Latest news with #FraportAG
National Post
13-05-2025
- Business
- National Post
Flying out of Lima's new airport? Leave an extra 45 minutes earlier
Peru seems poised to finally inaugurate a new $2 billion airport to serve its capital city on June 1, after blowing past three previous opening dates. Article content Article content But baffling transportation mishaps are pushing the airport's chief executive officer to issue a dire warning. Travellers: budget an additional 45 minutes to commute to the new terminal, even though it's located right next to the old infrastructure. That's on top of the usual hour it takes to get to the Jorge Chavez International Airport from Lima's main business district during rush hour. Article content 'Our recommendation is that passengers leave 45 minutes earlier than they usually did to get here,' Juan Jose Salmon, CEO of Lima Airport Partners (LAP), said in an interview. Passengers 'are going to face a new route and Lima's traffic in general is complex.' Article content Article content It was never the plan for Latin America's sixth busiest airport to become a symbol of poor urban planning. The result is the fallout of Peru's turbulent politics, having cycled through almost one transport minister per year so far this century. Still, the airport is expected to serve growing demand in Peru, one of the region's fastest growing economies. Article content While LAP – whose majority owner is Fraport AG – has built the terminal, Peru's government had ambitious transportation plans to get passengers in and out of the new airport. The transport ministry planned a new subway, a highway and an eight-lane bridge over the Rimac River to get to it. Article content Except it couldn't finish building any of them in time. Article content The bridge is scheduled to be inaugurated in late 2028, while the rest of the highway will open a few months later. Until then, passengers will pass through prefabricated bridges that have less capacity than the original design, while forcing them to make hairpin turns through traffic-choked roads to get to them. Article content Article content The subway isn't finished either, but its woes are of a larger scale. It is being built to arrive to the old airport. By the time the subway is inaugurated, the old structure will no longer be there. The government first suggested building an extra subway station to get to the new airport, but has since said it will build an above-ground train instead, although plans are still in the preliminary stages. Article content 'The recommendation that LAP is making is important, and it's not necessarily about traffic,' Peru's Transport Minister Raul Perez-Reyes said in a press conference this week. 'About 85,000 people go into the airport every day and I can assure you that many of them don't know where the access route to the new airport is located.' Article content He added that he hopes that travel times to the airport will come down to normal once the terminal has been in operation for several weeks. Article content Salmon said LAP is not planning to file any lawsuits or arbitrations against Peru over the issues with the transportation to the new terminal. What remains unclear, however, is whether the government will impose fines on LAP, which as the concession holder will be inaugurating the airport around four months late. Article content
Yahoo
07-04-2025
- Business
- Yahoo
With A Return On Equity Of 9.7%, Has Fraport AG's (ETR:FRA) Management Done Well?
One of the best investments we can make is in our own knowledge and skill set. With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. To keep the lesson grounded in practicality, we'll use ROE to better understand Fraport AG (ETR:FRA). ROE or return on equity is a useful tool to assess how effectively a company can generate returns on the investment it received from its shareholders. Simply put, it is used to assess the profitability of a company in relation to its equity capital. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. The formula for ROE is: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Fraport is: 9.7% = €502m ÷ €5.2b (Based on the trailing twelve months to December 2024). The 'return' refers to a company's earnings over the last year. That means that for every €1 worth of shareholders' equity, the company generated €0.10 in profit. Check out our latest analysis for Fraport By comparing a company's ROE with its industry average, we can get a quick measure of how good it is. The limitation of this approach is that some companies are quite different from others, even within the same industry classification. If you look at the image below, you can see Fraport has a similar ROE to the average in the Infrastructure industry classification (11%). So while the ROE is not exceptional, at least its acceptable. Even if the ROE is respectable when compared to the industry, its worth checking if the firm's ROE is being aided by high debt levels. If so, this increases its exposure to financial risk. To know the 2 risks we have identified for Fraport visit our risks dashboard for free. Virtually all companies need money to invest in the business, to grow profits. That cash can come from retained earnings, issuing new shares (equity), or debt. In the first two cases, the ROE will capture this use of capital to grow. In the latter case, the debt required for growth will boost returns, but will not impact the shareholders' equity. In this manner the use of debt will boost ROE, even though the core economics of the business stay the same. Fraport does use a high amount of debt to increase returns. It has a debt to equity ratio of 2.38. The combination of a rather low ROE and significant use of debt is not particularly appealing. Debt increases risk and reduces options for the company in the future, so you generally want to see some good returns from using it. Return on equity is useful for comparing the quality of different businesses. Companies that can achieve high returns on equity without too much debt are generally of good quality. If two companies have around the same level of debt to equity, and one has a higher ROE, I'd generally prefer the one with higher ROE. But when a business is high quality, the market often bids it up to a price that reflects this. The rate at which profits are likely to grow, relative to the expectations of profit growth reflected in the current price, must be considered, too. So you might want to take a peek at this data-rich interactive graph of forecasts for the company . Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
21-03-2025
- Business
- Yahoo
At €58.10, Is It Time To Put Fraport AG (ETR:FRA) On Your Watch List?
Fraport AG (ETR:FRA), might not be a large cap stock, but it saw a decent share price growth of 12% on the XTRA over the last few months. The company is now trading at yearly-high levels following the recent surge in its share price. With many analysts covering the mid-cap stock, we may expect any price-sensitive announcements have already been factored into the stock's share price. However, what if the stock is still a bargain? Today we will analyse the most recent data on Fraport's outlook and valuation to see if the opportunity still exists. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. Good news, investors! Fraport is still a bargain right now. Our valuation model shows that the intrinsic value for the stock is €77.39, but it is currently trading at €58.10 on the share market, meaning that there is still an opportunity to buy now. Although, there may be another chance to buy again in the future. This is because Fraport's beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company's shares will likely fall by more than the rest of the market, providing a prime buying opportunity. View our latest analysis for Fraport Future outlook is an important aspect when you're looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Although value investors would argue that it's the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. However, with a negative profit growth of -6.2% expected over the next couple of years, near-term growth certainly doesn't appear to be a driver for a buy decision for Fraport. This certainty tips the risk-return scale towards higher risk. Are you a shareholder? Although FRA is currently undervalued, the adverse prospect of negative growth brings about some degree of risk. We recommend you think about whether you want to increase your portfolio exposure to FRA, or whether diversifying into another stock may be a better move for your total risk and return. Are you a potential investor? If you've been keeping tabs on FRA for some time, but hesitant on making the leap, we recommend you dig deeper into the stock. Given its current undervaluation, now is a great time to make a decision. But keep in mind the risks that come with negative growth prospects in the future. With this in mind, we wouldn't consider investing in a stock unless we had a thorough understanding of the risks. At Simply Wall St, we found 1 warning sign for Fraport and we think they deserve your attention. If you are no longer interested in Fraport, you can use our free platform to see our list of over 50 other stocks with a high growth potential. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
19-03-2025
- Business
- Yahoo
Fraport AG (FPRUF) (FY 2024) Earnings Call Highlights: Record EBITDA and Strategic Expansion ...
EBITDA: Achieved an all-time high of EUR1.3 billion. Net Result: More than EUR500 million, close to the record level of 2018. Passenger Traffic: Frankfurt at 87% recovery rate with a 3.7% increase; international portfolio fully recovered to 2019 levels. Group Net Debt: Approximately EUR8.4 billion with a leverage ratio of 6.4 times. Operating Cash Flow: EUR1.18 billion, a 37% increase from the previous year. Free Cash Flow: Negative at minus EUR675 million due to expansion CapEx. Retail Revenue: Expected increase of 50% by 2027 with Terminal 3 operations. Average Cost of Debt: Expected to rise to a maximum of 3.5% in 2025. Segment EBITDA - Aviation: Increased by more than 21% to EUR374 million. Segment EBITDA - Retail and Real Estate: Slight growth to EUR375 million. Segment EBITDA - International Activities: Strong growth driven by investments in Fraport Greece, Fraport USA, and Lima Airport. Dividend Expectation: No dividend payment expected for 2025 financial year. Warning! GuruFocus has detected 3 Warning Sign with FPRUF. Release Date: March 18, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Fraport AG (FPRUF) achieved an all-time high EBITDA of EUR1.3 billion and a group result of more than EUR500 million, close to the record level of 2018. The group airports outside of Frankfurt have fully recovered to 2019 levels on average, with significant growth in Greece and Peru. Fraport AG (FPRUF) expects a turning point in Frankfurt traffic momentum, driven by new capacities and routes from airlines like Condor and EasyJet. The company is on track with major expansion programs, including the new terminal at Lima Airport and the upcoming opening of a new terminal in Antalya. Fraport AG (FPRUF) is implementing AI initiatives to increase operational efficiency and improve customer satisfaction at Frankfurt Airport. Fraport AG (FPRUF) faces challenges from high location costs and continued low supply of aircraft, impacting traffic growth in Frankfurt. The German aviation tax and increased security costs have made Germany one of the most expensive countries to operate, affecting competitiveness. The company expects a flat to down group result for 2025 due to non-recurring gains from the previous year and ongoing financial pressures. Ground handling remains a loss-making segment, with challenges in renewing the Lufthansa contract and improving financial stability. Fraport AG (FPRUF) does not expect to pay a dividend for the 2025 financial year, focusing instead on reducing leverage. Q: Do you have retail contracts in Terminal 2 running out this year, and do you expect to prolong these contracts until T2 will close next year? A: (Matthias Zieschang, CFO) The retail contracts in Terminal 2 will be finalized at the end of the second quarter as airlines move to Terminal 3. We have solutions with concessionaires, and all contracts for Terminal 3 are awarded and preparing for takeover by April next year. Q: Can you give us some initial indication on CapEx and free cash flow in 2026? A: (Matthias Zieschang, CFO) For 2026, we expect a significant reduction in CapEx compared to 2025, primarily due to the completion of major projects like Lima and Terminal 3. We aim for a clearly positive free cash flow in 2026. Q: What is the outlook for traffic in 2026, and when do you expect it to return to 2019 levels? A: (Stefan Schulte, CEO) We are optimistic about traffic growth in 2026, especially if the German aviation tax is reduced and new aircraft deliveries occur. However, returning to 2019 levels will take at least three to four years. Q: Why has the pickup in Porto Alegre been slow, and is there more compensation expected for its closure? A: (Stefan Schulte, CEO) The slow recovery is due to airlines needing to restore capacities. We received compensation for the closure, but some infrastructure issues known before the flooding were not covered. The outlook for Porto Alegre is positive. Q: What are your plans for the ground-handling segment, given its continued losses? A: (Stefan Schulte, CEO) The main issue is the long-term contract with Lufthansa, which limits price increases. We aim to negotiate better terms and improve productivity. Exiting the business is not currently planned, as stability in ground operations is crucial. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
Yahoo
19-02-2025
- Business
- Yahoo
Fraport (ETR:FRA) shareholders have endured a 12% loss from investing in the stock three years ago
Fraport AG (ETR:FRA) shareholders should be happy to see the share price up 14% in the last quarter. But that cannot eclipse the less-than-impressive returns over the last three years. In fact, the share price is down 12% in the last three years, falling well short of the market return. So let's have a look and see if the longer term performance of the company has been in line with the underlying business' progress. Check out our latest analysis for Fraport While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price. Fraport became profitable within the last five years. That would generally be considered a positive, so we are surprised to see the share price is down. So it's worth looking at other metrics to try to understand the share price move. We note that, in three years, revenue has actually grown at a 26% annual rate, so that doesn't seem to be a reason to sell shares. It's probably worth investigating Fraport further; while we may be missing something on this analysis, there might also be an opportunity. You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values). It's probably worth noting that the CEO is paid less than the median at similar sized companies. It's always worth keeping an eye on CEO pay, but a more important question is whether the company will grow earnings throughout the years. So we recommend checking out this free report showing consensus forecasts Fraport shareholders gained a total return of 11% during the year. But that was short of the market average. On the bright side, that's still a gain, and it is certainly better than the yearly loss of about 1.8% endured over half a decade. It could well be that the business is stabilizing. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Consider for instance, the ever-present spectre of investment risk. We've identified 1 warning sign with Fraport , and understanding them should be part of your investment process. But note: Fraport may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast). Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on German exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
