Stock Analysis

Does Grupo Aeroportuario del Sureste S. A. B. de C. V (BMV:ASURB) Deserve A Spot On Your Watchlist?

BMV:ASUR B
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The excitement of investing in a company that can reverse its fortunes is a big draw for some speculators, so even companies that have no revenue, no profit, and a record of falling short, can manage to find investors. Sometimes these stories can cloud the minds of investors, leading them to invest with their emotions rather than on the merit of good company fundamentals. 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). Even if this company is fairly valued by the market, investors would agree that generating consistent profits will continue to provide Grupo Aeroportuario del Sureste S. A. B. de C. V with the means to add long-term value to shareholders.

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

Grupo Aeroportuario del Sureste S. A. B. de C. V's Earnings Per Share Are Growing

Generally, companies experiencing growth in earnings per share (EPS) should see similar trends in share price. So it makes sense that experienced investors pay close attention to company EPS when undertaking investment research. It certainly is nice to see that Grupo Aeroportuario del Sureste S. A. B. de C. V has managed to grow EPS by 37% per year over three years. If growth like this continues on into the future, then shareholders will have plenty to smile about.

Careful consideration of revenue growth and earnings before interest and taxation (EBIT) margins can help inform a view on the sustainability of the recent profit growth. Grupo Aeroportuario del Sureste S. A. B. de C. V shareholders can take confidence from the fact that EBIT margins are up from 53% to 58%, and revenue is growing. Both of which are great metrics to check off for potential growth.

You can take a look at the company's revenue and earnings growth trend, in the chart below. Click on the chart to see the exact numbers.

earnings-and-revenue-history
BMV:ASUR B Earnings and Revenue History September 22nd 2023

While we live in the present moment, there's little doubt that the future matters most in the investment decision process. So why not check this interactive chart depicting future EPS estimates, for Grupo Aeroportuario del Sureste S. A. B. de C. V?

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

Since Grupo Aeroportuario del Sureste S. A. B. de C. V has a market capitalisation of Mex$133b, we wouldn't expect insiders to hold a large percentage of shares. But we do take comfort from the fact that they are investors in the company. We note that their impressive stake in the company is worth Mex$36b. This totals to 27% of shares in the company. Enough to lead management's decision making process down a path that brings the most benefit to shareholders. Looking very optimistic for investors.

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. Further, the high level of insider ownership is impressive and suggests that the management appreciates the EPS growth and has faith in Grupo Aeroportuario del Sureste S. A. B. de C. V's continuing strength. The growth and insider confidence is looked upon well and so it's worthwhile to investigate further with a view to discern the stock's true value. Even so, be aware that Grupo Aeroportuario del Sureste S. A. B. de C. V is showing 1 warning sign in our investment analysis , you should know about...

Although Grupo Aeroportuario del Sureste S. A. B. de C. V certainly looks good, it may appeal to more investors if insiders were buying up shares. If you like to see insider buying, then this free list of growing companies that insiders are buying, could be exactly what you're looking for.

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.