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Aeroports de Paris (ARRPY)
OTHER OTC:ARRPY
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Aeroports de Paris
(OTC:ARRPY)
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Rating:67Neutral
Price Target:
$14.50
▲(4.84% Upside)
Aeroports de Paris shows strong revenue growth and strategic partnerships, but faces challenges with high valuation and financial stability due to debt levels and inconsistent cash flow. Earnings call insights were positive but highlighted significant impacts on net income from external factors.
Aeroports de Paris (ARRPY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$13.59B
Dividend Yield2.54%
Average Volume (3M)0.00
Price to Earnings (P/E)135.1
Beta (1Y)0.65
Revenue Growth10.84%
EPS Growth-87.89%
CountryUS
Employees29,330
SectorIndustrials
Sector Strength72
IndustryAirlines, Airports & Air Services
Share Statistics
EPS (TTM)0.11
Shares Outstanding989,610,000
10 Day Avg. Volume0
30 Day Avg. Volume0
Financial Highlights & Ratios
PEG Ratio-0.70
Price to Book (P/B)2.51
Price to Sales (P/S)1.80
P/FCF Ratio25.44
Enterprise Value/Market Cap1.74
Enterprise Value/Revenue3.84
Enterprise Value/Gross Profit7.69
Enterprise Value/Ebitda12.63
Forecast
1Y Price Target
$14.50Price Target Upside4.84% Upside
Rating ConsensusHold
Number of Analyst Covering0
Aeroports de Paris Business Overview & Revenue Model
Company DescriptionAeroports de Paris SA owns and operates airports worldwide. The company operates through Aviation, Retail and Services, Real Estate, International and Airport Developments, and Other Activities segments. The Aviation segment offers security and airport safety services, such as security checkpoints, screening systems, aircraft rescue, and fire-fighting services. The Retail and Services segment provides retail activities comprising of bars, restaurants, banks, car rentals, and retails shops, as well as engages in leasing of space for terminals, advertising, restaurant, and car park services. This segment is also involved in production and supply of heat, drinking water, and access to the chilled distribution networks. The Real Estate segment engages in construction, commercialization, and lease management of office, logistic buildings, and freight terminals; and provides property leasing services for airport terminals, as well as rents serviced land. The International and Airport Developments segment designs and operates airport activities. The Other Activities segment offers telecom and cybersecurity services. It operates and manages approximately 28 airports worldwide. Aeroports de Paris SA was incorporated in 1945 and is based in Tremblay-en-France, France.
How the Company Makes MoneyAeroports de Paris generates revenue through a diverse portfolio of activities. The primary revenue streams include aviation fees, which encompass landing fees, passenger fees, and aircraft parking fees charged to airlines. The company also benefits significantly from non-aviation revenue sources such as retail concessions, property rentals, and advertising within the airport premises. Additionally, Groupe ADP engages in international activities, including airport management and development projects outside of France, further contributing to its income. Strategic partnerships and joint ventures with other global airport operators also play a crucial role in expanding its revenue base.
Aeroports de Paris Earnings Call Summary
Earnings Call Date:Jul 30, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Feb 18, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted strong revenue and EBITDA growth, increased traffic, and strategic partnerships, but these were offset by significant impacts on net income from FX variations and taxation. The retail sector experienced a slowdown in luxury sales, and there were notable increases in operational costs.Q2-2025 Updates
Positive Updates
Revenue and EBITDA Growth
Revenue rose by nearly 10% to EUR 3.2 billion, while recurring EBITDA increased by 8.7%, surpassing EUR 1 billion.
Traffic Increase
Traffic rose by 4.5% at Paris Aeroport and by 3.9% at TAV Airport, with total group traffic up by 5.1%.
Strategic Partnerships
The Connect France partnership with Air France aims to strengthen Paris Charles de Gaulle's position as a global hub.
Retail Performance
Sales per passenger reached EUR 31.9, up 7.7% compared to 2023, driven by performance in beauty, cosmetics, and food and beverage sectors.
Debt Management
Net debt to recurring EBITDA ratio improved to 4x, aided by targeted liability management actions.
Negative Updates
Net Income Decline
Net income stood at EUR 97 million, significantly impacted by noncash FX effects amounting to EUR 104 million and a temporary increase in taxation in France.
Impact on Dividend Policy
The Board decided to adjust the dividend policy with a floor of EUR 3 per share due to the impact of FX variations and taxation.
Retail Slowdown in Luxury
A slowdown in luxury retail was observed due to the appreciation of the Euro against the US and Chinese currencies.
Cost Increases
Operational expenses increased by 8.7%, driven by external services costs, staff costs, and property tax rebates.
Company Guidance
In the first half of 2025, Groupe ADP reported a nearly 10% increase in revenue, reaching EUR 3.2 billion, with recurring EBITDA surpassing EUR 1 billion, up 8.7%. The net debt to recurring EBITDA ratio improved to 4x. Traffic increased by 4.5% in Paris and 3.9% at TAV Airport, while Extime Paris spend per passenger rose by 7.7% compared to 2023. The company confirmed its 2025 outlook despite challenges from FX variations and increased taxation in France, as net income was impacted, landing at EUR 97 million. A new EUR 3 per share dividend floor was introduced, maintaining a 60% payout ratio. The next Economic Regulation Agreement proposal is set to be submitted by year-end, and the company continues to focus on long-term development strategies, including a partnership with Air France to strengthen Paris Charles de Gaulle's global hub status.Aeroports de Paris Financial Statement Overview
Summary
Aeroports de Paris shows strong revenue growth and operational recovery post-pandemic. However, profitability is unstable due to volatile net income, and the high debt-to-equity ratio poses a risk. Cash flow is stable but inconsistent in growth.Income Statement
Aeroports de Paris has shown a strong recovery with a significant revenue growth rate from 2020 to 2024. Gross profit margins have improved noticeably, reflecting better cost management and revenue growth. However, net profit margins are lower due to volatile net income figures, indicating some instability in profitability.75
Positive
Balance Sheet
The company's balance sheet indicates a high debt-to-equity ratio, which poses a risk. However, there is a positive trend in equity growth and the equity ratio, suggesting a strengthening financial position. Return on equity has shown improvement but remains an area to watch.68
Positive
Cash Flow
Operating cash flows have been strong, but free cash flow has fluctuated due to capital expenditures. The free cash flow to net income ratio indicates efficient cash conversion, though the free cash flow growth has not been consistent, suggesting potential challenges in sustaining cash flow stability.70
Positive
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 6.16B | 5.50B | 4.69B | 2.78B | 2.14B |
| Gross Profit | 3.08B | 2.40B | 1.69B | 520.00M | 96.00M |
| EBITDA | 1.87B | 2.09B | 1.83B | 701.00M | -615.00M |
| Net Income | 342.00M | 631.00M | 516.00M | -248.00M | -1.17B |
Balance Sheet | |||||
| Total Assets | 20.18B | 19.66B | 18.84B | 18.36B | 18.57B |
| Cash, Cash Equivalents and Short-Term Investments | 2.10B | 2.44B | 2.82B | 2.49B | 3.63B |
| Total Debt | 10.14B | 9.82B | 9.99B | 10.34B | 10.79B |
| Total Liabilities | 14.67B | 14.36B | 13.93B | 14.13B | 14.31B |
| Stockholders Equity | 4.42B | 4.36B | 4.03B | 3.52B | 3.65B |
Cash Flow | |||||
| Free Cash Flow | 435.00M | 578.00M | 645.00M | 24.00M | -730.00M |
| Operating Cash Flow | 1.52B | 1.59B | 1.34B | 551.00M | 118.00M |
| Investing Cash Flow | -1.46B | -1.15B | -726.00M | -1.09B | -2.12B |
| Financing Cash Flow | -458.00M | -721.00M | -367.00M | -536.00M | 3.49B |
Aeroports de Paris Technical Analysis
Positive
13.83
Price Trends
13.37
Positive
13.02
Positive
12.17
Positive
Market Momentum
0.11
Negative
64.68
Neutral
100.18
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ARRPY, the sentiment is Positive. The current price of 13.83 is above the 20-day moving average (MA) of 13.18, above the 50-day MA of 13.37, and above the 200-day MA of 12.17, indicating a bullish trend. The MACD of 0.11 indicates Negative momentum. The RSI at 64.68 is Neutral, neither overbought nor oversold. The STOCH value of 100.18 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ARRPY.
Aeroports de Paris Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $5.00B | 18.82 | 59.78% | 4.35% | -7.59% | -9.80% | |
78 Outperform | $9.13B | 14.46 | 28.86% | 10.77% | 5.67% | -9.58% | |
72 Outperform | $11.24B | 24.06 | 47.69% | 5.47% | 7.45% | -13.53% | |
70 Outperform | $2.90B | 20.42 | 10.46% | ― | 10.45% | -62.52% | |
67 Neutral | $13.59B | 135.13 | 2.15% | 2.54% | 10.84% | -87.89% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
48 Neutral | $14.25B | ― | -88.93% | ― | -90.97% | -120.32% |
* Industrials Sector Average
ARRPY
Aeroports de Paris
13.83
2.06
17.50%
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CAAP
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18.07
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0.50%
JOBY
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.