Aeroports de Paris ADP (ADP) AI Stock Analysis

• Market Cap: €12.01B
• Dividend Yield: 2.5%
• Average Volume (3M): 74.95K
• Price to Earnings (P/E): 130.3
• Beta (1Y): 1.19
• Revenue Growth: 10.23%
• EPS Growth: -88.02%
• Country: FR
• Employees: 29,330
• Sector: Services
• Sector Strength: N/A
• Industry: Airlines, Airports & Air Services
• EPS (TTM): 0.98
• Shares Outstanding: 98,960,600
• 10 Day Avg. Volume: 92,483
• 30 Day Avg. Volume: 74,953
• PEG Ratio: -0.70
• Price to Book (P/B): 2.50
• Price to Sales (P/S): 1.79
• P/FCF Ratio: 25.35
• 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: €120.35
• Price Target Upside: 0.29% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 60 Neutral
• Price Target: €117.00 ▼(-2.50% Downside)

Aeroports de Paris ADP's overall stock score reflects strong financial performance with robust revenue growth and operational efficiency. However, high leverage and a declining net profit margin pose risks. The technical analysis indicates a lack of clear momentum, and the high P/E ratio suggests overvaluation, which could deter value-focused investors.

Positive Factors

Revenue Growth

Strong revenue growth indicates successful expansion and increased demand for ADP's airport services, which supports long-term business sustainability.

Operational Efficiency

High gross profit margins suggest effective cost management and pricing power, which are crucial for maintaining competitive advantage and profitability.

Cash Generation

Efficient cash generation ensures ADP can fund operations and investments without relying heavily on external financing, enhancing financial resilience.

Negative Factors

High Leverage

High leverage can increase financial risk, especially in economic downturns, potentially limiting ADP's ability to invest in growth opportunities.

Declining Net Profit Margin

A declining net profit margin may signal rising costs or pricing pressures, which could erode profitability if not addressed effectively.

Free Cash Flow Decline

A decline in free cash flow limits ADP's ability to invest in new projects or return capital to shareholders, potentially impacting future growth.

Aeroports de Paris ADP Business Overview & Revenue Model

Company Description

Aeroports de Paris SA owns and operates airports worldwide. The company operates through Aviation, Retail and Services, Real Estate, International and Airport Developments, and Other Activities segments. The Aviation segment offers security and airport safety services, such as security checkpoints, screening systems, aircraft rescue, and fire-fighting services. The Retail and Services segment provides retail activities comprising of bars, restaurants, banks, car rentals, and retails shops, as well as engages in leasing of space for terminals, advertising, restaurant, and car park services. This segment is also involved in production and supply of heat, drinking water, and access to the chilled distribution networks. The Real Estate segment engages in construction, commercialization, and lease management of office, logistic buildings, and freight terminals; and provides property leasing services for airport terminals, as well as rents serviced land. The International and Airport Developments segment designs and operates airport activities. The Other Activities segment offers telecom and cybersecurity services. It operates and manages approximately 28 airports worldwide. Aeroports de Paris SA was incorporated in 1945 and is based in Tremblay-en-France, France.

How the Company Makes Money

ADP generates revenue through multiple streams, predominantly from aeronautical and non-aeronautical activities. Aeronautical revenues are derived from fees charged to airlines for landing, takeoff, and terminal usage, which are influenced by passenger traffic and aircraft movements. Non-aeronautical revenues come from retail and duty-free concessions, real estate leasing, parking fees, and advertising within the airport premises. Additionally, ADP has established partnerships with airlines and other stakeholders in the tourism and travel sector, which contribute to its earnings. The company also invests in airport infrastructure development and enhancement projects, which can lead to increased capacity and elevated service levels, further driving revenue growth.

Aeroports de Paris ADP Financial Statement Overview

Summary

Aeroports de Paris ADP has demonstrated strong revenue growth and operational efficiency, with robust EBIT and EBITDA margins. However, challenges include high leverage as seen in the debt-to-equity ratio and a decline in net profit margins. Cash flow generation remains strong, but the company should focus on managing debt levels for sustainable growth.

Income Statement

Aeroports de Paris ADP has shown a robust recovery in its revenue over the years, with a significant revenue growth of over 13% from 2023 to 2024. The gross profit margin for 2024 stands at 64.6%, indicating strong profitability, though the net profit margin has decreased to 5.6% from 11.5% the previous year. The EBIT and EBITDA margins are healthy at 16.1% and 33.4%, respectively, reflecting solid operational performance.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 2.42, indicating significant leverage. However, the company has maintained a stable equity ratio of 21.9%, suggesting a reasonable level of shareholder equity relative to total assets. The return on equity has declined to 7.7%, showing a decrease in profitability from the perspective of equity holders.

Cash Flow

Operating cash flow to net income ratio is strong at 4.46, demonstrating efficient cash generation from operations relative to net income. However, free cash flow has declined, resulting in a negative growth rate from the previous year. The free cash flow to net income ratio is 1.27, indicating decent cash flow relative to net earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.43B	6.16B	5.50B	4.69B	2.78B	2.14B
Gross Profit	4.14B	3.98B	2.40B	1.69B	520.00M	96.00M
EBITDA	1.97B	2.05B	2.13B	1.83B	873.00M	-615.00M
Net Income	92.00M	342.00M	631.00M	516.00M	-248.00M	-1.17B
Balance Sheet
Total Assets	20.00B	20.18B	19.66B	18.84B	18.36B	18.57B
Cash, Cash Equivalents and Short-Term Investments	1.94B	2.17B	2.44B	2.63B	2.38B	3.46B
Total Debt	10.59B	10.67B	9.82B	9.84B	10.17B	10.79B
Total Liabilities	14.92B	14.67B	14.36B	13.93B	14.13B	14.31B
Stockholders Equity	4.07B	4.42B	4.36B	4.03B	3.52B	3.65B
Cash Flow
Free Cash Flow	557.00M	435.00M	578.00M	645.00M	24.00M	-730.00M
Operating Cash Flow	1.65B	1.52B	1.59B	1.34B	551.00M	118.00M
Investing Cash Flow	-1.45B	-1.46B	-1.25B	-726.00M	-1.09B	-2.12B
Financing Cash Flow	-253.00M	-458.00M	-721.00M	-367.00M	-536.00M	3.49B

Aeroports de Paris ADP Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 120.00
• 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 FR:ADP, the sentiment is Positive. The current price of 120 is above the 20-day moving average (MA) of 116.63, above the 50-day MA of 114.49, and above the 200-day MA of 108.32, indicating a bullish trend. The MACD of 2.43 indicates Negative momentum. The RSI at 59.86 is Neutral, neither overbought nor oversold. The STOCH value of 62.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FR:ADP.

Aeroports de Paris ADP Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DEC	―	€3.25B	13.53	11.69%	3.53%	5.80%	-9.84%
ADP	―	€12.01B	130.30	2.20%	2.50%	10.23%	-88.02%
Sector *	―	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
AF	―	€2.94B	3.09	―	―	5.85%	256.22%