Sabre Corporation — Earnings Quality Grade F
SABR · Technology
Major red flags
Screening Summary
Management Signals
Source: SEC EDGAR 8-K Item 5.02, with exhibit links when available
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 41 days, change +3 days YoY
AR growth 8.8% vs revenue growth 1.0%
Revenue 1.0%, CFFO -284.9%. Cash follows revenue
Expense Quality
No material inventory
CapEx growth 4.2% vs revenue 1.0%. Normal
SG&A/Gross Profit = 65.4%. Normal
Gross margin 30.8%, change +1.0pp. Stable
Cash Flow Quality
CFFO < Net Income for 3 consecutive years
Small-cap context: Small-cap CFFO/NI often diverges from working-capital swings, not necessarily manipulation.
FCF is negative ($-0.2B)
Accruals ratio = 14.6%. Exceeds 10%
Cash $0.8B covers only 18% of debt $4.4B
Balance Sheet Health
Goodwill+Intangibles $2.7B = -254% of equity. Manageable
Debt/EBITDA = 14.0x (>4x). Interest coverage = 0.7x (<2x). Financial stress
Other assets -77.2% vs revenue 1.0%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions negative for 3 years
Small-cap context: A single acquisition on a small balance sheet can trip serial-acquirer logic.
Goodwill+Intangibles change -1% YoY. Normal
Manipulation Score
M-Score = -1.72 (> -1.78). LIKELY MANIPULATOR
Small-cap context: Beneish M-Score was calibrated on large-caps; small-cap DSO/inventory volatility mechanically inflates it.
Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25