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Corporacion America Airports SA (CAAP)
NYSE:CAAP
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Corporacion America Airports SA
(NYSE:CAAP)
Rating:77Outperform
Price Target:
$24.00
▲(17.19%Upside)
Corporacion America Airports SA (CAAP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.31B
Dividend YieldN/A
Average Volume (3M)145.78K
Price to Earnings (P/E)23.0
Beta (1Y)0.66
Revenue Growth6.45%
EPS Growth-64.13%
CountryUS
Employees6,100
SectorIndustrials
Sector Strength92
IndustryAirlines, Airports & Air Services
Share Statistics
EPS (TTM)0.25
Shares Outstanding163,086,820
10 Day Avg. Volume137,991
30 Day Avg. Volume145,784
Financial Highlights & Ratios
PEG Ratio-0.53
Price to Book (P/B)2.75
Price to Sales (P/S)0.00
P/FCF Ratio9.05
Enterprise Value/Market Cap1.24
Enterprise Value/Revenue0.60
Enterprise Value/Gross Profit7.02
Enterprise Value/Ebitda1.45
Forecast
1Y Price Target
$22.65Price Target Upside10.60% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
Corporacion America Airports SA Business Overview & Revenue Model
Company DescriptionCorporacion America Airports SA (CAAP) is a leading global airport operator that manages and operates a diverse portfolio of airport concessions across Latin America and Europe. The company is involved in the development, management, and operation of a number of airports, offering a range of services that include aeronautical and non-aeronautical activities. CAAP's core services revolve around providing infrastructure and facilities for airlines and passengers, ensuring efficient airport operations, and enhancing customer experience.
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 Earnings Call Summary
Earnings Call Date:May 22, 2025
(Q1-2025)
| % Change Since: -5.80%|
Next Earnings Date:Aug 14, 2025
Earnings Call Sentiment Positive
The earnings call presented a strong performance in terms of passenger traffic growth, financial stability, and strategic expansion. However, challenges in cost management and currency devaluation impacts were notable concerns. Recognition through awards and strategic initiatives in new markets add to the positive outlook.Q1-2025 Updates
Positive Updates
Strong Passenger Traffic Growth
Total passenger traffic grew by over 7% year-over-year, or more than 9% when excluding the discontinued Natal concession. Notably, international traffic increased nearly 13%, led by Argentina and Italy.
Record Traffic Levels in Argentina and Uruguay
Argentina reached record traffic levels in January, and Carrasco airport in Uruguay also reached a record high in the same month.
Revenue and Adjusted EBITDA Growth
Revenues rose 6% year-over-year, and nearly 12% on an ex-IAS29 basis. Adjusted EBITDA was $156 million, up 4% when excluding IAS29.
Solid Financial Position
The company maintained a solid liquidity position with $524 million in liquidity and a stable net leverage ratio of 1.1 times.
Positive Developments in Cargo
Cargo volumes were up 9% year-over-year, with strong performance in Uruguay and Argentina. A new cargo business model in Argentina is expected to contribute positively to revenue growth.
Expansion and Strategic Growth
The company is actively pursuing opportunities and making progress across multiple geographies, with proposals submitted in Montenegro and Angola.
Recognition and Awards
Several airports received prestigious awards, with Carrasco International Airport in Uruguay named the best airport in Latin America and the Caribbean in its category.
Negative Updates
Challenges in Cost Management
Total costs and expenses excluding IFRIC12 were up 17.7% year-over-year, driven by inflationary pressures in Argentina and higher maintenance costs in Italy.
Currency Devaluation Impact
Local currency devaluations in Brazil and Italy impacted reported revenues in US dollars.
Concession Agreement Uncertainty
Ongoing negotiations with the Argentine government regarding the revision of the economic equilibrium of the AA2000 concession agreement may face delays due to changes in government and regulatory bodies.
Company Guidance
During the Corporacion America Airports First Quarter 2025 Conference Call, significant guidance was provided, emphasizing a strong start to the year. Total passenger traffic increased by over 7% year-over-year, or more than 9% excluding the discontinued Natal concession. International traffic grew nearly 13%, and domestic traffic rose by 4%, or close to 8% excluding Natal. Revenues increased by 6% year-over-year and nearly 12% on an ex-IAS29 basis, despite currency devaluations in Brazil and Italy impacting reported revenues in US dollars. Revenue per passenger remained stable at $20.5 or increased by 3.9% excluding IAS29. Adjusted EBITDA was $156 million, up 4% when excluding IAS29, with a margin of 38.2%. The company maintained a strong financial position with low leverage, enabling strategic growth. They are actively pursuing expansion opportunities and made progress on several projects across different geographies.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
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.78
Positive
Balance Sheet
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.72
Positive
Cash Flow
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.80
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| 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 |
| 920.66M | 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 | |||
| 524.67M | 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
Positive
20.48
Price Trends
19.55
Positive
19.22
Positive
18.64
Positive
Market Momentum
0.17
Positive
50.08
Neutral
29.89
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CAAP, the sentiment is Positive. The current price of 20.48 is below the 20-day moving average (MA) of 21.11, above the 50-day MA of 19.55, and above the 200-day MA of 18.64, indicating a neutral trend. The MACD of 0.17 indicates Positive momentum. The RSI at 50.08 is Neutral, neither overbought nor oversold. The STOCH value of 29.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CAAP.
Corporacion America Airports SA Peers Comparison
Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $4.31B | 7.12 | 26.07% | 5.96% | -1.06% | 5.86% | |
80 Outperform | $9.71B | 13.24 | 25.76% | 6.83% | 9.99% | 17.81% | |
77 Outperform | $3.31B | 22.99 | 11.32% | ― | 6.45% | -64.13% | |
77 Outperform | $4.97B | 18.49 | 44.27% | 3.81% | -10.13% | -6.82% | |
76 Outperform | $4.18B | 11.82 | 15.66% | ― | 20.53% | 217.24% | |
73 Outperform | $11.89B | 25.59 | 36.66% | 4.60% | -2.56% | -14.94% | |
66 Neutral | $4.50B | 12.28 | 5.32% | 248.52% | 4.13% | -12.36% |
* Industrials Sector Average
Performance Comparison
CAAP
Corporacion America Airports SA
20.48
3.04
17.43%
CPA
Copa Holdings
108.00
19.83
22.49%
OMAB
Grupo Aeroportuario Del Centro
104.33
34.76
49.96%
PAC
Grupo Aeroportuario del Pacifico
238.95
83.27
53.49%
ASR
Grupo Aeroportuario del Sureste
323.90
37.02
12.90%
SKYW
SkyWest
103.26
27.24
35.83%
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.