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| 08.08.25 04:39:14 |
Fraport AG Just Missed Earnings - But Analysts Have Updated Their Models |
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**Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!**
It's been a pretty great week for Fraport AG (ETR:FRA) shareholders, with its shares surging 14% to €74.80 in the week since its latest half-yearly results. It was not a great result overall. While revenues of €2.0b were in line with analyst predictions, earnings were less than expected, missing statutory estimates by 12% to hit €1.20 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Fraport after the latest results.
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Taking into account the latest results, Fraport's 15 analysts currently expect revenues in 2025 to be €4.47b, approximately in line with the last 12 months. Statutory per-share earnings are expected to be €4.35, roughly flat on the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of €4.42b and earnings per share (EPS) of €4.62 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.
Check out our latest analysis for Fraport
It might be a surprise to learn that the consensus price target was broadly unchanged at €69.16, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Fraport analyst has a price target of €90.00 per share, while the most pessimistic values it at €50.00. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Fraport's past performance and to peers in the same industry. It's pretty clear that there is an expectation that Fraport's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 1.1% growth on an annualised basis. This is compared to a historical growth rate of 20% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 3.6% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Fraport.
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The Bottom Line
The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Fraport's revenue is expected to perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Fraport going out to 2027, and you can see them free on our platform here..
Even so, be aware that Fraport is showing 1 warning sign in our investment analysis, you should know about...
Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This 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.
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| 29.07.25 12:27:29 |
Investoren in Fraport (ETR:FRA) haben in den letzten fünf Jahren eine stellare Rendite von 102% gesehen |
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**Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!**
**Stock Market Potential: Eine hellere Perspektive**
Wenn es darum geht, einen Gewinn auf dem Aktienmarkt zu erzielen, ist es wichtig, das Wachstumspotenzial zu berücksichtigen. In diesem Artikel erkunden wir den Fall der Fraport AG (ETR:FRA), einem deutschen Unternehmen, das seinen Aktienkurs über fünf Jahre um 102% erhöht hat.
** Langfristige Grundlagen* *
Um die zugrunde liegenden Grundlagen von Fraport zu bewerten, sollten wir ihre Leistung auf längere Sicht untersuchen. Fraport erzielte ein Ergebnis je Aktie (EPS) von 3,0 % pro Jahr über fünf Jahre, während sein Aktienkurs mit einer Rate von 15 % pro Jahr wuchs. Dies deutet darauf hin, dass der Markt eine höhere Meinung über das Geschäft als vor fünf Jahren.
**EPS Growth vs. Aktienkurs Wachstum* *
Interessanterweise ist das EPS-Wachstum von Fraport langsamer als sein Aktienkurswachstum. Dies könnte darauf hindeuten, dass der Markt optimistischer ist über die Zukunftsaussichten des Unternehmens als sein tatsächliches Ergebnis.
**Aktienrückgabe**
In dem Artikel wird auch erwähnt, dass Fraport-Aktionäre über ein Jahr eine Gesamtaktionärsrendite (TSR) von 41 % erhalten haben, was über fünf Jahre besser ist als die jährliche TSR. Dies deutet darauf hin, dass die Stimmung rund um das Unternehmen in letzter Zeit positiv war.
**Risks und Warnzeichen*
Während Fraport auf einer Aufwärtstrajektorie zu sein scheint, ist es wichtig, Risiken und Warnzeichen zu berücksichtigen. Der Artikel erwähnt 1 Warnzeichen für Fraport, was ein potenzielles Anliegen sein könnte.
**Ausschluss* *
Fazit: Die Fraport AG ist ein vielversprechender Bestand, der ihren Aktienkurs über fünf Jahre um 102% erhöht hat. Es ist jedoch wichtig, die potenziellen Risiken und Warnzeichen vor der Entscheidung zu berücksichtigen. Während der Markt eine höhere Meinung über das Geschäft als vor fünf Jahren hat, ist es immer noch möglich, einen Gewinn zu machen, wenn Sie zum richtigen Zeitpunkt kaufen.
**Key Takeaways:**
* Die Fraport AG hat ihren Aktienkurs im Laufe von fünf Jahren um 102% erhöht.
* Das Unternehmen erzielte über fünf Jahre ein deutliches EPS-Wachstum von 3,0% pro Jahr.
* Die Anteilseigner von Fraport erhielten eine Gesamtaktionärsrendite (TSR) von 41 % über ein Jahr, was besser ist als die jährliche TSR über fünf Jahre.
* Fraport hat mehrere Warnzeichen, die ein Anliegen sein könnten.
**Empfehlung:**
Während Fraport ein vielversprechender Bestand scheint, ist es wichtig, die potenziellen Risiken und Warnzeichen vor der Entscheidung zu berücksichtigen. Wenn Sie auf der Suche nach Wachstumsbeständen sind, kann Fraport möglicherweise überlegen sein, aber es ist wichtig, Ihre eigene Forschung zu tun und mit einem Finanzberater zu konsultieren, bevor Sie irgendwelche Investitionsentscheidungen treffen. |
| 30.06.25 08:36:28 |
Some Investors May Be Worried About Fraport's (ETR:FRA) Returns On Capital |
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**Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!**
What trends should we look for it we want to identify stocks that can multiply in value over the long term? Amongst other things, we'll want to see two things; firstly, a growing return on capital employed (ROCE) and secondly, an expansion in the company's amount of capital employed. Put simply, these types of businesses are compounding machines, meaning they are continually reinvesting their earnings at ever-higher rates of return. Although, when we looked at Fraport (ETR:FRA), it didn't seem to tick all of these boxes.
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What Is Return On Capital Employed (ROCE)?
Just to clarify if you're unsure, ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business. Analysts use this formula to calculate it for Fraport:
Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)
0.04 = €702m ÷ (€20b - €2.3b) (Based on the trailing twelve months to March 2025).
Therefore, Fraport has an ROCE of 4.0%. Ultimately, that's a low return and it under-performs the Infrastructure industry average of 10%.
Check out our latest analysis for Fraport XTRA:FRA Return on Capital Employed June 30th 2025
Above you can see how the current ROCE for Fraport compares to its prior returns on capital, but there's only so much you can tell from the past. If you're interested, you can view the analysts predictions in our freeanalyst report for Fraport .
What Can We Tell From Fraport's ROCE Trend?
In terms of Fraport's historical ROCE movements, the trend isn't fantastic. Around five years ago the returns on capital were 5.3%, but since then they've fallen to 4.0%. On the other hand, the company has been employing more capital without a corresponding improvement in sales in the last year, which could suggest these investments are longer term plays. It's worth keeping an eye on the company's earnings from here on to see if these investments do end up contributing to the bottom line.
The Bottom Line On Fraport's ROCE
To conclude, we've found that Fraport is reinvesting in the business, but returns have been falling. Although the market must be expecting these trends to improve because the stock has gained 55% over the last five years. But if the trajectory of these underlying trends continue, we think the likelihood of it being a multi-bagger from here isn't high.
On a separate note, we've found 1 warning sign for Fraport you'll probably want to know about.
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For those who like to invest in solid companies, check out this freelist of companies with solid balance sheets and high returns on equity.
Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This 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.
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| 14.05.25 07:00:47 |
Fraport AG (FPRUF) Q1 2025 Earnings Call Highlights: Passenger Growth and Expansion Amid ... |
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**Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!**
Release Date: May 13, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
Passenger numbers showed a positive trend in April, with a 4.8% year-on-year increase at Frankfurt Airport. Lima Airport outperformed other airports in Q1 due to capacity additions by airlines, with further growth expected. The terminal expansion at Antalya Airport was successfully inaugurated, enhancing its capacity to handle up to 65 million passengers. The new wage agreement provides stability with a duration of 27 months, effective from January 1, 2025. Retail spend per passenger increased, with advertising revenues growing by more than EUR1 million compared to last year.
Negative Points
Total revenues were down by around 2% in Q1 2025, with a negative group result of minus EUR26 million. The financial result was negatively impacted by lower traffic numbers in Antalya and exchange rate-driven deferred tax effects. Operational cash flow decreased to EUR12 million in Q1 due to higher interest payments and concession fees. Net debt increased to more than EUR8.6 billion, reaching the peak for the year. The new labor agreement is expected to cost EUR40 million to EUR50 million this year for Frankfurt operations.
Q & A Highlights
Warning! GuruFocus has detected 6 Warning Sign with FPRUF.
Q: Can you provide more details on the traffic performance at Frankfurt Airport and the factors affecting it? A: The slight reduction in passengers of 0.9% in Q1 was mainly due to the timing of the Easter holidays, which started in April this year, and capacity constraints from Lufthansa. However, April saw a 4.8% increase in traffic, aligning with our expectations. We anticipate further growth over the summer season, targeting up to 64 million passengers in 2025. - Matthias Zieschang, CFO
Q: What is the status of the major expansion programs at your international airports? A: The terminal expansion at Antalya Airport was inaugurated on April 12, 2025, allowing it to handle up to 65 million passengers. The new terminal at Lima Airport is set to open on June 1, 2025, with a soft opening scheduled for this week. Terminal 3 in Frankfurt is progressing well and is expected to open in 2025. - Matthias Zieschang, CFO
Q: How is the new wage agreement expected to impact your financials? A: The new wage agreement, effective January 1, 2025, includes a two-stage wage increase and other benefits, costing approximately EUR40 million to EUR50 million this year for Frankfurt operations. This agreement provides stability until March 2027. - Matthias Zieschang, CFO
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Q: Can you explain the changes in your financial results, particularly regarding EBITDA and EBIT? A: Total revenues were down by 2%, but excluding IFRIC 12 effects, they were up 6%. EBITDA faced a EUR28 million drop due to the absence of COVID-related compensation and a EUR10 million impact from a changed reimbursement system for passenger screening. Adjusted for these, EBITDA was flat compared to last year. EBIT, adjusted for these effects, was up by EUR8 million. - Matthias Zieschang, CFO
Q: What are your expectations for the financial performance and guidance for the rest of the year? A: We expect Frankfurt Airport to grow up to 64 million passengers, with a moderate single-digit percentage increase in EBITDA. The group net result is expected to be flat to down due to extra gains from last year's share disposal in St. Petersburg. No dividend payment is planned for the 2025 financial year. - Matthias Zieschang, CFO
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
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| 07.04.25 04:52:43 |
With A Return On Equity Of 9.7%, Has Fraport AG's (ETR:FRA) Management Done Well? |
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**Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!**
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.
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How Do You Calculate Return On Equity?
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
Does Fraport Have A Good Return On Equity?
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%).XTRA:FRA Return on Equity April 7th 2025
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.
Why You Should Consider Debt When Looking At ROE
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.
Combining Fraport's Debt And Its 9.7% Return On Equity
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.
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Summary
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) simplywallst.com.
This 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.
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| 21.03.25 09:18:07 |
At €58.10, Is It Time To Put Fraport AG (ETR:FRA) On Your Watch List? |
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**Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!**
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.
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What Is Fraport Worth?
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
What does the future of Fraport look like?XTRA:FRA Earnings and Revenue Growth March 21st 2025
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.
What This Means For You
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.
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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) simplywallst.com.
This 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.
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| 19.03.25 07:02:04 |
Fraport AG (FPRUF) (FY 2024) Earnings Call Highlights: Record EBITDA and Strategic Expansion ... |
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**Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!**
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.
Positive Points
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.
Negative Points
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.
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Q & A Highlights
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.
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| 06.03.25 07:56:04 |
State or government account for 31% of Fraport AG's (ETR:FRA) ownership, while private companies account for 24% |
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**Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!**
Key Insights
Significant control over Fraport by state or government implies that the general public has more power to influence management and governance-related decisions 52% of the business is held by the top 2 shareholders Institutions own 24% of Fraport
Every investor in Fraport AG (ETR:FRA) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are state or government with 31% ownership. Put another way, the group faces the maximum upside potential (or downside risk).
Meanwhile, private companies make up 24% of the company’s shareholders.
Let's delve deeper into each type of owner of Fraport, beginning with the chart below.
Check out our latest analysis for Fraport XTRA:FRA Ownership Breakdown March 6th 2025
What Does The Institutional Ownership Tell Us About Fraport?
Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.
Fraport already has institutions on the share registry. Indeed, they own a respectable stake in the company. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Fraport's historic earnings and revenue below, but keep in mind there's always more to the story.XTRA:FRA Earnings and Revenue Growth March 6th 2025
We note that hedge funds don't have a meaningful investment in Fraport. Looking at our data, we can see that the largest shareholder is Land Hessen with 31% of shares outstanding. In comparison, the second and third largest shareholders hold about 21% and 8.4% of the stock.
A more detailed study of the shareholder registry showed us that 2 of the top shareholders have a considerable amount of ownership in the company, via their 52% stake.
While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.
Insider Ownership Of Fraport
The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.
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Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.
Our data cannot confirm that board members are holding shares personally. Not all jurisdictions have the same rules around disclosing insider ownership, and it is possible we have missed something, here. So you can click here learn more about the CEO.
General Public Ownership
The general public-- including retail investors -- own 12% stake in the company, and hence can't easily be ignored. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.
Private Company Ownership
It seems that Private Companies own 24%, of the Fraport stock. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.
Public Company Ownership
Public companies currently own 8.4% of Fraport stock. We can't be certain but it is quite possible this is a strategic stake. The businesses may be similar, or work together.
Next Steps:
I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. To that end, you should be aware of the 1 warning sign we've spotted with Fraport .
If you would prefer discover what analysts are predicting in terms of future growth, do not miss this freereport on analyst forecasts.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This 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.
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| 19.02.25 11:03:22 |
Fraport (ETR:FRA) shareholders have endured a 12% loss from investing in the stock three years ago |
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**Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!**
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).XTRA:FRA Earnings and Revenue Growth February 19th 2025
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 freereport showing consensus forecasts
A Different Perspective
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 freelist 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) simplywallst.com.
This 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.
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| 20.01.25 09:59:25 |
Fraport (ETR:FRA) Will Be Hoping To Turn Its Returns On Capital Around |
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**Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!**
If we want to find a potential multi-bagger, often there are underlying trends that can provide clues. One common approach is to try and find a company with returns on capital employed (ROCE) that are increasing, in conjunction with a growing amount of capital employed. If you see this, it typically means it's a company with a great business model and plenty of profitable reinvestment opportunities. However, after briefly looking over the numbers, we don't think Fraport (ETR:FRA) has the makings of a multi-bagger going forward, but let's have a look at why that may be.
Understanding Return On Capital Employed (ROCE)
Just to clarify if you're unsure, ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business. The formula for this calculation on Fraport is:
Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)
0.042 = €724m ÷ (€20b - €2.3b) (Based on the trailing twelve months to September 2024).
Thus, Fraport has an ROCE of 4.2%. Ultimately, that's a low return and it under-performs the Infrastructure industry average of 12%.
See our latest analysis for Fraport XTRA:FRA Return on Capital Employed January 20th 2025
Above you can see how the current ROCE for Fraport compares to its prior returns on capital, but there's only so much you can tell from the past. If you'd like, you can check out the forecasts from the analysts covering Fraport for free.
What Can We Tell From Fraport's ROCE Trend?
On the surface, the trend of ROCE at Fraport doesn't inspire confidence. Over the last five years, returns on capital have decreased to 4.2% from 6.4% five years ago. Although, given both revenue and the amount of assets employed in the business have increased, it could suggest the company is investing in growth, and the extra capital has led to a short-term reduction in ROCE. If these investments prove successful, this can bode very well for long term stock performance.
In Conclusion...
Even though returns on capital have fallen in the short term, we find it promising that revenue and capital employed have both increased for Fraport. These growth trends haven't led to growth returns though, since the stock has fallen 18% over the last five years. So we think it'd be worthwhile to look further into this stock given the trends look encouraging.
One more thing, we've spotted 1 warning sign facing Fraport that you might find interesting.
While Fraport may not currently earn the highest returns, we've compiled a list of companies that currently earn more than 25% return on equity. Check out this freelist here.
Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This 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.
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