After several weeks of range-bound movement, shares in Aéroports de Paris could enter into a new clear trend. The exit out of the current trading range could be the signal for a return of volatility.
Summary
● The company presents an interesting fundamental situation from a short-term investment perspective.
● According to Refinitiv, the company's ESG score for its industry is good.
Strengths
● Before interest, taxes, depreciation and amortization, the company's margins are particularly high.
● Over the last twelve months, the sales forecast has been frequently revised upwards.
● Sales forecast by analysts have been recently revised upwards.
● Over the past four months, analysts' average price target has been revised upwards significantly.
● Over the past twelve months, analysts' opinions have been strongly revised upwards.
● The divergence of price targets given by the various analysts who make up the consensus is relatively low, suggesting a consensus method of evaluating the company and its prospects.
● Historically, the company has been releasing figures that are above expectations.
Weaknesses
● The company's earnings growth outlook lacks momentum and is a weakness.
● One of the major weak points of the company is its financial situation.
● The company's enterprise value to sales, at 3.36 times its current sales, is high.
● The valuation of the company is particularly high given the cash flows generated by its activity.
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Aéroports de Paris develops and manages airports, including Paris-Charles de Gaulle, Paris-Orly and Paris-Le Bourget. In 2023, the Group handled c. 99.7 million passengers at Paris-CDG and Paris-Orly, and c. 326.7 million passengers abroad. Boasting an exceptional geographic location and a major catchment area, Aéroports de Paris is pursuing its strategy of adapting and modernizing its terminal facilities, upgrading quality of services and developing retail and real estate businesses. Sales break down by activity as follows:
- supply of airport services (32.9%): air traffic management, intermodal transportation and terminal management, telecommunication spaces, and installation of airport infrastructures, etc.;
- operating sales areas and services (30.5%): shops, restaurants, banks, exchange offices, etc.;
- real estate management (5.4%): land and commercial real estate property leasing (businesses, offices, hotels, logistics buildings, passenger registration and transfer, baggage handling, aircraft management (cleaning, guidance, storage and starting assistance, aircraft loading and unloading), etc.;
- other (31.2%): including international airport management, airport engineering services, specialized telecommunications services, etc.