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

• Market Cap: €6.93B
• Dividend Yield: N/A
• Average Volume (3M): 104.36K
• Price to Earnings (P/E): 17.5
• Beta (1Y): 0.72
• Revenue Growth: 0.11%
• EPS Growth: 2.58%
• Country: DE
• Employees: 19,431
• Sector: Services
• Sector Strength: N/A
• 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: €76.56
• Price Target Upside: 7.83% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: €82.00 ▲(15.49% Upside)

Fraport AG's strong financial recovery and stable balance sheet are the most significant factors contributing to its score. Technical indicators suggest a lack of strong momentum, which slightly dampens the outlook. The valuation is reasonable, but the absence of a dividend yield is a minor drawback.

Positive Factors

Revenue Growth

The company's robust revenue growth post-pandemic indicates a strong market position and effective business model, supporting long-term expansion.

Balance Sheet Health

Improved leverage management enhances financial stability, providing a solid foundation for future investments and reducing financial risk.

Cash Flow Improvement

Consistent improvement in cash flow indicates better cash generation ability, crucial for sustaining operations and funding growth initiatives.

Negative Factors

High Liabilities

High liabilities can limit financial flexibility and pose risks to long-term stability, requiring careful management to avoid financial strain.

Negative Free Cash Flow

Negative free cash flow, despite improvements, indicates challenges in converting income into cash, potentially impacting investment capacity.

Declining EPS Growth

Declining EPS growth suggests challenges in profitability, which could affect investor confidence and the company's ability to reinvest in growth.

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 through multiple streams, primarily from airport operations, which include passenger fees, landing and take-off charges, and service fees from airlines for ground handling and other support services. A significant portion of its earnings also comes from commercial activities within the airport, such as retail and food and beverage concessions, which benefit from the high passenger traffic at Frankfurt Airport. Additionally, Fraport earns revenue from its international investments in other airports, providing management services and receiving a share of the profits. The company has established partnerships with various airlines and retail brands, enhancing its service offerings and driving revenue growth. Economic factors such as passenger travel trends, airline performance, and global tourism also significantly influence Fraport's earnings.

Fraport AG Frankfurt Airport Services Worldwide Financial Statement Overview

Summary

Fraport AG has shown a commendable recovery trajectory post-pandemic, with significant growth in revenue and profitability. The balance sheet reflects a stable financial position with improved leverage, though liabilities remain high. Cash flow is gradually stabilizing, providing a solid base for future investments and growth.

Income Statement

Fraport AG has demonstrated a strong recovery with impressive revenue growth from 2020 onwards. The gross profit margin has improved significantly, reflecting better cost management. Net profit margin also shows a positive trend, indicating enhanced profitability. However, the EBIT margin, while positive, suggests room for further operational efficiency.

Balance Sheet

The company's balance sheet shows a stable equity position with improving stockholders' equity over the years. The debt-to-equity ratio has improved, indicating better leverage management. The equity ratio has remained stable, suggesting a balanced asset structure. However, there is still a considerable level of total liabilities that the company needs to manage.

Cash Flow

The operating cash flow has shown consistent improvement, supporting the company's operational stability. Free cash flow, though negative in recent years, is improving, which indicates potential future financial flexibility. The company needs to focus on converting net income into cash flow more efficiently.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.38B	4.43B	4.00B	3.19B	2.14B	1.68B
Gross Profit	1.14B	1.13B	1.03B	824.70M	266.20M	-643.30M
EBITDA	1.53B	1.56B	1.37B	1.01B	828.40M	-282.50M
Net Income	395.30M	450.60M	393.20M	132.40M	82.80M	-657.60M
Balance Sheet
Total Assets	19.84B	20.25B	18.89B	17.61B	16.24B	14.08B
Cash, Cash Equivalents and Short-Term Investments	2.94B	3.04B	3.16B	2.76B	2.78B	1.95B
Total Debt	0.00	11.16B	11.93B	248.80M	238.50M	259.00M
Total Liabilities	14.70B	15.07B	14.30B	13.48B	12.33B	10.32B
Stockholders Equity	4.83B	4.83B	4.32B	3.91B	3.75B	3.62B
Cash Flow
Free Cash Flow	-106.80M	-86.80M	-87.40M	41.00M	-483.80M	-1.09B
Operating Cash Flow	1.14B	1.18B	863.20M	787.30M	392.60M	-236.20M
Investing Cash Flow	-1.30B	-1.51B	-1.86B	-1.22B	-2.30B	-2.53B
Financing Cash Flow	74.70M	489.90M	795.40M	882.30M	2.10B	2.47B

Fraport AG Frankfurt Airport Services Worldwide Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 71.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:FRA, the sentiment is Negative. The current price of 71 is below the 20-day moving average (MA) of 74.00, below the 50-day MA of 74.42, and above the 200-day MA of 65.53, indicating a neutral trend. The MACD of -0.42 indicates Positive momentum. The RSI at 40.87 is Neutral, neither overbought nor oversold. The STOCH value of 16.35 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	76 Outperform	€3.50B	18.91	14.63%	2.18%	10.17%	-20.99%
FRA	73 Outperform	€6.93B	17.53	9.56%	―	0.11%	2.58%
BNR	60 Neutral	€6.80B	16.07	9.62%	4.39%	-3.35%	-23.06%
HHFA	57 Neutral	€2.07B	58.87	5.78%	0.47%	13.44%	113.13%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%