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Sabre Corporation (NASDAQ:SABR) Has Attractive Fundamentals

Building up an investment case requires looking at a stock holistically. Today I’ve chosen to put the spotlight on Sabre Corporation (NASDAQ:SABR) due to its excellent fundamentals in more than one area. SABR is a company with great financial health as well as a an impressive track record of performance. Below, I’ve touched on some key aspects you should know on a high level. If you’re interested in understanding beyond my high-level commentary, take a look at the report on Sabre here.

Solid track record with adequate balance sheet

SABR delivered a bottom-line expansion of 72% in the prior year, with its most recent earnings level surpassing its average level over the last five years. This strong performance generated a robust double-digit return on equity of 36%, which is an optimistic signal for the future. SABR is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This implies that SABR manages its cash and cost levels well, which is a key determinant of the company’s health. SABR seems to have put its debt to good use, generating operating cash levels of 0.22x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows.

NasdaqGS:SABR Income Statement Export December 5th 18
NasdaqGS:SABR Income Statement Export December 5th 18

Next Steps:

For Sabre, there are three key aspects you should further examine:

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  1. Future Outlook: What are well-informed industry analysts predicting for SABR’s future growth? Take a look at our free research report of analyst consensus for SABR’s outlook.

  2. Valuation: What is SABR worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether SABR is currently mispriced by the market.

  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of SABR? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.