Corporacion America Airports SA (CAAP) AI Stock Analysis

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Corporacion America Airports SA

(NYSE:CAAP)

72Outperform

Corporacion America Airports SA demonstrates strong financial health with solid revenue growth and profitability. The valuation is attractive, supported by a reasonable P/E ratio. However, technical analysis suggests cautious optimism with potential short-term volatility. The earnings call highlights both opportunities in international markets and challenges in Argentina, impacting the overall outlook.

Corporacion America Airports SA (CAAP) vs. S&P 500 (SPY)

Market Cap

$2.81B

Dividend YieldN/A

Average Volume (3M)395.22K

Price to Earnings (P/E)10.3

Beta (1Y)0.74

Revenue Growth8.85%

EPS Growth-8.41%

CountryUS

Employees6,100

SectorIndustrials

Sector Strength63

IndustryAirlines, Airports & Air Services

Share Statistics

EPS (TTM)1.59

Shares Outstanding161,090,380

10 Day Avg. Volume155,660

30 Day Avg. Volume395,222

Financial Highlights & Ratios

PEG Ratio<0.00001

Price to Book (P/B)N/A

Price to Sales (P/S)2.11

Price to Cash Flow (P/CF)N/A

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$23.33

Price Target Upside43.13% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering3

Corporacion America Airports SA Business Overview & Revenue Model

Company DescriptionCorporación América Airports S.A., through its subsidiaries, acquires, develops, and operates airport concessions. It operates 53 airports in Latin America, Europe, and Eurasia. The company was formerly known as A.C.I. Airports International S.à r.l. The company was founded in 1998 and is headquartered in Luxembourg City, Luxembourg. Corporación América Airports S.A. is a subsidiary of A.C.I. Airports S.à r.l.

How the Company Makes MoneyCorporacion America Airports SA generates revenue primarily through aeronautical services, which include the fees charged to airlines for the use of airport facilities, such as landing and parking fees, and passenger service charges. Additionally, the company earns from non-aeronautical services, which encompass commercial activities like retail concessions, parking facilities, and leasing of space for shops and restaurants within the airports. CAAP also benefits from duty-free sales and advertising within its premises. Strategic partnerships with airlines and commercial vendors, as well as its focus on enhancing passenger traffic and improving service offerings, significantly contribute to its earnings.

Corporacion America Airports SA Financial Statement Overview

Summary

Corporacion America Airports SA exhibits strong financial performance with impressive growth in revenue and profitability. The balance sheet shows improved equity and moderate leverage, while cash flow generation is robust. Despite some historical volatility and high debt levels, the company is well-positioned to capitalize on future opportunities in the transportation industry.

Income Statement

Positive

Corporacion America Airports SA has demonstrated strong revenue growth, with Total Revenue increasing from $1,400 million to $1,843 million, marking a 31.2% growth rate. The company has also improved its profitability, with a Gross Profit Margin of 33.0% and a Net Profit Margin of 15.3% in the latest period. EBIT and EBITDA margins are robust at 24.3% and 35.3%, respectively, indicating efficient cost management and operational effectiveness. However, the company has faced volatility in past years, which could pose risks if market conditions deteriorate.

Balance Sheet

Positive

The company's current Debt-to-Equity Ratio of 0.85 shows a moderate level of leverage. There has been a significant increase in Stockholders' Equity to $1,369 million, which has strengthened the Equity Ratio to 32.8%. The Return on Equity stands at a healthy 20.6%, reflecting effective utilization of equity capital. However, the overall debt level remains relatively high, which could be a concern if interest rates rise or revenue growth slows.

Cash Flow

Positive

Corporacion America Airports SA has shown excellent cash flow performance, with Operating Cash Flow increasing to $405 million. The Free Cash Flow has also grown to $393 million, resulting in a solid Free Cash Flow to Net Income Ratio of 1.39. The Free Cash Flow Growth Rate is strong, indicating improved cash generation capabilities. These factors highlight the company's ability to generate cash internally, supporting future growth and debt repayment.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
1.84B	1.40B	1.38B	706.90M	607.36M
	Gross Profit
608.83M	483.42M	415.60M	84.60M	-46.23M
	EBIT
447.25M	540.64M	240.07M	-78.69M	-71.89M
	EBITDA
650.26M	445.09M	494.23M	199.27M	-67.82M
	Net Income Common Stockholders
282.67M	239.51M	168.17M	-159.78M	-361.89M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
525.90M	457.87M	451.96M	451.08M	354.93M
	Total Assets
4.18B	3.54B	3.84B	3.62B	3.41B
	Total Debt
1.17B	1.35B	1.47B	1.45B	1.36B
	Net Debt
728.94M	977.37M	1.09B	1.08B	1.08B
	Total Liabilities
2.66B	2.74B	2.97B	2.85B	2.60B
	Stockholders Equity
1.37B	724.98M	716.10M	469.73M	489.41M
Cash Flow		Free Cash Flow
393.08M	345.53M	292.81M	99.44M	-8.69M
	Operating Cash Flow
405.30M	356.42M	302.63M	107.96M	838.00K
	Investing Cash Flow
-32.49M	-66.40M	-5.31M	7.13M	1.62M
	Financing Cash Flow
-271.19M	-201.63M	-234.29M	-3.67M	90.54M

Corporacion America Airports SA Technical Analysis

Technical Analysis Sentiment

Negative

Last Price16.30

Price Trends

50DMA

18.68

Negative

100DMA

18.95

Negative

200DMA

17.92

Negative

Market Momentum

MACD

-0.03

Negative

RSI

51.98

Neutral

STOCH

51.64

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CAAP, the sentiment is Negative. The current price of 16.3 is below the 20-day moving average (MA) of 18.28, below the 50-day MA of 18.68, and below the 200-day MA of 17.92, indicating a bearish trend. The MACD of -0.03 indicates Negative momentum. The RSI at 51.98 is Neutral, neither overbought nor oversold. The STOCH value of 51.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CAAP.

Corporacion America Airports SA Peers Comparison

Overall Rating

UnderperformOutperform

Sector (62)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OMAB	82 Outperform	$3.70B	13.79	50.41%	5.42%	0.83%	-4.88%
CPA	80 Outperform	$3.62B	5.98	27.07%	7.40%	-0.48%	13.87%
ASR	76 Outperform	$8.06B	11.03	28.24%	2.13%	17.41%	28.94%
CAAP	72 Outperform	$2.81B	10.28	24.39%	―	8.85%	-8.41%
PAC	70 Outperform	$9.15B	19.37	42.32%	3.95%	-2.03%	-11.39%
SKYW	63 Neutral	$3.26B	10.32	14.28%	―	20.18%	794.72%
Sector *	62 Neutral	$7.24B	12.39	3.08%	3.39%	3.63%	-14.35%

* Industrials Sector Average

Performance Comparison

CAAP

Corporacion America Airports SA

16.30

-0.80

-4.68%

CPA

Copa Holdings

83.21

-14.02

-14.42%

OMAB

Grupo Aeroportuario Del Centro

73.27

-6.16

-7.76%

PAC

Grupo Aeroportuario del Pacifico

178.01

17.94

11.21%

ASR

Grupo Aeroportuario del Sureste

259.64

-56.62

-17.90%

SKYW

SkyWest

79.64

10.16

14.62%

Corporacion America Airports SA Earnings Call Summary

Earnings Call Date: Mar 19, 2025 | % Change Since: -15.46% | Next Earnings Date: May 21, 2025

Earnings Call Sentiment Neutral

The earnings call presented a mixed sentiment with strong international passenger growth and robust financial positioning across multiple markets, such as Italy and Uruguay. However, challenges persisted with declining domestic traffic in Argentina and impacts from the Argentine peso devaluation, leading to reduced revenues and EBITDA. The company's strategic initiatives and expansions provide positive outlooks, but the negative trends in Argentina weigh on the overall performance.

Highlights

Record Passenger Traffic

Total passengers reached record highs in December 2024, with approximately 20 million traveling in the fourth quarter alone. International traffic in Argentina rose by 11.3% year-over-year, supported by a recovery in outbound tourism.

Strong Performance in Italy and Uruguay

In Italy, passenger traffic rose by 11%, with growth in both international and domestic travel. Uruguay saw an increase in passenger traffic by mid-single-digits, supported by new and resumed routes.

Robust Financial Position

The company maintained a strong cash flow and a robust financial position, with a net leverage ratio standing at 1.1 times at year-end, reflecting debt reductions and early redemption in Argentina and Armenia.

Cargo Volume Growth

Growth in cargo volumes accelerated to 16% year-over-year in the fourth quarter, with positive contributions from all countries of operations.

Strategic Initiatives and Expansions

The company is advancing on key projects to enhance passenger experience and boost commercial revenue growth, including expansions in Argentina and Brazil, and new facilities in Uruguay.

Lowlights

Decline in Passenger Traffic

Overall, total passenger traffic declined by 1.2% year-on-year. Domestic traffic in Argentina showed a sequential improvement but remained 7% lower year-over-year.

Impact of Argentine Peso Devaluation

Fourth-quarter year-over-year comparisons were affected by the sharp devaluation of the Argentine peso in late December 2023, impacting revenues and adjusted EBITDA.

Reduced Duty-Free and Cargo Revenues

Adjusted EBITDA for the quarter declined by 7%, pressured by reduced duty-free sales and lower cargo revenues in Argentina.

Challenges in Domestic Argentina Market

Argentina's performance remained soft, particularly in domestic traffic, due to the absence of the Previaje Government Incentive Program, which had bolstered local tourism in 2023.

Company Guidance

During the Corporacion America Airports fourth quarter and year-end 2024 conference call, key guidance metrics were highlighted. Total passenger traffic declined by 1.2% year-over-year, but increased by 1.5% when excluding the Natal Airport, which was discontinued in February 2024. Argentina saw a 1.2% decline in passenger traffic, but international traffic rose by 11.3%, supported by the recovery in outbound tourism. Total revenues, excluding IFRIC12, were down by 0.6% year-over-year, with revenue per passenger improving slightly to $19.3. Adjusted EBITDA for the quarter declined by 7%, impacted by weaker domestic traffic in Argentina and lower cargo revenues. The company maintained a strong cash flow and robust financial position, with a net leverage ratio of 1.1 times. Looking forward to 2025, the company expressed cautious optimism, expecting a recovery in Argentina's domestic traffic and continued strong performance in other key markets like Italy, Uruguay, and Brazil.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.