Aeroports de Paris ADP (ADP) AI Stock Analysis

• Market Cap: €11.25B
• Dividend Yield: 2.64%
• Average Volume (3M): 87.05K
• Price to Earnings (P/E): 127.2
• 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: 87,710
• 30 Day Avg. Volume: 87,050
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: €120.46
• Price Target Upside: 6.32% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 6

• Rating: 70 Outperform
• Price Target: €123.00 ▲(8.56% Upside)

Aeroports de Paris ADP's overall stock score is driven by strong financial performance and positive technical indicators. However, the high P/E ratio suggests potential overvaluation, which is a significant risk factor. The company's ability to manage its debt and improve profitability will be crucial for future performance.

Positive Factors

Dividend Distribution

The non-cash nature of FX one-offs at TAV/GMR allows management to propose an adjustment in its distribution policy, protecting the dividend payout ratio.

Financial Performance

Groupe ADP published a good set of FY-24 results, beating consensus expectations.

Traffic and Retail Operations

Business operations, including traffic and retail, are in line with management expectations and adhere to FY25 guidance.

Negative Factors

Corporate Tax Surcharge

A significant charge is expected due to the French corporate tax surcharge, which weighs heavily on the first half of the year's earnings.

Currency Depreciation

The accelerated depreciation of the Turkish Lira and weaker €/Indian Rupee have pushed up FX losses in financial expenses and burdened deferred tax assets, impacting ADP's financials.

Regulatory Environment

Groupe ADP has underperformed since its results release, in view of the upcoming regulatory agreement and related CapEx.

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 exist with high leverage as seen in the debt-to-equity ratio, and the net profit margin has decreased. Cash flow generation remains strong despite a decline in free cash flow.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.16B	5.50B	4.69B	2.78B	2.14B
Gross Profit	3.98B	2.40B	1.69B	520.00M	96.00M
EBITDA	2.05B	2.13B	1.83B	873.00M	-615.00M
Net Income	342.00M	631.00M	516.00M	-248.00M	-1.17B
Balance Sheet
Total Assets	20.18B	19.66B	18.84B	18.36B	18.57B
Cash, Cash Equivalents and Short-Term Investments	2.10B	2.44B	2.63B	2.38B	3.46B
Total Debt	10.67B	9.82B	9.84B	10.17B	10.79B
Total Liabilities	14.67B	14.36B	13.93B	14.13B	14.31B
Stockholders Equity	4.42B	4.36B	4.03B	3.52B	3.65B
Cash Flow
Free Cash Flow	435.00M	578.00M	645.00M	24.00M	-730.00M
Operating Cash Flow	1.52B	1.59B	1.34B	551.00M	118.00M
Investing Cash Flow	-1.46B	-1.25B	-726.00M	-1.09B	-2.12B
Financing Cash Flow	-458.00M	-721.00M	-367.00M	-536.00M	3.49B

Aeroports de Paris ADP Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 113.30
• 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 FR:ADP, the sentiment is Neutral. The current price of 113.3 is below the 20-day moving average (MA) of 116.29, above the 50-day MA of 110.97, and above the 200-day MA of 106.78, indicating a neutral trend. The MACD of 2.69 indicates Positive momentum. The RSI at 45.27 is Neutral, neither overbought nor oversold. The STOCH value of 30.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
ADP	70 Outperform	€11.25B	127.19	2.20%	2.64%	10.23%	-88.02%
Sector *	57 Neutral	$1.84B	9.34	8.02%	2.47%	5.38%	-37.86%
0LN7	―	€3.62B	3.79		―	―	―
0MGO	―	€3.15B	13.53	11.69%	―	―	―

Aeroports de Paris ADP Corporate Events

Aéroports de Paris Announces Bond Buyback Results

Aéroports de Paris SA announced the results of its buyback offer for euro bonds issued in 2020, following a dual-tranche bond issue. The company accepted repurchase offers for a total nominal amount of 250 million euros, leaving 750 million euros of the existing bonds in circulation. This financial maneuver is part of the company’s strategy to manage its debt effectively, potentially impacting its financial stability and market positioning.