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

 We came across a bullish thesis on Corporación América Airports S.A. on Monopolistic Investor’s Substack by Antoni Nabzdyk. In this article, we will summarize the bulls’ thesis on CAAP. Corporación América Airports S.A.’s share was trading at $29.12 as of January 28th. CAAP’s trailing and forward P/E were 26.72  and 4.89 respectively according to Yahoo Finance.

Corporación América Airports (CAAP) operates 52 airports across Europe and the Americas, with its largest presence in Argentina, a market that has experienced significant economic instability. The company generates revenue primarily from aeronautical fees tied to aircraft takeoffs and landings, supplemented by commercial operations such as retail, cargo storage, advertising, and leasing space. A unique aspect of CAAP’s business model is its construction service revenue: the company undertakes airport expansions and maintenance under government contracts, recognizing the associated expenditures as intangible assets while retaining operational rights.

CAAP operates major airports such as Brazil’s third-largest airport, Uruguay’s Carrasco and Punta del Este airports, and the Galapagos, as well as Romania’s only commercial airports, giving it strategic footholds in both high-traffic and niche locations. Its customer base is diversified, including legacy carriers like LATAM and Aerolíneas Argentinas, alongside smaller regional and low-cost airlines, though passenger traffic and revenue remain unpredictable due to the inherent volatility of air travel. Despite a healthy gross margin of 34.7% and net margin of 10.3%, CAAP exhibits weak competitive moats, scoring only 0.4/10 in durability and asset profitability, and its financial quality is moderate at 4/10, reflecting declining efficiency and capital returns.

Operational challenges are noted at larger airports, while smaller facilities perform well, suggesting management focus could improve outcomes. While a conservative DCF model assigns a fair value of $56.21 per share—implying 212% upside—the company’s high debt load, capital intensity, and exposure to Argentina’s macroeconomic turmoil create substantial risk. Overall, CAAP presents a high-risk, potentially high-reward scenario, better suited for investors willing to tolerate volatility and operational uncertainty rather than those seeking stable, efficiently managed airport assets.

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 growth, rising commercial revenue, and 56.4% operating margins. OMAB’s stock price has appreciated by approximately 34.94% since our coverage. Antoni Nabzdyk shares a similar perspective but emphasizes CAAP’s high-risk, capital-intensive model and weaker competitive moats.

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Disclosure: None.