Corporacion America Airports S.A. (NYSE: CAAP)

Sector: Industrials Industry: Airports & Air Services CIK: 0001717393
Market Cap 4.65 Bn
P/B 3.22
P/E 25.43
P/S 2.42
ROIC (Qtr) 13.50
Div Yield % 0.00
Rev 1y % (Qtr) 14.18
Total Debt (Qtr) 1.13 Bn
Debt/Equity (Qtr) 0.78
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About

Corporación América Airports S.A. (CAAP), a leading global airport concession operator, operates in the aviation industry across Latin America, Europe, and Eurasia. The company manages 52 airports, with a significant presence in Argentina where it operates 37 of the 56 airports in the country's national airport system. CAAP's main business activities include airport concessions, aeronautical services, commercial activities, and construction services. The company generates revenue through various channels, including aeronautical revenue, commercial...

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Investment thesis

Bull case

  • Healthy cash reserves of 540.39M provide 5.10x coverage of short-term debt 106.05M, demonstrating strong liquidity position and minimal refinancing risk.
  • Operating cash flow of 369.98M provides exceptional 35.26x coverage of minority interest expenses 10.49M, showing strong core operations.
  • Operating cash flow of 369.98M provides strong 385.80x coverage of stock compensation 959000, indicating sustainable incentive practices.
  • Robust free cash flow of 354.38M exceeds capital expenditure of 15.60M by 22.72x, indicating strong organic growth funding capability.
  • Strong operating cash flow of 369.98M provides 1.67x coverage of SG&A expenses 221.99M, showing efficient operational cost management.

Bear case

  • Operating cash flow of 369.98M barely covers its investment activities of (63.57M), with a coverage ratio of -5.82, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Cash reserves of 540.39M provide limited coverage of acquisition spending of (452000), which is -1195.55x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • High receivables of 299.38M relative to inventory of 15.20M (19.69 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.
  • Free cash flow of 354.38M represents just -2.98x of debt issuance (119.09M), suggesting concerning reliance on leverage rather than internal cash generation for growth.
  • Operating cash flow of 369.98M barely covers operating expenses of (35.37M) with a -10.46 ratio, suggesting thin operational efficiency margins and limited flexibility.

Segments [axis] Breakdown of Revenue (2024)

Segments [axis] Breakdown of Revenue (2024)

Peer comparison

Companies in the Airports & Air Services
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 JOBY Joby Aviation, Inc. 7.86 Bn -7.46 347.21 0.04 Bn
2 CAAP Corporacion America Airports S.A. 4.65 Bn 25.43 2.42 1.13 Bn
3 UP Wheels Up Experience Inc. 0.49 Bn -1.39 0.65 0.47 Bn
4 ASLE AerSale Corp 0.33 Bn 56.62 0.98 0.16 Bn
5 SOAR Volato Group, Inc. 0.00 Bn 0.03 0.01 0.00 Bn
6 OMAB Central North Airport Group 0.00 Bn 0.00 0.00 -
7 PAC Pacific Airport Group 0.00 Bn 0.00 0.00 -
8 ASR Southeast Airport Group 0.00 Bn 0.00 0.00 -

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.24 1.49
EV to Cash from Ops. EV/CFO 14.34 28.33
EV to Debt EV to Debt 4.69 39.50
EV to EBIT EV/EBIT 12.03 6.02
EV to EBITDA EV/EBITDA 7.58 1.99
EV to Free Cash Flow [EV/FCF] EV/FCF 14.97 -14.29
EV to Market Cap EV to Market Cap 1.14 -3.17
EV to Revenue EV/Rev 2.76 61.98
Price to Book Value [P/B] P/B 3.22 2.31
Price to Earnings [P/E] P/E 25.43 14.65
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.00 0.00
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 0.00
Dividend per Basic Share Div per Share (Qtr) 0.00 0.00
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 0.00
Interest Coverage Int. cover (Qtr) 2.79 0.91
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -70.83 -106.28
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 5.77 -10.09
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.00
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -52.81 141.36
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 2.93 30.70
EBIT Growth (1y) % EBIT 1y % (Qtr) -51.95 13.57
EBT Growth (1y) % EBT 1y % (Qtr) -39.81 40.13
EPS Growth (1y) % EPS 1y % (Qtr) -41.15 216.02
FCF Growth (1y) % FCF 1y % (Qtr) -10.42 5.95
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 42.25 315.30
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.45 1.12
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.00
Cash Ratio Cash Ratio (Qtr) 0.90 3.00
Current Ratio Curr Ratio (Qtr) 1.53 4.21
Debt to Equity Ratio Debt/Equity (Qtr) 0.78 0.14
Interest Cover Ratio Int Coverage (Qtr) 2.79 0.91
Times Interest Earned Times Interest Earned (Qtr) 2.79 0.91
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 34.40 -888.16
EBIT Margin % EBIT Margin % (Qtr) 22.91 -927.43
EBT Margin % EBT Margin % (Qtr) 14.69 -933.83
Gross Margin % Gross Margin % (Qtr) 34.60 29.60
Net Profit Margin % Net Margin % (Qtr) 9.50 -934.96