Aeroports de Paris (ARRPY) AI Stock Analysis

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Aeroports de Paris

(OTC:ARRPY)

Rating:67Neutral

Price Target:

$13.50

▲(2.66%Upside)

Aeroports de Paris benefits from strong financial recovery and record revenue growth, as highlighted in the earnings call. However, high valuation metrics and technical indicators suggest cautious optimism. The company's high debt levels and inconsistent cash flow growth present risks that should be monitored.

Aeroports de Paris (ARRPY) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$13.03B

Dividend Yield0.11%

Average Volume (3M)0.00

Price to Earnings (P/E)35.1

Beta (1Y)0.62

Revenue Growth12.13%

EPS Growth-45.82%

CountryUS

Employees29,330

SectorIndustrials

Sector Strength93

IndustryAirlines, Airports & Air Services

Share Statistics

EPS (TTM)>-0.01

Shares Outstanding989,610,000

10 Day Avg. Volume0

30 Day Avg. Volume0

Financial Highlights & Ratios

PEG Ratio-0.52

Price to Book (P/B)2.21

Price to Sales (P/S)0.00

P/FCF Ratio24.20

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$14.50

Price Target Upside10.27% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering0

Aeroports de Paris Business Overview & Revenue Model

Company DescriptionAeroports de Paris (ARRPY), also known as Groupe ADP, is a prominent French company specializing in the ownership and management of airports. It operates several major airports in the Paris region, including Charles de Gaulle Airport, Orly Airport, and Le Bourget Airport. The company offers a comprehensive range of services spanning airport operations, passenger services, and commercial activities, positioning itself as a leading player in the global aviation sector.

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:Feb 19, 2025

(Q4-2024)

% Change Since: 9.22%|

Next Earnings Date:Jul 30, 2025

Earnings Call Sentiment Neutral

Groupe ADP achieved record revenue and EBITDA, with strong International traffic growth and retail performance. However, challenges included a decline in net results due to accounting charges, slow Paris traffic growth, and increased expenses from a new Infrastructure Tax.

Q4-2024 Updates

Positive Updates

Record Revenue and EBITDA

Revenue reached an all-time high of €6.2 billion, up 12% versus last year, and EBITDA reached a record level, surpassing targets.

International Traffic Growth

Groupe traffic exceeded 2019 levels, with strong momentum in International traffic, particularly with increases in North America, Africa, and Asia.

Strong Retail Performance

Retail performance was strong, with Extime spend per pax hitting a new record above €32, and Terminal 1 International's spend approaching €90 per passenger.

Sustainability Achievements

Delhi Airport reached level 5 of the Airport Carbon Accreditation program, and Paris platforms' decarbonization trajectory was validated by the SBTi, with ADP SA included in the CDP's A list for climate matters.

Negative Updates

Net Result Decline

The reported net result was down due to a negative non-cash accounting charge from the operation at GMR level.

Challenges in Paris Traffic Growth

Paris traffic was up only 3.7%, with domestic traffic experiencing an underlying decline and disruptions linked to ATC systems experimentations.

Impact of Infrastructure Tax

OpEx increased by 17% due to the inclusion of the new Infrastructure Tax in France, which impacted EBITDA growth in Paris activities.

Company Guidance

In the recent call, Groupe ADP provided comprehensive guidance on its financial and operational performance for 2024 and strategic outlook for the coming years. The company reported robust financial results, with revenue reaching €6.2 billion, up 12% from the previous year, and EBITDA hitting a record €2.1 billion, despite a one-off negative non-cash accounting charge impacting the net result. Traffic levels surpassed 2019 figures, with Paris airports showing strong momentum, particularly in international segments. The company plans to propose a dividend of €3 per share. Groupe ADP aims to enhance its global footprint by expanding the Extime model in Paris and internationally, while focusing on sustainability as part of its 2025 Pioneer Strategic roadmap. Additionally, they outlined a capex guidance of up to €1.4 billion for 2025, reflecting ongoing investments in mandatory and regulatory infrastructure upgrades. The group also reiterated its commitment to achieving a decarbonization trajectory, with significant achievements like Delhi Airport reaching level 5 of the Airport Carbon Accreditation program.

Aeroports de Paris Financial Statement Overview

Summary

Aeroports de Paris has demonstrated strong revenue growth and operational recovery post-pandemic. However, profitability is hindered by volatile net income figures, and the high debt-to-equity ratio poses a risk to financial stability. Cash flow remains stable, though inconsistent free cash flow growth is a concern.

Income Statement

Positive

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.

Balance Sheet

Positive

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.

Cash Flow

Positive

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.

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	873.00M	-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	2.63B	2.38B	3.46B
Total Debt	10.14B	9.82B	9.84B	10.17B	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

Technical Analysis Sentiment

Positive

Last Price13.15

Price Trends

50DMA

12.70

Positive

100DMA

11.94

Positive

200DMA

11.67

Positive

Market Momentum

MACD

0.13

Negative

RSI

66.99

Neutral

STOCH

99.87

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 13.15 is above the 20-day moving average (MA) of 12.62, above the 50-day MA of 12.70, and above the 200-day MA of 11.67, indicating a bullish trend. The MACD of 0.13 indicates Negative momentum. The RSI at 66.99 is Neutral, neither overbought nor oversold. The STOCH value of 99.87 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

Overall Rating

UnderperformOutperform

Sector (65)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OMAB	78 Outperform	$5.20B	19.26	44.27%	0.04%	-10.13%	-6.82%
PAC	73 Outperform	$11.37B	24.24	47.69%	0.02%	7.45%	-13.53%
ASR	73 Outperform	$9.17B	14.44	28.86%	0.03%	5.67%	-9.58%
CAAP	68 Neutral	$3.32B	22.82	11.32%	―	6.45%	-64.13%
ARRPY	67 Neutral	$13.03B	35.09	7.87%	0.11%	12.13%	-45.82%
Sector *	65 Neutral	$11.16B	15.86	5.39%	1.92%	3.11%	-24.90%

* Industrials Sector Average

Performance Comparison

ARRPY

Aeroports de Paris

13.15

0.25

1.94%

OMAB

Grupo Aeroportuario Del Centro

107.49

43.74

68.61%

PAC

Grupo Aeroportuario del Pacifico

223.93

75.34

50.70%

ASR

Grupo Aeroportuario del Sureste

303.55

26.34

9.50%

CAAP

Corporacion America Airports SA

20.33

4.06

24.95%

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.Date of analysis: Jun 26, 2025