Let yourself be enchanted!

Last Updated: 16. November 2023By

How long has it been since your last long-distance trip? If you think back, you will surely have many pleasant memories. Whenever I am at an airport, my wanderlust is growing. Stocks like Fraport are exemplary for this. We explain to you what the stock is all about and what you absolutely have to pay attention to.

The globally active corporation Fraport is the operator of Frankfurt Airport, one of the largest air traffic hubs in Europe and the second largest European freight airport. The company works in four areas: Development and operation of airports (Aviation), ground handling services (Ground Handling), trading and leasing management of airport real estate (Retail & Real Estate) and other services.

Flying is making a comeback Fraport records a sustained positive development of passenger numbers. While Frankfurt Airport reached around 80% of the pre-crisis level in the first half-year, Fraport Greece already exceeded the traffic volume of 2019. With increasing passenger numbers, sales rose by 34% to 1.8 billion euros. With a profit of 81 million euros, Fraport was again clearly profitable. Last year, the company was in the red with 49 million euros.

In the second quarter, operating profit was again above pre-crisis levels. The signs for the seasonally important third quarter were positive. In August, 5.9 million passengers used Frankfurt Airport; that was 13% more than in the previous year. The international affiliated airports also recorded significant increases. At the airports of Ljubljana (Slovenia), Lima (Peru), Burgas and Varna (Bulgaria) as well as Antalya (Turkey), passenger numbers increased in the double-digit range. The total volume of airports operated by Fraport increased by 9% to 21.9 million passengers.

How we see the stock We see a need for catch-up with reducing debt. Due to high investment activity, net debt rose to 7.5 billion euros at the end of the first half-year. This corresponds to almost seven times the operating result before depreciation. The maturity profile of the financial liabilities is well spread and predominantly long-term. The short to medium-term financing requirement is covered by the available liquidity. There are currently no risks to the stock. There is no dividend due to the debt. The P/E ratio is low, but there is no pressure to act – it is worthwhile to stay on the sidelines here.