Fraport (XTRA:FRA) - Share price, News & Analysis

FRA fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	4/6
Past Performance	1/6
Financial Health	1/6
Dividends	0/6

FRA Stock Overview

Fraport AG owns and operates airports in Germany, rest of Europe, Asia, and the United States.

Rewards

Trading at 90% below our estimate of its fair value

Earnings are forecast to grow 43.65% per year

Became profitable this year

Risk Analysis

Interest payments are not well covered by earnings

Large one-off items impacting financial results

Fraport Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Fraport
Historical stock prices
Current Share Price	€45.72
52 Week High	€69.90
52 Week Low	€44.88
Beta	1.87
1 Month Change	-9.32%
3 Month Change	-8.96%
1 Year Change	-26.38%
3 Year Change	-39.52%
5 Year Change	-40.85%
Change since IPO	31.38%

Recent News & Updates

May 13

Fraport (ETR:FRA) Might Be Having Difficulty Using Its Capital Effectively

To find a multi-bagger stock, what are the underlying trends we should look for in a business? One common approach is...

Shareholder Returns

	FRA	DE Infrastructure	DE Market
7D	-6.5%	-5.2%	-0.1%
1Y	-26.4%	-26.4%	-22.0%

Return vs Industry: FRA underperformed the German Infrastructure industry which returned -25.4% over the past year.

Return vs Market: FRA underperformed the German Market which returned -23% over the past year.

Price Volatility

Is FRA's price volatile compared to industry and market?
FRA volatility
FRA Average Weekly Movement	4.7%
Infrastructure Industry Average Movement	4.1%
Market Average Movement	5.6%
10% most volatile stocks in DE Market	10.0%
10% least volatile stocks in DE Market	2.8%

Stable Share Price: FRA is not significantly more volatile than the rest of German stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: FRA's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1924	18,400	Stefan Schulte	https://www.fraport.com

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.

Fraport Fundamentals Summary

How do Fraport's earnings and revenue compare to its market cap?
FRA fundamental statistics
Market Cap	€4.22b
Earnings (TTM)	€39.60m
Revenue (TTM)	€2.34b

106.7x

P/E Ratio

1.8x

P/S Ratio

Is FRA overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
FRA income statement (TTM)
Revenue	€2.34b
Cost of Revenue	€1.74b
Gross Profit	€594.60m
Other Expenses	€555.00m
Earnings	€39.60m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Aug 09, 2022

Earnings per share (EPS)	0.43
Gross Margin	25.45%
Net Profit Margin	1.70%
Debt/Equity Ratio	269.1%

How did FRA perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is FRA undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for FRA?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for FRA. This is calculated by dividing FRA's market cap by their current preferred multiple.
What is FRA's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	€4.22b

FRA key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	5.3x
Enterprise Value/EBITDA	28.4x
PEG Ratio	2.4x

Price to Earnings Ratio vs Peers

How does FRA's PE Ratio compare to its peers?

FRA PE Ratio vs Peers

The above table shows the PE ratio for FRA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	61.6x

Forward PE

Price-To-Earnings vs Peers: FRA is expensive based on its Price-To-Earnings Ratio (106.7x) compared to the peer average (61.6x).

Price to Earnings Ratio vs Industry

How does FRA's PE Ratio compare vs other companies in the Infrastructure Industry?

Price-To-Earnings vs Industry: FRA is expensive based on its Price-To-Earnings Ratio (106.7x) compared to the European Infrastructure industry average (12.2x)

Price to Earnings Ratio vs Fair Ratio

What is FRA's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

FRA PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	106.7x
Fair PE Ratio	44.3x

Price-To-Earnings vs Fair Ratio: FRA is expensive based on its Price-To-Earnings Ratio (106.7x) compared to the estimated Fair Price-To-Earnings Ratio (44.3x).

Share Price vs Fair Value

What is the Fair Price of FRA when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: FRA (€45.72) is trading below our estimate of fair value (€458.16)

Significantly Below Fair Value: FRA is trading below fair value by more than 20%.

Price to Earnings Growth Ratio

PEG Ratio: FRA is poor value based on its PEG Ratio (2.4x)

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Future Growth

How is Fraport forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

43.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: FRA's forecast earnings growth (43.7% per year) is above the savings rate (-0.05%).

Earnings vs Market: FRA's earnings (43.7% per year) are forecast to grow faster than the German market (8.3% per year).

High Growth Earnings: FRA's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: FRA's revenue (9% per year) is forecast to grow faster than the German market (4.8% per year).

High Growth Revenue: FRA's revenue (9% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: FRA's Return on Equity is forecast to be low in 3 years time (9.6%).

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Past Performance

How has Fraport performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-44.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: FRA has a large one-off gain of €325.9M impacting its March 31 2022 financial results.

Growing Profit Margin: FRA became profitable in the past.

Past Earnings Growth Analysis

Earnings Trend: FRA's earnings have declined by 44.3% per year over the past 5 years.

Accelerating Growth: FRA has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: FRA has become profitable in the last year, making it difficult to compare its past year earnings growth to the Infrastructure industry (26.9%).

Return on Equity

High ROE: FRA's Return on Equity (1.3%) is considered low.

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Financial Health

How is Fraport's financial position?

Financial Health Score

1/6

Financial Health Score 1/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: FRA's short term assets (€2.8B) exceed its short term liabilities (€1.5B).

Long Term Liabilities: FRA's short term assets (€2.8B) do not cover its long term liabilities (€11.2B).

Debt to Equity History and Analysis

Debt Level: FRA's net debt to equity ratio (208.1%) is considered high.

Reducing Debt: FRA's debt to equity ratio has increased from 101.2% to 269.1% over the past 5 years.

Debt Coverage: FRA's debt is not well covered by operating cash flow (5.9%).

Interest Coverage: FRA's interest payments on its debt are not well covered by EBIT (0.1x coverage).

Balance Sheet

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Dividend

What is Fraport current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

1.17%

Forecast Dividend Yield

Dividend Yield vs Market

Notable Dividend: Unable to evaluate FRA's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate FRA's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if FRA's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if FRA's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: FRA is not paying a notable dividend for the German market.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as FRA has not reported any payouts.

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Management

How experienced are the management team and are they aligned to shareholders interests?

10.7yrs

Average management tenure

CEO

Stefan Schulte (61 yo)

19.42yrs

Tenure

€2,756,000

Compensation

Dr. Stefan Schulte has been the Chairman of Executive Board and Chief Executive Officer at Fraport AG since September 1, 2009 and has been its Member of the Executive Board since 2003. Dr. Schulte served a...

CEO Compensation Analysis

Compensation vs Market: Stefan's total compensation ($USD2.91M) is about average for companies of similar size in the German market ($USD2.44M).

Compensation vs Earnings: Stefan's compensation has been consistent with company performance over the past year.

Leadership Team

Experienced Management: FRA's management team is seasoned and experienced (10.7 years average tenure).

Board Members

Experienced Board: FRA's board of directors are considered experienced (9.1 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/06/24 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31