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Aeroports de Paris (ARRPY)
OTHER OTC:ARRPY
US Market

Aeroports de Paris (ARRPY) AI Stock Analysis

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Aeroports de Paris

(OTC:ARRPY)

Rating:67Neutral
Price Target:
$13.50
▲(6.72%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)

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 several key streams, primarily from aviation and non-aviation activities. Aviation revenue is derived from fees charged to airlines for the use of airport facilities, including landing and parking fees, as well as passenger service charges. Non-aviation revenue comes from retail operations, real estate, and other services such as car parking and logistics. The company also benefits from commercial partnerships and investments in international airports, expanding its revenue base. Strategic collaborations with airlines and retail operators enhance its service offerings and contribute to its financial performance.

Aeroports de Paris Earnings Call Summary

Earnings Call Date:Feb 19, 2025
(Q4-2024)
|
% Change Since: 5.07%|
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 shows strong revenue growth and operational recovery post-pandemic. However, concerns remain regarding profitability and leverage, along with challenges in maintaining consistent free cash flow growth.
Income Statement
75
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
68
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
70
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue6.16B5.50B4.69B2.78B2.14B
Gross Profit3.08B2.40B1.69B520.00M96.00M
EBITDA1.87B2.09B1.83B873.00M-615.00M
Net Income342.00M631.00M516.00M-248.00M-1.17B
Balance Sheet
Total Assets20.18B19.66B18.84B18.36B18.57B
Cash, Cash Equivalents and Short-Term Investments2.10B2.44B2.63B2.38B3.46B
Total Debt10.14B9.82B9.84B10.17B10.79B
Total Liabilities14.67B14.36B13.93B14.13B14.31B
Stockholders Equity4.42B4.36B4.03B3.52B3.65B
Cash Flow
Free Cash Flow435.00M578.00M645.00M24.00M-730.00M
Operating Cash Flow1.52B1.59B1.34B551.00M118.00M
Investing Cash Flow-1.46B-1.15B-726.00M-1.09B-2.12B
Financing Cash Flow-458.00M-721.00M-367.00M-536.00M3.49B

Aeroports de Paris Technical Analysis

Technical Analysis Sentiment
Positive
Last Price12.65
Price Trends
50DMA
12.63
Negative
100DMA
11.71
Positive
200DMA
11.67
Positive
Market Momentum
MACD
-0.02
Negative
RSI
49.42
Neutral
STOCH
71.43
Neutral
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 12.65 is above the 20-day moving average (MA) of 12.50, above the 50-day MA of 12.63, and above the 200-day MA of 11.67, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 49.42 is Neutral, neither overbought nor oversold. The STOCH value of 71.43 is Neutral, 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
80
Outperform
$5.33B19.7544.27%4.34%-10.13%-6.82%
ASASR
79
Outperform
$9.51B12.9225.76%7.72%9.99%17.81%
72
Outperform
$3.41B23.4511.32%6.45%-64.13%
PAPAC
70
Outperform
$11.82B25.2936.66%3.71%-2.56%-14.94%
67
Neutral
$12.37B33.757.87%3.10%12.13%-45.82%
65
Neutral
$10.75B15.695.29%1.89%3.09%-27.41%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ARRPY
Aeroports de Paris
12.50
-0.02
-0.16%
OMAB
Grupo Aeroportuario Del Centro
110.21
46.43
72.80%
PAC
Grupo Aeroportuario del Pacifico
230.45
84.15
57.52%
ASR
Grupo Aeroportuario del Sureste
316.09
34.60
12.29%
CAAP
Corporacion America Airports SA
20.59
3.68
21.76%
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