2Wk·

Why $AENA is Back in the "Optimal" Zone

$AENA (-2.19%) is one of my dearest stocks. I first initiated my position during the Corona crash when airports were empty and the market thought travel was permanently dead. Its one my highest weights in my portofolio 5.45 %

Between going ex-dividend on the 23rd, geopolitical tensions, and the CNMC freezing tariffs, the price has taken a noticeable hit..

But our algorithm just moved it from WATCH to OPTIMAL. Why?

Because basic screeners are showing a P/E of 17.1x, which looks expensive. But AENA is an infrastructure stock—you have to look at cash flow. At 12.3x P/FFO, the underlying cash generation is massive.

🟢 AENA.MC

Quality Score: 85/100 (Rock solid)

Opportunity Score: 55/100 (Just crossed the threshold)

It’s a borderline Opportunity score, but the cash flow easily covers the dividend despite the short-term regulatory noise. Sometimes the best time to buy infrastructure is when the regulator is making headlines.

2 Comments

Keineui@Keineui

2Wk

I like the stock but prefer $FER when it comes to Infrastructure. Spanish Dividend also is not something I want to have too much of due to the tax difference.

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Kini - Dividend Strategy@investron

2Wk

@Keineui That’s a totally fair point on the withholding taxes! Spanish taxes are definitely a drag, though Ferrovial moving to the Netherlands helps a bit on that front.

Ferrovial has incredible monopoly assets (those North American toll lanes are cash machines), but from a pure valuation standpoint right now, the difference is wild.

I actually just ran $FER through my algorithm to compare them:
AENA is trading at 12.3x P/FFO.
Ferrovial is trading at 26.5x P/FFO (priced to absolute perfection) with only a ~1.5% yield.

For me, AENA is just a special case. I bought it deep in the 2020 crash when everyone thought airports were finished. I'm sitting on a 103% capital gain and a 9.17% Yield on Cost right now. At that YoC, I can stomach the Spanish tax man! 😂

Do you hold $FER currently or just keeping it on the watchlist?

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