Corporación América Airports S.A. (CAAP): A Bull Case Theory 

We came across a bullish thesis on Corporación América Airports S.A. on Value investing subreddit by Possible_Crow606. In this article, we will summarize the bulls’ thesis on CAAP. Corporación América Airports S.A.’s share was trading at $19.13 as of September 24th. CAAP’s trailing and forward P/E were 20.35 and 4.89 respectively according to Yahoo Finance.

Corporación América Airports (NYSE: CAAP) is one of the world’s largest airport operators, managing 53 airports with a significant concentration in South America, primarily Argentina. Airports are inherently high-quality assets, operating as local monopolies with substantial regulatory barriers, built-in price escalators in government contracts, and additional revenue from leasing commercial space—characteristics that allow for robust profitability, often exceeding 50% EBITDA margins.

CAAP has benefited from a strong rebound in air travel, with total passenger traffic across its airports growing 13.7% last quarter, reflecting both domestic and international demand. Argentina’s recent pro-business policies under President Javier Milei, who previously served as CAAP’s Chief Economist, have further strengthened the company’s outlook. These measures include extending airport leases by ten years at no extra cost and encouraging competition from international and low-cost carriers, which is expected to drive higher passenger volumes and revenue growth.

CAAP currently generates $641 million in LTM EBITDA against an enterprise value of $4.1 billion, implying an attractive EV/EBITDA multiple of 6.4x. Levered free cash flow is strong, around $600 million, providing flexibility to reinvest in airport expansion, pursue new acquisitions, or return capital to shareholders through buybacks and dividends.

With passenger traffic growth likely to continue alongside Argentina’s economic recovery, CAAP could achieve annual revenue growth of 15%+ over the next few years, accompanied by margin expansion. The combination of undervaluation, high-quality assets, strong cash flow, and multiple growth catalysts positions CAAP as a compelling international investment opportunity with significant upside potential for both equity and credit investors.

Previously we covered a bullish thesis on Grupo Aeroportuario del Centro Norte, S.A.B. de C.V. (OMAB) by Chit Chat Stocks in May 2025, which highlighted strong passenger traffic, revenue growth, and high operating margins. The company’s stock price has appreciated approximately by 17.36% since our coverage. The thesis still stands as OMAB remains a high-quality airport operator. Possible_Crow606 shares a similar view but emphasizes CAAP’s scale, Argentina’s reforms, and strong free cash flow.

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Disclosure: None.