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

• Market Cap: €6.98B
• Dividend Yield: N/A
• Average Volume (3M): 112.71K
• Price to Earnings (P/E): 17.7
• Beta (1Y): 0.79
• Revenue Growth: 3.38%
• EPS Growth: -14.57%
• Country: DE
• Employees: 19,431
• Sector: Services
• Sector Strength: N/A
• Industry: Airlines, Airports & Air Services
• EPS (TTM): 1.20
• Shares Outstanding: 92,468,704
• 10 Day Avg. Volume: 92,523
• 30 Day Avg. Volume: 112,706
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: €72.08
• Price Target Upside: -3.44% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 14

• Rating: 74 Outperform
• Price Target: €71.00 ▼(-4.89% Downside)

The overall score reflects Fraport AG's strong financial recovery and stable balance sheet, which are the most significant factors. Positive technical momentum supports the score but is moderated by overbought signals. Valuation is reasonable, though the absence of a dividend yield limits its attractiveness.

Positive Factors

Cash Flow

For 2025, the company confirms FCF close to breakeven as capex will start to fall.

Future Performance

The company expects a volume turnaround with moderate traffic and single-digit EBITDA growth for FY-25.

Segment Performance

The Aviation segment posted a Q4 EBITDA of €79m, a slight 4% beat, benefiting from a 9.5% fee increase in Frankfurt.

Negative Factors

Earnings

Fraport is more exposed to EPS downgrades relative to peers due to its reliance on US travelers, business travel, and USD exposure.

Financial Performance

Fraport's operational leverage means that a 1% cut to traffic can lead to a 2-3% cut to EPS, worsening its financial position in a weakening economic environment.

Traffic Demand

A deterioration in demand for transatlantic travel is contributing to a negative traffic outlook, impacting Fraport significantly.

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 demonstrated a strong recovery with impressive revenue growth and improved profitability margins. The balance sheet indicates better leverage management, though liabilities remain high. Cash flow is improving, supporting operational stability and potential future financial flexibility.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.43B	4.00B	3.19B	2.14B	1.68B
Gross Profit	1.13B	1.03B	824.70M	266.20M	-643.30M
EBITDA	1.56B	1.29B	940.00M	828.40M	-282.50M
Net Income	450.60M	393.20M	132.40M	82.80M	-657.60M
Balance Sheet
Total Assets	20.25B	18.89B	17.61B	16.24B	14.08B
Cash, Cash Equivalents and Short-Term Investments	3.04B	3.16B	2.76B	2.78B	1.95B
Total Debt	159.50M	11.93B	248.80M	238.50M	259.00M
Total Liabilities	15.07B	14.30B	13.48B	12.33B	10.32B
Stockholders Equity	4.83B	4.32B	3.91B	3.75B	3.62B
Cash Flow
Free Cash Flow	-86.80M	-87.40M	41.00M	-483.80M	-1.09B
Operating Cash Flow	1.18B	863.20M	787.30M	392.60M	-236.20M
Investing Cash Flow	-1.51B	-1.86B	-1.22B	-2.30B	-2.53B
Financing Cash Flow	489.90M	795.40M	882.30M	2.10B	2.47B

Fraport AG Frankfurt Airport Services Worldwide Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 74.65
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 74.65 is above the 20-day moving average (MA) of 73.13, above the 50-day MA of 67.44, and above the 200-day MA of 59.37, indicating a bullish trend. The MACD of 2.94 indicates Positive momentum. The RSI at 65.64 is Neutral, neither overbought nor oversold. The STOCH value of 23.56 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
FRA	74 Outperform	€6.98B	17.67	8.49%	―	3.38%	-14.57%
Sector *	56 Neutral	$1.84B	9.56	8.02%	2.47%	5.38%	-37.86%
0NRG	―	€3.42B	18.40	15.17%	―	―	―
0MPT	―	€7.83B	18.82	9.86%	―	―	―
0EDV	―	€602.73M	5.62	13.55%	―	―	―
0NBI	―	€2.07B	58.59	5.02%	―	―	―
EUK2	―	€602.73M	9.03	13.55%	―	―	―