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

• Market Cap: €6.80B
• Dividend Yield: N/A
• Average Volume (3M): 104.36K
• Price to Earnings (P/E): 15.0
• 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): 0.39
• Shares Outstanding: 92,468,704
• 10 Day Avg. Volume: 78,733
• 30 Day Avg. Volume: 104,361
• PEG Ratio: -3.48
• Price to Book (P/B): 1.25
• Price to Sales (P/S): 1.46
• P/FCF Ratio: 15.42
• 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: €82.15
• Price Target Upside: 11.69% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11
• EPS Forecast (FY): 3.72
• Revenue Forecast (FY): €4.56B

• Rating: 63 Neutral
• Price Target: €82.00 ▲(11.49% Upside)
• Action: Reiterated Date: 03/19/26
• Date: Action: Reiterated 03/19/26

The score is driven primarily by solid profitability and strong operating cash generation, offset by high leverage and a historically volatile free-cash-flow profile. Technicals are neutral-to-soft in the near term, while valuation appears reasonable based on the P/E ratio.

Positive Factors

Strong operating margins

Fraport's 2025 operating margin (~19%) and EBITDA margin (~31%) indicate durable underlying profitability following the traffic recovery. Sustained operating margins reflect structural strength in aeronautical and commercial pricing, supporting long-term cash generation and resilience to passenger volatility.

Improving operating cash generation

Operating cash flow has grown materially from ~€0.86B (2023) to ~€1.41B (2025), showing better core cash generation. Stronger OCF improves the company's ability to fund maintenance capex, service debt, and sustain commercial investments—key for a capital-intensive airport operator over the medium term.

Diversified airport business model

Fraport earns from aeronautical fees, ground and terminal services, retail and real-estate leasing, and international airport stakes. This diversified mix reduces dependence on any single revenue source, stabilizes cash across traffic cycles, and supports long-term commercial monetization opportunities.

Negative Factors

High leverage

Reported debt-to-equity around 2.3–2.8 leaves the company materially levered for a capital-intensive operator. Elevated leverage reduces financial flexibility for large infrastructure cycles, increases refinancing risk in higher-rate environments, and constrains capacity to absorb revenue shocks without asset sales or equity measures.

Volatile free cash flow

Free cash flow was negative in 2023–2024 and only rebounded to ~€0.42B in 2025, reflecting uneven capex and timing. Such volatility limits sustained deleveraging, elevates reliance on operating improvements or external funding, and leaves less predictable capacity to finance strategic investments.

Slowing revenue growth and margin pressure

Revenue growth moderated to roughly 1% in 2025 after multi-year rebound, while margins compressed versus 2024. Slower top-line momentum and margin pressure reduce cash conversion potential and make it harder to restore balance-sheet strength given ongoing capex needs and the sector's long investment cycles.

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 primarily generates revenue by operating and commercializing airport infrastructure—most notably Frankfurt Airport—through a mix of aviation-related charges and non-aviation commercial income, supplemented by earnings from international airport investments. Key revenue streams typically include: (1) Aviation charges: fees paid by airlines and other aviation users for airport usage, such as charges related to landing/takeoff, passenger-related charges, aircraft parking, and use of airport infrastructure and services. These revenues are driven by passenger volumes, aircraft movements, airline route networks, and regulated/contractual fee structures. (2) Ground and terminal services: income from providing operational services at the airport (e.g., passenger/terminal handling services and other operational support activities where applicable). (3) Retail, food & beverage, and duty-free concessions: rent, concession fees, and revenue-share arrangements with shops, restaurants, and duty-free operators located in terminals; performance depends on passenger footfall, dwell time, and tenant mix. (4) Real estate and facility rentals: leasing of space and properties on airport premises (e.g., offices, logistics areas, hotels or other commercial tenants where present), plus parking and other passenger-facing facility revenues. (5) International business (airport stakes/management): dividends, profit-sharing, management fees, and/or consolidation of revenues and earnings from airports outside Germany in which Fraport holds equity stakes or operating/management roles; results depend on traffic, local regulatory frameworks, concession agreements, and currency effects. Significant factors affecting earnings include passenger demand and airline capacity, aeronautical charge regulation and concession terms, commercial spend per passenger, and long-lived infrastructure investment cycles. Specific named partnerships, contract terms, or exact segment percentages are null.

Fraport AG Frankfurt Airport Services Worldwide Financial Statement Overview

Summary

Operating profitability and operating cash flow are solid (2025 operating margin ~19%, EBITDA margin ~31%; operating cash flow ~€1.41B), but the balance sheet is a key constraint with high leverage (debt-to-equity ~2.3–2.8). Free cash flow has been volatile (negative in 2023–2024, rebound in 2025) and revenue growth has slowed (~1% in 2025), limiting the score despite the recovery.

Income Statement

Profitability is solid and consistent post-recovery, with net margins holding around ~10% in 2023–2025 and strong operating profitability (2025 operating margin ~19%, EBITDA margin ~31%). Revenue growth has moderated materially (2025 ~1% vs. 2023–2024 double-digit), suggesting a shift from rebound to a more mature growth profile. The key weakness is margin compression versus 2024 (lower gross and EBITDA margins in 2025), and the business is still not far removed from the sharp 2020 downturn.

Balance Sheet

Leverage is the main constraint: debt is very high relative to equity (debt-to-equity ~2.3–2.8 in 2023–2025), which reduces financial flexibility for a cyclical, capital-intensive airport operator. Returns on equity are positive but only mid-single to high-single digits (~8–9% in 2024–2025), indicating decent profitability but not enough to fully offset the balance sheet risk. Equity has improved versus earlier years, but the capital structure remains meaningfully levered.

Cash Flow

Operating cash flow is strong and improving (2023: ~€0.86B; 2024: ~€1.18B; 2025: ~€1.41B), indicating healthy underlying cash generation. However, free cash flow has been volatile—negative in 2023–2024 and then a sharp rebound in 2025 (~€0.42B)—implying heavy and/or uneven investment spending. Cash conversion also looks mixed, with 2025 free cash flow covering only about ~30% of net income, which limits near-term deleveraging capacity despite the 2025 improvement.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.43B	4.43B	4.00B	3.19B	2.14B
Gross Profit	1.06B	1.13B	1.03B	824.70M	266.20M
EBITDA	1.39B	1.56B	1.37B	1.01B	828.40M
Net Income	431.80M	450.60M	393.20M	132.40M	82.80M
Balance Sheet
Total Assets	20.79B	20.25B	18.89B	17.61B	16.24B
Cash, Cash Equivalents and Short-Term Investments	3.20B	3.04B	3.16B	2.76B	2.78B
Total Debt	12.29B	11.16B	11.93B	248.80M	238.50M
Total Liabilities	15.26B	15.07B	14.30B	13.48B	12.33B
Stockholders Equity	5.18B	4.83B	4.32B	3.91B	3.75B
Cash Flow
Free Cash Flow	419.20M	-86.80M	-87.40M	41.00M	-483.80M
Operating Cash Flow	1.41B	1.18B	863.20M	787.30M	392.60M
Investing Cash Flow	-1.31B	-1.51B	-1.86B	-1.22B	-2.30B
Financing Cash Flow	-247.80M	489.90M	795.40M	882.30M	2.10B

Fraport AG Frankfurt Airport Services Worldwide Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 73.55
• 50DMA: Negative
• 100DMA: Negative
• 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 Neutral. The current price of 73.55 is below the 20-day moving average (MA) of 77.90, below the 50-day MA of 78.09, and above the 200-day MA of 72.59, indicating a neutral trend. The MACD of -1.53 indicates Positive momentum. The RSI at 44.36 is Neutral, neither overbought nor oversold. The STOCH value of 76.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
FRA	63 Neutral	€6.80B	14.97	9.57%	―	0.11%	2.58%
GBF	63 Neutral	€3.58B	22.68	13.51%	1.93%	10.17%	-20.99%
HHFA	63 Neutral	€2.22B	161.63	-1.01%	0.47%	13.44%	113.13%
BNR	54 Neutral	€7.00B	27.05	6.03%	4.30%	-3.35%	-23.06%