| Valuation method | Value, CHF | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 180.99 | -24 |
| Intrinsic value (DCF) | 81.61 | -66 |
| Graham-Dodd Method | 70.34 | -71 |
| Graham Formula | 159.82 | -33 |
Flughafen Zürich AG (FHZN.SW) is the operator of Zurich Airport, Switzerland’s largest and busiest international aviation hub. The company provides critical infrastructure and services for flight operations, passenger handling, cargo logistics, and security. Its diversified revenue streams include aeronautical fees (runway, terminal, and landing charges), commercial operations (retail, dining, and parking), and real estate leasing. As a key gateway to Europe, Zurich Airport serves over 30 million passengers annually, connecting global travelers to major business and leisure destinations. The company plays a vital role in Switzerland’s transport and tourism sectors, benefiting from the country’s strong economy and high disposable income levels. With a focus on sustainability and digitalization, Flughafen Zürich AG is investing in terminal expansions and energy-efficient infrastructure to maintain its competitive edge. The stock is listed on the SIX Swiss Exchange and is a component of the Swiss Market Index (SMI) Mid.
Flughafen Zürich AG presents a stable investment opportunity with moderate growth potential, supported by its monopoly-like position as Zurich Airport’s sole operator. The company benefits from resilient aeronautical revenues, high-margin commercial activities, and a strong balance sheet (net debt/EBITDA of ~2x). However, its earnings are sensitive to air traffic recovery post-pandemic, regulatory risks (e.g., fee caps), and competition from nearby European hubs like Munich and Frankfurt. The stock offers a dividend yield of ~2.5%, backed by consistent cash flows. While not a high-growth play, it appeals to investors seeking defensive exposure to European aviation infrastructure with low beta (0.85). Key risks include economic downturns, airline bankruptcies, and environmental regulations impacting expansion plans.
Flughafen Zürich AG’s competitive advantage stems from its strategic location in Switzerland’s financial and tourism heartland, coupled with its dual-hub status for Swiss International Air Lines (SWISS) and Edelweiss Air. The airport’s high service quality (ranked among Europe’s top 5 by Skytrax) and efficient operations attract premium airlines and transit passengers. Unlike privatized peers, Zurich Airport’s ownership structure (majority-held by public entities) ensures long-term infrastructure investments but may limit agility. The company faces competition from other European hubs: Munich (FMG.DE) and Frankfurt (FRA.DE) offer more long-haul connections, while Geneva Airport (GVA) caters to leisure traffic. Zurich’s smaller scale vs. mega-hubs is offset by higher non-aeronautical revenue per passenger (retail, VIP services). Its competitive moat includes limited Swiss airport alternatives and strong airline partnerships, though rising rail competition (e.g., Gotthard Base Tunnel) poses a structural threat to short-haul flights.