Is this new platform layout accessible for everyone on the old research platform ? It's asking me to enroll again ? It lets me into the old platform no problem though.
Now this is something worth looking at. A few hot takes: 1. I wish airports didn't carry so much debt. I can forsee some lower quality airports becoming zombie companies 2. Post corona-margins might be lower for a while. - Permanent shifts in consumer behaviour are still not clear (business travel) - lower airline profitability might trickle down to the airports (like a tenant/landlord relationship). 3. Advances in aviation tech will favour airports that benefit from long haul point - point routes. Hub and spoke model is becoming outdated. Will likely impact growth rates for certain airports. 4. Main focus should be on how robust cashflow generation is. (seems volatile) 5. Interest rates need to stay low for this investment to work out. Impacts profitability, growth opportunities, valuation.
One thing is for sure interest rates will not go up central banks simply cannot raise interest rates it would simply destroy economies and the stock markets if anything interest rates may even go negative.
I recently did some analysis on the Latin America airports and decided to hold off for now, but definitely intriguing wide moat companies that'll keep watching. Definitely adding Fraport to the list as well. I hope you'll share your analysis on some of the Latin American airports once completed. Thanks as always Sven! Your in depth research is second to none on TH-cam.
"AENA" it's the company that manage all the airports in Spain (it used to be a public company). If you do an analysis about the sector it would be interesting to analyze it too :)
I'd be interested to see a stock analysis of Airbus as they too have a strong moat. On a separate note, would also be interested to see how you would go about creating a revenue model for your DCF
Auckland international airport. Check this one. Only way in and out of New Zealand, and not many other places to build a big airport near all the big cities in NZ.
dont waste time on auckland airport， it is very badly managed the company did huge placement and very big duliution in very low price ，and they are not international transition airport
New Zealand airport has the best moat. There’s no space to put a competing airport. And Australia is a growing country that seem to love travelling to New Zealand
I didn't know owning airports was a thing, I just thought they were all owned by the local governments. This was a really interesting idea, but I'm not sure if I would invest in any. Great topic.
Hi Sven thank you for your report. From the list of airports I saw in your video I did not catch AENA, which is a Spanish airport I am currently invested in. If you have not spotted yet, I suggest you to take a look at this Spanish airport. I have also in my radar Fraport but I am stil hesitating to buy it. Question: can you tell me which broker do you use ? I am asking this because I have heard from your video about Vienna Airport but my broker (Fineco - I am an Italian investor) did not offer me the trade on this stock, so could you please indicate me which broker you use in order to allow me an even bigger availability of stocks to buy ? thank you if you like to respond to me. ciao
@@Value-Investing thank you Sven for your reply. I look forward both of your videos (AENA + broker). In the meanwhile I just want to share with you my thought (no need to reply on this): because many travel and leisure stocks dropped becuase of the Covid situation, I am scrutinizing a lot of travel and leisure stokcs (among which AENA and Fraport and others too). My reasoning is this: sooner or later Covid will pass and travel and leisure industry will get back. This could not be a 10 bagger bet but with a 100% profit I will be also satisfied too. ciao e grazie !
Hm .. if climate change is real, we might see stagnation in the aviation industry. On top corona teached us you absolutely do not need to travel in order to have a 2 hour meeting (just do video conferences). I'd expect business travel to stagnate or even shrink, tourism might as well refocus on non-flight locatioins because of co2 emission shaming. Any thoughts ?
The CO2 thing and associated flight shaming might be a thing to worry about. But in the long term? I do not think so. There will be a technical solution to C02. Whether it be extraction directly from the air, electric planes, or hydrogen-powered engines, I do not know. But it will come.
Great video on how to benefit from the aviation industry without investing directly in airlines. Currently invested in Raytheon Technologies, an aerospace supplier, also have a huge market share in defence industry so not reliant on just the commercial aerospace. Thanks Sven!
read ur analysis. gonna buy some of ARRPY. all it needs to do is go back to pre pandemic levels and you double your money. seems like a relatively safe bet. can't see it losing much more value.
Dear Sven have you though about a possible new era that may be many small airports in order to avoid big ones due to convid and due to more flying. However, for sure I agree with your view. However, I believe we are going to a new model in airports. (Many more and smaller ones)
Thank you, great point indeed. And also imagine the future of Paris airports if Air France go away. Or Frankfurt airport in case of Lufthansa bankruptcy
@@max77vvxf5yvh - as Kriztian said, if one airline folds, another will take its place. I read that airlines was/is flying empty planes to and from airports simply to keep their slots active and open. Otherwise there is a real risk that the airport will assign that slot to another airline and then it could take months to get it back, if ever.
Sven This is a very compelling thesis, seems to me a primary risk is how the emerging economies will do post covid, if their currencies crash that could remove hundreds of millions of the newer travelers that have emerged in places like India. As always its risk versus reward :) Sven any chance you will do a video telling us how your investments worked out in the first half of 2020? Thanks Sven great content.
I am a long-term investor, I look at what will the world look like in 2030. - so corona is only about surviving and 6 months mean nothing to me as for performance:-) Ask me how I did over the last two decades and then the comparisons become really irrelevant:-)
@@Value-Investing Fraport has reported in march a cash position of almost 1 billion. How much of the stockprice is this? Can someone calculate this for me? Thanks steve
Thanks for the video Sven! I just invested heavily into this airport instead of DAL because of your video. Also good to support my German neighbours in these times 😁
Does it matter though if the stock is highly shorted? I just recently saw a bloomberg (i think it was bloomberg) interview where it showed that Fraport was shorted 40%?!? Can that be right? And if so what does it say? Thanks Carl for the videos. Im actually from Austria and do some business in Maribor. Maybe we can meet sometime when the current situation allows it. :)
Hi Sven. Many thanks for sharing your ideas. I did my own analysis regarding the Fraport stock and as you said, the free cash flow is good and the value of this company looks under estimated but I fouund that the working capital is always negative. Honesly I do not understand how a company like this one can have a negative value. Does not it worry you? Thanks again for your studies. Davide
Aren't there more regulatory risks than just the concessions? For example, in the Netherlands Schiphol isn't allowed to grow its traffic due to environmental concerns and noise complaints from residents in the area. There's even plans to shrink the traffic in the future.
You should do a video on how to invest in Europe when you live in America\Canada and vice versa. I can only invest in those compagnies via the OTC|Pinx market I think.
Italy has a strong rail company Trenitalia but it's state owned :-/ I would be indeed interested to get exposure in rail, considering also vast high-speed connection accros Europe and being much more environmental friendly than plane
Hi Sven, I'm pretty ignorant about the topic.. Anyway, any thoughts about the Mexican operators (Grupo Aeroportuario Centro Notre, G.A. del Pacifico, G.A. del Sureste)??
I own zürich airport as it is a monopoly. But i have learnt that pricing power is there but limited by law concerning passenger fees. Its a differnt story with shop rent, parking house rent... there they use pricing power af full exted
Moat is there for sure. How business and other travelling will change permanently is open question. Possibly business will take bigher hit than vacations. Small position for starter might be good idea.
Hi Sven, you may want to look at Spanish Aena in your research platform. I think they own their airports forever. Pandemics usually last 2 years. Quite hard to find an airport that can clearly last till the end 2021 without more funding. I would also be careful of airports with a lot of revenue from retail (rent) - if we are talking about running at a reduced capacity just to breakeven, this will probably be zero till the crowds return (not worth renting/operating a shop at reduced capacity).
good analysis. AENA, Ferrovial and Vinci are typical Utilities favorites of mine
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BTW, have a look too at ACCIONA, it a utilities contractor / installer, usually well diversified and globalized and it suffers penalty of being in spain in valuation so you may find some value (usually no huge multiplier but safe and reliable, like REE, but good to have for shopping list).
Zürich airport is partly owned by zürich.... it has a very strong balance sheet. It is the best european airport and winning these awards regulary. The problem for you: 35 percent of withhold tax on dividends that you can reclaim.... but you have a lot of work as you have to hand in a form and most investors wont do that
Congrats, great analysis Sven. I m a proud holder of 50 Fraport shares 😅 hope will go under 30 till the end of the year to buy more. It's a fantastic business. no dividends this year but it's understandable with the current situation. I would be curious about what it's your opinion about the Hungarian WizzAir. seems to be a corona winner.
The issue with Farport is that Frankfurt is a hub for further transit whether passengers or cargo. With Lufthansa very dodgy atm the other rival area hubs Paris, London and Amsterdam might benefit. I live in Berlin and fly 6-8 times a year to asia (nevermind around Europe regularly) but need to fly via one of these four hubs. All equal with transit time major deciding factor. I find Amsterdam the best airport but KLM/Air France less so. Heathrow terrible. Frankfurt and Lufthansa the best experience overall and in terms of value for money. But who knows if this will continue as lufthansa definitely don't seem to have a profitable business structure.
When I want to feel better I look at Dr Sven's videos! And I learned something new, never would have thought about airports as investments in spite of living near one!
Hi Sven, thank you for the video, when investing in industries that got beaten during the epidemic such as REIT, Airport, Travel my concerns are that i will see the ROI only after 3 - 5 years, Because the companies that needed bail-outs will pay first the debt to thier loaners, what are your thoughts ? are my concerns correct ?
🐲 Warren Buffett sees a lot of risk in Airline-Companies. Flughafen Wien AG: The challenge is it is very close to Vienna city and the new planned runway is controversially discussed. The Bratislava Airport is very close to Vienna. IMO the better solution than a new runway would be a good high-speed train connection between Vienna and Bratislava. .
Agree with the analysis, BUT i wish FPRUF had normal trading volumes - avg. volume per day is 298 - shockingly low! (most days it has 0 volume per yahoo finance)
Is this new platform layout accessible for everyone on the old research platform ? It's asking me to enroll again ? It lets me into the old platform no problem though.
Once you built it, it will make money.... maybe a bit to easy! Most American Airports for example suck because they didn’t do the investments needed to modernise..
How different a story do you think beijing capitial airport would have? The only difference would be DAXING airport but the moats are generally the same?
@@Value-Investing Just curious, would you consider state owned companies prioritizing national progress a problem only for China companies? Because Gazprom is also largely stateowned.
Invest with Sven Carlin, Ph.D. If you look at a cashflow statement, the first line in calculating operating cashflow is net income. Net income already factors in interest expense.
Hey Sven, Thanks a lot for another great video! I live in US and I don't see "ETR: FRA" as an option to invest but I do see "Fraport AG Frankfurt Airport Services Worldwide FPRUF" as an option. Do you think that investing using OTC markets is equal to investing in the real stock?
The ticker you want to buy for Fraport in the USA is FPRUY. It is a 2:1 ADR (2 FPRUY = 1 Fraport share). Check out this website from JPM, it lists all foreign stocks trading in the USA: www.adr.com/drprofile/35546M108 Foreign companies that are not listed on the NYSE are traded as ADRs OTC. ADRs emulate the underlying stock 100% (including dividends). Hope that helps!
@@Value-Investing down due to unafforable payments and less competitors in airlines soon. Also, those rentals shop might cant afford to rent in near future. Atleast until everyone is confidence to fly again
when you have time take a look at ENAV spa, it is not an airport but it controls Italian air travel, it has a monopoly in Italy where there is the highest annual growth rate of flights in Europe. ciao!
Good video Sven Airports are indeed interesting to buy considering the moat it has and the probale future growth in air traffic. Also intersting understand how air routes work Transit flights for an airport are big business Schiphol(Amsterdam Airport) makes alot of money trough this, but those transit flight can be taken way by other airports like Brussels, London or Paris etc etc but I think the cake is big enough for everybody thou. So eager to hear more from you about this keep it Sven!!!!!!!!
Regardingthe risk of pandemics, if you ask for example a veterinarian, they will tell you that this kind of situation is plenty more likely today than it was in 1918, because of industrial practices concerning livestock and domestic animals. We will just need to learn how to improve our society to react better and be much more resilient to pandemics. For example, in 2020 researchers managed to train dogs in the span of weeks to reliably detect covid infected persons by smell. This technology can enable airports to restart travel much faster in the event of a global epidemic.
I like to buy the Airport Zurich share (CH) but due to a conflict between the EU and CH I'm not able to buy via my trading platform in Germany. The additional costs for buying from a swiss broker are to high.
Seems to me that airports will be second, maybe third, in line of creditors for all the airlines that will soon file bankruptcy. It's a wait and see industry niche! IMO
I agree its a wait and see for me as well the economic effects of covid are not being felt in full yet its like watching film nuclear bomb most of the damage actually comes from the shock wave that follows. People are looking to old metrics as a guide to the future but this is the first time we have had a global pandemic in the age of global travel no one knows how bad the economic impacts and mindset impacts will be.
It is commendable how much research you put in. What do you feel will be the next big thing after tech/e commerce/cloud? Do you see potential in robotics/AI and genomics? Or another area?
Here is the written analysis with links: svencarlin.com/airport-stocks-list/
Thank you.
Is this new platform layout accessible for everyone on the old research platform ? It's asking me to enroll again ? It lets me into the old platform no problem though.
What do you think about ASR airport to invest?
@Christpher / that is just the newsletter
Legend
Now this is something worth looking at.
A few hot takes:
1. I wish airports didn't carry so much debt. I can forsee some lower quality airports becoming zombie companies
2. Post corona-margins might be lower for a while.
- Permanent shifts in consumer behaviour are still not clear (business travel)
- lower airline profitability might trickle down to the airports (like a tenant/landlord relationship).
3. Advances in aviation tech will favour airports that benefit from long haul point - point routes. Hub and spoke model is becoming outdated. Will likely impact growth rates for certain airports.
4. Main focus should be on how robust cashflow generation is. (seems volatile)
5. Interest rates need to stay low for this investment to work out. Impacts profitability, growth opportunities, valuation.
if already heavy on debt, isn't corona going to further get them into debt for the next couple of years ??
good points!
One thing is for sure interest rates will not go up central banks simply cannot raise interest rates it would simply destroy economies and the stock markets if anything interest rates may even go negative.
So true ! In the age of Amazon they are the only malls people necessarily have to go to.
Nice video Sven.
I recently did some analysis on the Latin America airports and decided to hold off for now, but definitely intriguing wide moat companies that'll keep watching. Definitely adding Fraport to the list as well. I hope you'll share your analysis on some of the Latin American airports once completed. Thanks as always Sven! Your in depth research is second to none on TH-cam.
1:17 "Flughafen Wien" - Damn, your german is on point :)
danke:-)
Very interesting analysis I need to take deeper look at airports. Also waiting for you to get RHIM on your Austrian stock list :)
"AENA" it's the company that manage all the airports in Spain (it used to be a public company). If you do an analysis about the sector it would be interesting to analyze it too :)
will write an article for sure!
Fraport and Aena very much the same problems but interesting longterm!
@@Value-Investing Thank you for the answer and all the great content you upload to TH-cam Sven!
@@alberto_7683 It will be interesting as I invest and work at that company.
I keep coming across old videos from you Sven and the common trend seems to be "Yeah, he was right about that one too."
Well done! :)
hahahaha, that is great to hear!!!!
I'd be interested to see a stock analysis of Airbus as they too have a strong moat. On a separate note, would also be interested to see how you would go about creating a revenue model for your DCF
I find your videos really helpful btw!
Auckland international airport. Check this one. Only way in and out of New Zealand, and not many other places to build a big airport near all the big cities in NZ.
dont waste time on auckland airport， it is very badly managed the company did huge placement and very big duliution in very low price ，and they are not international transition airport
@@siamshen which other airports are on your mind to be looked at?
New Zealand airport has the best moat. There’s no space to put a competing airport. And Australia is a growing country that seem to love travelling to New Zealand
That's why it's still expensive af
will make an analysis
Great job!
I didn't know owning airports was a thing, I just thought they were all owned by the local governments. This was a really interesting idea, but I'm not sure if I would invest in any. Great topic.
I looked into the UK airports and they are not publicly traded so I guess its on a country by country basis
What is wring with Fraport now? Price now is the same it was when covid hit.
overinvested likely in a bad period - I am looking at their huge invesment here in the local airport but things not picking up.
@@Value-Investing thanks for answer Sven! And thanks for your work! :)
I like your approach on stocks very different than everyone out there! Good work!
thanks!
Hi Sven thank you for your report. From the list of airports I saw in your video I did not catch AENA, which is a Spanish airport I am currently invested in. If you have not spotted yet, I suggest you to take a look at this Spanish airport. I have also in my radar Fraport but I am stil hesitating to buy it.
Question: can you tell me which broker do you use ? I am asking this because I have heard from your video about Vienna Airport but my broker (Fineco - I am an Italian investor) did not offer me the trade on this stock, so could you please indicate me which broker you use in order to allow me an even bigger availability of stocks to buy ? thank you if you like to respond to me. ciao
will do AENA - will also make a video about brokers - Fineco is complex from what I hear:-)
@@Value-Investing thank you Sven for your reply. I look forward both of your videos (AENA + broker). In the meanwhile I just want to share with you my thought (no need to reply on this): because many travel and leisure stocks dropped becuase of the Covid situation, I am scrutinizing a lot of travel and leisure stokcs (among which AENA and Fraport and others too). My reasoning is this: sooner or later Covid will pass and travel and leisure industry will get back. This could not be a 10 bagger bet but with a 100% profit I will be also satisfied too. ciao e grazie !
Hm .. if climate change is real, we might see stagnation in the aviation industry. On top corona teached us you absolutely do not need to travel in order to have a 2 hour meeting (just do video conferences). I'd expect business travel to stagnate or even shrink, tourism might as well refocus on non-flight locatioins because of co2 emission shaming. Any thoughts ?
The CO2 thing and associated flight shaming might be a thing to worry about. But in the long term? I do not think so. There will be a technical solution to C02. Whether it be extraction directly from the air, electric planes, or hydrogen-powered engines, I do not know. But it will come.
I'm allready invested since march :) great video as allways
Did you do a fair value assesment?
hi there...and which broker offers vienna airport stock? thx
What about negative free cash flow of Fraport with such a big debt?
Did you watch the video until the end?
FYI, interest expense is already included in the operating cash flow, which you deducted in the Fraport example. Keep up the good work, as always! =)
thanks!
Great video on how to benefit from the aviation industry without investing directly in airlines. Currently invested in Raytheon Technologies, an aerospace supplier, also have a huge market share in defence industry so not reliant on just the commercial aerospace. Thanks Sven!
I got Fraport last month, also I got an Australian airport just in case. Thanks Sven!
read ur analysis. gonna buy some of ARRPY. all it needs to do is go back to pre pandemic levels and you double your money. seems like a relatively safe bet. can't see it losing much more value.
Dear Sven have you though about a possible new era that may be many small airports in order to avoid big ones due to convid and due to more flying. However, for sure I agree with your view. However, I believe we are going to a new model in airports. (Many more and smaller ones)
well, always going for bigger it seems the plans out there.
Thank you, great point indeed. And also imagine the future of Paris airports if Air France go away. Or Frankfurt airport in case of Lufthansa bankruptcy
Almost certainly nothing would happen. Years ago in Budapest the Hungarian Arline Malev went bankrupt someone takes over and things continue.
@@max77vvxf5yvh - as Kriztian said, if one airline folds, another will take its place. I read that airlines was/is flying empty planes to and from airports simply to keep their slots active and open. Otherwise there is a real risk that the airport will assign that slot to another airline and then it could take months to get it back, if ever.
Sven This is a very compelling thesis, seems to me a primary risk is how the emerging economies will do post covid, if their currencies crash that could remove hundreds of millions of the newer travelers that have emerged in places like India.
As always its risk versus reward :)
Sven any chance you will do a video telling us how your investments worked out in the first half of 2020?
Thanks Sven great content.
I am a long-term investor, I look at what will the world look like in 2030. - so corona is only about surviving and 6 months mean nothing to me as for performance:-) Ask me how I did over the last two decades and then the comparisons become really irrelevant:-)
is there an ETF that encompasses this? (i apologize if the references it i haven't finished the video yet)
don't think so
Fraport stock is negotiable in USA?
Interesting point about their debt and inflation Sven, along with cheap financing.
In Australia, Sydney Airport is good buy but there is new airport being built. In this situation, do you see any risk?
will analyse
I work for Brussels Airport. I will start buying as soon as I see the flights are picking up.
let me know when it happens:-) My email is investwithsven@gmail.com
@@Value-Investing Fraport has reported in march a cash position of almost 1 billion. How much of the stockprice is this? Can someone calculate this for me? Thanks steve
Thanks for the video Sven! I just invested heavily into this airport instead of DAL because of your video. Also good to support my German neighbours in these times 😁
May I ask you also to check tickets industry? For example Amadeus IT. Thank you Sven for sharing your research!
Does it matter though if the stock is highly shorted? I just recently saw a bloomberg (i think it was bloomberg) interview where it showed that Fraport was shorted 40%?!? Can that be right? And if so what does it say? Thanks Carl for the videos. Im actually from Austria and do some business in Maribor. Maybe we can meet sometime when the current situation allows it. :)
don't know how those info providers calculate the short exposure :-( if you are close to Bled, let me know.
Hi Sven. Many thanks for sharing your ideas. I did my own analysis regarding the Fraport stock and as you said, the free cash flow is good and the value of this company looks under estimated but I fouund that the working capital is always negative. Honesly I do not understand how a company like this one can have a negative value. Does not it worry you?
Thanks again for your studies.
Davide
I don't think it is that important within such a business model, plus it is a seasonal situation too so you have to see when are you looking at it.
Aren't there more regulatory risks than just the concessions? For example, in the Netherlands Schiphol isn't allowed to grow its traffic due to environmental concerns and noise complaints from residents in the area. There's even plans to shrink the traffic in the future.
yes but they own also the other airports around, so they will find a way, in the mean-time you are paying 8 EUR per hour parking or even 12
@@Value-Investing Sure, but if governments become more environmentally conscious, wouldn't you expect more restrictions on flights to emerge?
Where do you find the statement of 15:52?
You should do a video on how to invest in Europe when you live in America\Canada and vice versa. I can only invest in those compagnies via the OTC|Pinx market I think.
it is about finding an international broker
I like airport exposure but I believe in europe Rail, especially overnight trains will see a new interest. Any Idea how to get exposure?
Italy has a strong rail company Trenitalia but it's state owned :-/ I would be indeed interested to get exposure in rail, considering also vast high-speed connection accros Europe and being much more environmental friendly than plane
Until plane use biofuels
Forget it. The whole sector is full of gov. owned and highly subsidized train companies. You could perhaps buy stocks from a train manufacturer.
Check byd and there Traunstein and railways
Canadian railway long chart Looks interesting to me for sure!
Love your channel for the market insights and humour... 2:03 world going to end twice 😂
Hi Sven, I'm pretty ignorant about the topic.. Anyway, any thoughts about the Mexican operators (Grupo Aeroportuario Centro Notre, G.A. del Pacifico, G.A. del Sureste)??
will analyse, have some data already but haven't written it up!
@@Value-Investing ;)
I own zürich airport as it is a monopoly. But i have learnt that pricing power is there but limited by law concerning passenger fees. Its a differnt story with shop rent, parking house rent... there they use pricing power af full exted
yes, it is 50 50 so still interesting!
Moat is there for sure. How business and other travelling will change permanently is open question. Possibly business will take bigher hit than vacations. Small position for starter might be good idea.
Great video & completely thought outside the box with this video. Given me something to think about.
thanks
Hi Sven, you may want to look at Spanish Aena in your research platform. I think they own their airports forever.
Pandemics usually last 2 years. Quite hard to find an airport that can clearly last till the end 2021 without more funding. I would also be careful of airports with a lot of revenue from retail (rent) - if we are talking about running at a reduced capacity just to breakeven, this will probably be zero till the crowds return (not worth renting/operating a shop at reduced capacity).
you have the article on my blog:-)
@@Value-Investing Thanks! AENA & Paris look interesting....
Ferrovial has it all, heathrow & toll roads in NA, what else ?
then it is all about the price that fits you
good analysis. AENA, Ferrovial and Vinci are typical Utilities favorites of mine
BTW, have a look too at ACCIONA, it a utilities contractor / installer, usually well diversified and globalized and it suffers penalty of being in spain in valuation so you may find some value (usually no huge multiplier but safe and reliable, like REE, but good to have for shopping list).
What's your take on Boeing or Airbus?
th-cam.com/video/I9GOoa7IOZE/w-d-xo.html
Dear Sven, Thank you for all the great content! May I ask which tools do you use to screen & research stocks which trade outside the US? Thanks! :)
No screen, just lists
Zürich airport is partly owned by zürich.... it has a very strong balance sheet. It is the best european airport and winning these awards regulary. The problem for you: 35 percent of withhold tax on dividends that you can reclaim.... but you have a lot of work as you have to hand in a form and most investors wont do that
thanks for sharing this:-)
Sven, you should include Sats Ltd (S58) from SGX into your airport list haha. Seems to have a great moat and strong branding in Singapore.
will check it!
One of the best ideas around! Thanks.
Congrats, great analysis Sven. I m a proud holder of 50 Fraport shares 😅 hope will go under 30 till the end of the year to buy more. It's a fantastic business. no dividends this year but it's understandable with the current situation. I would be curious about what it's your opinion about the Hungarian WizzAir. seems to be a corona winner.
no interest in any of the airlines!
The issue with Farport is that Frankfurt is a hub for further transit whether passengers or cargo. With Lufthansa very dodgy atm the other rival area hubs Paris, London and Amsterdam might benefit.
I live in Berlin and fly 6-8 times a year to asia (nevermind around Europe regularly) but need to fly via one of these four hubs. All equal with transit time major deciding factor.
I find Amsterdam the best airport but KLM/Air France less so. Heathrow terrible. Frankfurt and Lufthansa the best experience overall and in terms of value for money. But who knows if this will continue as lufthansa definitely don't seem to have a profitable business structure.
thanks for sharing!
¡Thanks for the content, so useful!
Glad it was helpful!
When I want to feel better I look at Dr Sven's videos! And I learned something new, never would have thought about airports as investments in spite of living near one!
thanks :-)
What do you think about Dufry?
Are you going to look at Sydney Airport (ASX:SYD?)
we will:-)
Hi Sven, thank you for the video, when investing in industries that got beaten during the epidemic such as REIT, Airport, Travel my concerns are that i will see the ROI only after 3 - 5 years, Because the companies that needed bail-outs will pay first the debt to thier loaners, what are your thoughts ? are my concerns correct ?
depends on the balance sheet and available financing
In minute 1:48 I am surprised you listed Ferrovial and not AENA, probably one of the most important companies in Europe
added to the list, omitted it by error:-)
@@Value-Investing many thanks
🐲 Warren Buffett sees a lot of risk in Airline-Companies. Flughafen Wien AG: The challenge is it is very close to Vienna city and the new planned runway is controversially discussed. The Bratislava Airport is very close to Vienna. IMO the better solution than a new runway would be a good high-speed train connection between Vienna and Bratislava.
.
Agree with the analysis, BUT i wish FPRUF had normal trading volumes - avg. volume per day is 298 - shockingly low! (most days it has 0 volume per yahoo finance)
ADRs are not really a good option!
Is this new platform layout accessible for everyone on the old research platform ? It's asking me to enroll again ? It lets me into the old platform no problem though.
that is just the newsletter probably:-)
Hi Sven! Any comments or time on Post NL?
Would love to hear from you
no comments, haven't analysed them
Once you built it, it will make money.... maybe a bit to easy! Most American Airports for example suck because they didn’t do the investments needed to modernise..
I like your coment about parking rates. :)
How different a story do you think beijing capitial airport would have? The only difference would be DAXING airport but the moats are generally the same?
Beijing is government owned and not really pro shareholders :-(
@@Value-Investing
Just curious, would you consider state owned companies prioritizing national progress a problem only for China companies?
Because Gazprom is also largely stateowned.
Hi from Spain, I suggest you look at AENA, it is similar to fraport.
will make an article!
@@Value-Investing Great, Spain usually has lots of tourist and corrupted politicians.
The airport is going to the sky 50% profit! :)
@Sven, do you have any views on EU plan for hydrogen? is it hype-gen or not?
don't know / we will see
I am discovering this video for the first time. ADP Paris looks like it is at a 52 week low.
Can we buy Fraport AG stock in US market? What symbol is it?
only OTC, if you buy that stuff!
Why are you deducting interest expense after maintenance cap ex? Double counting. Operating cashflow is already levered.
nope, interest is counted later:-)
Invest with Sven Carlin, Ph.D. If you look at a cashflow statement, the first line in calculating operating cashflow is net income. Net income already factors in interest expense.
Very interesting Sven, as usual.
Hey Sven,
Thanks a lot for another great video!
I live in US and I don't see "ETR: FRA" as an option to invest but I do see "Fraport AG Frankfurt Airport Services Worldwide FPRUF" as an option. Do you think that investing using OTC markets is equal to investing in the real stock?
The ticker you want to buy for Fraport in the USA is FPRUY. It is a 2:1 ADR (2 FPRUY = 1 Fraport share).
Check out this website from JPM, it lists all foreign stocks trading in the USA: www.adr.com/drprofile/35546M108
Foreign companies that are not listed on the NYSE are traded as ADRs OTC. ADRs emulate the underlying stock 100% (including dividends).
Hope that helps!
ask your broker!
Germany is heavily taxing flights...is possible that flights will be reduced
good for Paris
But airport growth is limited right? Unless they raise money and build a bigger one at the other place
does the parking price go up or down on an airpot? :)
@@Value-Investing down due to unafforable payments and less competitors in airlines soon. Also, those rentals shop might cant afford to rent in near future. Atleast until everyone is confidence to fly again
when you have time take a look at ENAV spa, it is not an airport but it controls Italian air travel, it has a monopoly in Italy where there is the highest annual growth rate of flights in Europe.
ciao!
Did enjoy this Sven. Well dissected
thanks!
Good video Sven Airports are indeed interesting to buy considering the moat it has and the probale future growth in air traffic. Also intersting understand how air routes work Transit flights for an airport are big business Schiphol(Amsterdam Airport) makes alot of money trough this, but those transit flight can be taken way by other airports like Brussels, London or Paris etc etc but I think the cake is big enough for everybody thou. So eager to hear more from you about this keep it Sven!!!!!!!!
but if market growth 5% per year, all win:-) It is also about slots and timing.
Regardingthe risk of pandemics, if you ask for example a veterinarian, they will tell you that this kind of situation is plenty more likely today than it was in 1918, because of industrial practices concerning livestock and domestic animals. We will just need to learn how to improve our society to react better and be much more resilient to pandemics. For example, in 2020 researchers managed to train dogs in the span of weeks to reliably detect covid infected persons by smell. This technology can enable airports to restart travel much faster in the event of a global epidemic.
good points!
I like to buy the Airport Zurich share (CH) but due to a conflict between the EU and CH I'm not able to buy via my trading platform in Germany. The additional costs for buying from a swiss broker are to high.
Evt. Degiro?
Valuable overview!
Great video. I like all your videos and especially the ones like this that are so specific
thanks!
Great analysis. Please do auckland airport analysis because im from nz!
will do!
What do you think about Sydney Airport Sven?
Given Aus is facing a second wave of a shutdown and the political tension in this region
will write it up, maybe a video:-) just did the Mexicans
Seems to me that airports will be second, maybe third, in line of creditors for all the airlines that will soon file bankruptcy. It's a wait and see industry niche! IMO
I agree its a wait and see for me as well the economic effects of covid are not being felt in full yet its like watching film nuclear bomb most of the damage actually comes from the shock wave that follows. People are looking to old metrics as a guide to the future but this is the first time we have had a global pandemic in the age of global travel no one knows how bad the economic impacts and mindset impacts will be.
Please do video on Intel
Great work as always
Great video! How am I able to buy these stocks, which platform do I trade in?
you need a broker!
Great channel Sven!
thanks!
Thanks, very interesting!
First! Good day Sven
Congrats on this great achievement. Your mom must be proud.
Thanks - always good to comment for algo
@@JDYTC She is, I was first! Its great that you can comment while watching the video :) Good day JD
@@Value-Investing Anytime you deserve it - more people need to watch you!
Thank you for the video
Keep up the great Job !
thanks!
Where do you get your financials data from?
Morningstar
Morningstar: Look for a company --> key ratios --> Full Key Ratios Data
Aena should be very nice. As far as i know mallorca and the other Spanish island has only a single airport. Thats a tasty monopoly
that is the deal with airports
It is commendable how much research you put in. What do you feel will be the next big thing after tech/e commerce/cloud? Do you see potential in robotics/AI and genomics? Or another area?
simple areas nobody is looking at, like airports maybe
How do I invest via TSX?
don't know :-(
Thank you!
Why are you saying they have a huge debt? The book value per share is 0,7.
debt is a thing of perspective