
Balance Sheet & Liquidity
Current Ratio
0.93x
Quick Ratio
0.93x
Debt/Equity
N/A
Debt/Assets
0.0%
Interest Coverage
0.93x
Long-term Debt
4.3B
Disclaimer: This analysis is generated by AI based on publicly available SEC EDGAR filings.
It does not include stock price data and should not be considered financial advice.
All fundamental data is sourced from SEC public domain filings.
Always conduct your own research before making investment decisions.
Data Source: SEC EDGAR |
Analysis Date: 2026-05-09T13:00:08.622538 |
Data as of: 2026-03-31 |
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