Fraport AG Frankfurt Airport Services Worldwide (FRA) AI Stock Analysis

• Market Cap: €7.27B
• Dividend Yield: N/A
• Average Volume (3M): 104.36K
• Price to Earnings (P/E): 15.9
• Beta (1Y): 0.67
• Revenue Growth: 0.11%
• EPS Growth: 2.58%
• Country: DE
• Employees: 19,431
• Sector: Industrials
• Sector Strength: 72
• Industry: Airlines, Airports & Air Services
• EPS (TTM): 3.28
• Shares Outstanding: 92,468,704
• 10 Day Avg. Volume: 78,733
• 30 Day Avg. Volume: 104,361
• PEG Ratio: 0.82
• Price to Book (P/B): 1.12
• Price to Sales (P/S): 1.22
• P/FCF Ratio: -62.27
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €80.05
• Price Target Upside: -0.99% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: €80.00 ▼(-1.05% Downside)

The overall stock score of 56 reflects the company's operational efficiency and reasonable valuation, offset by significant financial risks and bearish technical indicators. The high leverage and declining revenue growth are major concerns, while the stock's technical indicators suggest a bearish trend. The absence of dividend yield and lack of earnings call data further limit the stock's appeal.

Positive Factors

Strong operating margins

Sustained high gross and EBIT margins indicate operational efficiency and pricing power across airport services. These margins support resilience through traffic volatility, fund ongoing operations and investments, and provide a structural cushion to absorb cyclical downturns in air travel demand.

Diversified revenue streams

Revenue from aeronautical fees plus non-aeronautical sources (retail, parking, rentals, ground handling) diversifies cash flow drivers. This mix reduces reliance on any single segment, supports margin stability, and provides multiple levers to restore revenue if specific channels face downturns.

Leading hub market position

Operating a major global hub creates durable competitive advantages: strong catchment, steady international traffic, bargaining power with airlines and concessionaires, and network effects that attract carriers and retail partners, underpinning long-term revenue and partnership opportunities.

Negative Factors

High leverage

A debt-to-equity ratio this high materially constrains financial flexibility, raising refinancing and interest-rate risks. It limits the company’s ability to fund capital projects or absorb traffic shocks without increasing leverage or cutting investment, stressing long-term solvency under adverse scenarios.

Declining revenue growth

A substantive drop in revenue growth signals weakening demand or competitive pressure at the core airport business. Persisting revenue contraction undermines margins, reduces cash available for debt service and upgrades, and complicates long-term planning for capacity and customer experience investments.

Weak free cash flow generation

A severe decline in free cash flow and a low FCF-to-net-income ratio indicate limited internal funding for capex, debt reduction, or shareholder returns. Structural FCF weakness raises liquidity risk and may force higher leverage, asset sales, or deferred investment, harming long-term competitiveness.

Fraport AG Frankfurt Airport Services Worldwide Business Overview & Revenue Model

Company Description

Fraport AG owns and operates airports in Germany, rest of Europe, Asia, and the United States. The company primarily focuses on the operation of Frankfurt Main airport. The company operates through four segments: Aviation, Retail & Real Estate, Ground Handling, and International Activities & Services. The Aviation segment operates landside and airside infrastructure, which covers the area of airport charges. The Retail & Real Estate segment engages in retail activities, including marketing of real estate properties and land. This segment also manages buildings and facilities, and parking and retail areas; and rents advertising space. The Ground Handling segment provides loading, baggage, and passenger services through airmail and luggage transport to freight handling. The International Activities & Services segment acquires, operates, maintains, develops, and expands airports and infrastructure facilities. This segment also offers consulting services; integrated facility and corporate infrastructure management, airport expansion south, and information and telecommunication services. The company was founded in 1924 and is headquartered in Frankfurt am Main, Germany.

How the Company Makes Money

Fraport AG generates revenue primarily through airport charges, which include landing fees, terminal usage fees, and passenger service fees collected from airlines operating at Frankfurt Airport. Additionally, the company earns income from retail and duty-free concessions within the airport, as well as parking and rental services for commercial spaces. A significant portion of revenue also comes from ground handling services provided to airlines, which encompass baggage handling, aircraft servicing, and passenger assistance. Fraport AG has strategic partnerships with various airlines and stakeholders in the aviation sector, which further contribute to its earnings through shared services and collaborative projects.

Fraport AG Frankfurt Airport Services Worldwide Financial Statement Overview

Summary

Fraport AG shows operational efficiency with strong margins, but faces challenges with declining revenue growth and high leverage. The balance sheet reflects significant debt, which could impact financial flexibility. Cash flow issues, particularly the decline in free cash flow, highlight potential liquidity concerns. Overall, while the company is profitable, it must address revenue growth and manage its debt to ensure long-term stability.

Income Statement

The income statement shows a mixed performance. The TTM data indicates a decline in revenue growth by 9.1%, which is concerning. However, the company maintains healthy margins with a gross profit margin of 28.3% and an EBIT margin of 24.1%, indicating operational efficiency. The net profit margin of 10.7% is solid for the industry, though revenue contraction poses a risk to future profitability.

Balance Sheet

The balance sheet reveals high leverage with a debt-to-equity ratio of 2.35, which could pose financial risk if not managed carefully. The return on equity is moderate at 8.3%, reflecting decent profitability relative to shareholder equity. The equity ratio of 25.2% suggests a moderate level of financial stability, but the high debt levels are a concern.

Cash Flow

Cash flow analysis shows challenges, particularly with a significant decline in free cash flow growth by 198% in the TTM period. The operating cash flow to net income ratio is 0.60, indicating that operating cash flow is not fully covering net income, which could affect liquidity. The free cash flow to net income ratio of 0.08 suggests limited cash flow available for reinvestment or debt reduction.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.37B	4.43B	4.00B	3.19B	2.14B	1.68B
Gross Profit	1.24B	1.13B	1.03B	824.70M	266.20M	-643.30M
EBITDA	1.60B	1.56B	1.37B	1.01B	828.40M	-282.50M
Net Income	468.50M	450.60M	393.20M	132.40M	82.80M	-657.60M
Balance Sheet
Total Assets	20.40B	20.25B	18.89B	17.61B	16.24B	14.08B
Cash, Cash Equivalents and Short-Term Investments	3.41B	3.04B	3.16B	2.76B	2.78B	1.95B
Total Debt	12.10B	11.16B	11.93B	248.80M	238.50M	259.00M
Total Liabilities	14.91B	15.07B	14.30B	13.48B	12.33B	10.32B
Stockholders Equity	5.14B	4.83B	4.32B	3.91B	3.75B	3.62B
Cash Flow
Free Cash Flow	104.70M	-86.80M	-87.40M	41.00M	-483.80M	-1.09B
Operating Cash Flow	1.32B	1.18B	863.20M	787.30M	392.60M	-236.20M
Investing Cash Flow	-1.44B	-1.51B	-1.86B	-1.22B	-2.30B	-2.53B
Financing Cash Flow	112.90M	489.90M	795.40M	882.30M	2.10B	2.47B

Fraport AG Frankfurt Airport Services Worldwide Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 80.85
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:FRA, the sentiment is Positive. The current price of 80.85 is above the 20-day moving average (MA) of 75.60, above the 50-day MA of 72.57, and above the 200-day MA of 69.53, indicating a bullish trend. The MACD of 1.73 indicates Negative momentum. The RSI at 68.17 is Neutral, neither overbought nor oversold. The STOCH value of 67.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:FRA.

Fraport AG Frankfurt Airport Services Worldwide Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GBF	74 Outperform	€4.54B	24.48	14.63%	1.93%	10.17%	-20.99%
BNR	64 Neutral	€8.20B	19.62	9.62%	4.30%	-3.35%	-23.06%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
HHFA	63 Neutral	€2.24B	50.56	5.78%	0.47%	13.44%	113.13%
FRA	56 Neutral	€7.27B	15.94	9.56%	―	0.11%	2.58%