Corporación América Airports (CAAP) Lands $400 Million Debt Deal, But Is The Stock Still Undervalued

Corporación América Airports (NYSE:CAAP) is back in focus after subsidiary Aeropuertos Argentina raised US$400 million in new debt that matures in 2036, attracting roughly US$1 billion in investor orders.

Recent price action has been softer, with the share price down 6.68% over the past month and 10.65% year to date. However, Corporación América Airports still shows momentum over longer horizons, with an 11.32% 1-year and very large 5-year total shareholder returns.

Scan how Corporación América Airports stacks up against other infrastructure plays by reviewing the hand picked list of solid balance sheet and fundamentals (25 results) that could handle similar funding cycles and refinancing moves.

For Corporación América Airports, the debt deal looks like a vote of confidence, while the share price has been heading the other way. Are investors reacting to sentiment swings rather than the airport operator's fundamentals?

Most Popular Narrative: 27% Undervalued

On the widely followed narrative, Corporación América Airports screens as undervalued, with a fair value of $32.40 against a last close of $23.74, which puts the focus squarely on how durable its airport concessions and commercial revenues prove to be.

The main thing that has to go right is that the company successfully executes its multi billion dollar capex and concession programs in Argentina, Armenia and Brazil while maintaining balance sheet strength and positive cash generation across subsidiaries.

The current valuation implies the share price does not fully reflect the longer concession lives, rising commercial revenue per passenger and low net leverage, so the stock embeds a discount to these fundamentals.

See why 20 investors see Corporación América Airports as 27% undervalued.

Result: Fair Value of $32.40 (UNDERVALUED)

Still, the narrative on Corporación América Airports can crack if Argentine domestic traffic stays constrained, or if concession terms in key markets are pulled or rewritten.

Find out about the key risks to this Corporación América Airports narrative.

Next Steps

Sentiment in this piece leans positive, so move quickly and stress test the thesis against the raw numbers yourself before views harden. To see the upside investors are focused on, review the 5 key rewards.

Looking for more Corporación América Airports style investment ideas?

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• Target resilient balance sheets and steady fundamentals by running a pass through the list of solid balance sheet and fundamentals (25 results).
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