Do Grupo Aeroportuario del Sureste S. A. B. de C. V's (BMV:ASURB) Earnings Warrant Your Attention?

Investors are often guided by the idea of discovering 'the next big thing', even if that means buying 'story stocks' without any revenue, let alone profit. But the reality is that when a company loses money each year, for long enough, its investors will usually take their share of those losses. Loss-making companies are always racing against time to reach financial sustainability, so investors in these companies may be taking on more risk than they should.

So if this idea of high risk and high reward doesn't suit, you might be more interested in profitable, growing companies, like Grupo Aeroportuario del Sureste S. A. B. de C. V (BMV:ASURB). While profit isn't the sole metric that should be considered when investing, it's worth recognising businesses that can consistently produce it.

View our latest analysis for Grupo Aeroportuario del Sureste S. A. B. de C. V

How Fast Is Grupo Aeroportuario del Sureste S. A. B. de C. V Growing?

The market is a voting machine in the short term, but a weighing machine in the long term, so you'd expect share price to follow earnings per share (EPS) outcomes eventually. That makes EPS growth an attractive quality for any company. Shareholders will be happy to know that Grupo Aeroportuario del Sureste S. A. B. de C. V's EPS has grown 21% each year, compound, over three years. If growth like this continues on into the future, then shareholders will have plenty to smile about.

Top-line growth is a great indicator that growth is sustainable, and combined with a high earnings before interest and taxation (EBIT) margin, it's a great way for a company to maintain a competitive advantage in the market. The music to the ears of Grupo Aeroportuario del Sureste S. A. B. de C. V shareholders is that EBIT margins have grown from 50% to 57% in the last 12 months and revenues are on an upwards trend as well. That's great to see, on both counts.

In the chart below, you can see how the company has grown earnings and revenue, over time. For finer detail, click on the image.

Fortunately, we've got access to analyst forecasts of Grupo Aeroportuario del Sureste S. A. B. de C. V's future profits. You can do your own forecasts without looking, or you can take a peek at what the professionals are predicting.

Are Grupo Aeroportuario del Sureste S. A. B. de C. V Insiders Aligned With All Shareholders?

Investors are always searching for a vote of confidence in the companies they hold and insider buying is one of the key indicators for optimism on the market. That's because insider buying often indicates that those closest to the company have confidence that the share price will perform well. However, small purchases are not always indicative of conviction, and insiders don't always get it right.

The good news for Grupo Aeroportuario del Sureste S. A. B. de C. V is that one insider has illustrated their belief in the company's future with a huge purchase of shares in the last 12 months. Specifically, the President & Chairman, Fernando Gerardo Chico Pardo, accumulated Mex$1.2b worth of shares at a price of Mex$411. Seeing such high conviction in the company is a huge positive for shareholders and should instil confidence in their mission.

Along with the insider buying, another encouraging sign for Grupo Aeroportuario del Sureste S. A. B. de C. V is that insiders, as a group, have a considerable shareholding. Notably, they have an enviable stake in the company, worth Mex$41b. Coming in at 27% of the business, that holding gives insiders a lot of influence, and plenty of reason to generate value for shareholders. So there is opportunity here to invest in a company whose management have tangible incentives to deliver.

Should You Add Grupo Aeroportuario del Sureste S. A. B. de C. V To Your Watchlist?

If you believe that share price follows earnings per share you should definitely be delving further into Grupo Aeroportuario del Sureste S. A. B. de C. V's strong EPS growth. Better still, insiders own a large chunk of the company and one has even been buying more shares. So it's fair to say that this stock may well deserve a spot on your watchlist. Now, you could try to make up your mind on Grupo Aeroportuario del Sureste S. A. B. de C. V by focusing on just these factors, or you could also consider how its price-to-earnings ratio compares to other companies in its industry.

There are plenty of other companies that have insiders buying up shares. So if you like the sound of Grupo Aeroportuario del Sureste S. A. B. de C. V, you'll probably love this free list of growing companies that insiders are buying.

Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.