Auckland International Airport Ltd AIA

Morningstar Rating
A$6.75 −0.03 (0.44%)
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Company Report

Auckland Airport's Redevelopment Should Allow an Uptick in Regulated Pricing

As the primary gateway to New Zealand, Auckland Airport should benefit from rising air travel to the island nation. Auckland Airport is the largest airport in New Zealand, and Auckland is by far New Zealand's most populous city. No other airport in the country is likely to outdo Auckland as an international hub. We expect the airport to capture good medium-term growth from further airline capacity expansion to and from New Zealand. We forecast total passengers handled by Auckland to grow to more than 20% above fiscal 2019 levels over the next decade.

Price vs Fair Value

AIA is trading at a LOCK|$czg@K premium.
Price
A$6.78
Fair Value
X.H
Uncertainty
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1-Star Price
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5-Star Price
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Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Auckland Airport provides exposure to rising incomes in the region, and population growth in New Zealand.

Bears

A slowdown in the global economy, a deterioration in international relations, or climate challenges could affect tourist inflow to New Zealand, limiting passenger fees and retail spending at the airport.

Trading Information

Previous Close Price
A$6.78
Day Range
A$6.70–6.79
52-Week Range
A$6.54–7.75
Bid/Ask
A$6.74 / A$6.75
Shares Outstanding
1.70B
Market Cap
A$11.47B
Volume/Avg
149,006 / 609,458

Key Statistics

Price/Earnings (Normalized)
44.23
Price/Sales
13.79
Dividend Yield (Trailing)
1.75%
Dividend Yield (Forward)
1.75%
Dividend Payment Schedule
Apr, Oct
Total Yield
1.75%

Company Profile

Auckland Airport is New Zealand's largest airport, handling about 75% of the country’s international arrivals and departures. It owns over 1,500 hectares of land, and hosts unregulated ancillary commercial services, including retail and duty-free, car parking, hotels, warehouses, and offices. Substantial development opportunities are set to materially expand capacity over the next decade. The airport also has a 25% stake in the small, but fast-growing Queenstown airport on New Zealand’s South Island.
Sector
Industrials
Industry
Airports & Air Services
Stock Style Box
Mid Core
Total Number of Employees
300

Competitors

Valuation

Metric
AIA
AIR
QAN
Price/Earnings (Normalized)
44.2335.979.14
Price/Book Value
1.290.799.05
Price/Sales
13.790.190.54
Price/Cash Flow
26.451.633.51
Price/Earnings
AIA
AIR
QAN

Financial Strength

Metric
AIA
AIR
QAN
Quick Ratio
0.240.350.37
Current Ratio
0.340.470.43
Interest Coverage
5.43−1.784.37
Quick Ratio
AIA
AIR
QAN

Profitability

Metric
AIA
AIR
QAN
Return on Assets (Normalized)
2.15%−2.69%5.20%
Return on Equity (Normalized)
2.91%−13.31%106.62%
Return on Invested Capital (Normalized)
2.01%−3.77%11.94%
Return on Assets
AIA
AIR
QAN

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