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

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. 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 can act like a sponge for capital - so investors should be cautious that they're not throwing good money after bad.

Despite being in the age of tech-stock blue-sky investing, many investors still adopt a more traditional strategy; buying shares in profitable 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

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

If a company can keep growing earnings per share (EPS) long enough, its share price should eventually follow. That means EPS growth is considered a real positive by most successful long-term investors. To the delight of shareholders, Grupo Aeroportuario del Sureste S. A. B. de C. V has achieved impressive annual EPS growth of 41%, compound, over the last three years. That sort of growth rarely ever lasts long, but it is well worth paying attention to when it happens.

One way to double-check a company's growth is to look at how its revenue, and earnings before interest and tax (EBIT) margins are changing. Grupo Aeroportuario del Sureste S. A. B. de C. V maintained stable EBIT margins over the last year, all while growing revenue 11% to Mex$29b. That's encouraging news for the company!

The chart below shows how the company's bottom and top lines have progressed over time. To see the actual numbers, click on the chart.

In investing, as in life, the future matters more than the past. So why not check out this free interactive visualization of Grupo Aeroportuario del Sureste S. A. B. de C. V's forecast profits?

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

Owing to the size of Grupo Aeroportuario del Sureste S. A. B. de C. V, we wouldn't expect insiders to hold a significant proportion of the company. But we do take comfort from the fact that they are investors in the company. Notably, they have an enviable stake in the company, worth Mex$51b. This totals to 29% of shares in the company. Enough to lead management's decision making process down a path that brings the most benefit to shareholders. Very encouraging.

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

Grupo Aeroportuario del Sureste S. A. B. de C. V's earnings per share have been soaring, with growth rates sky high. That sort of growth is nothing short of eye-catching, and the large investment held by insiders should certainly brighten the view of the company. The hope is, of course, that the strong growth marks a fundamental improvement in the business economics. Based on the sum of its parts, we definitely think its worth watching Grupo Aeroportuario del Sureste S. A. B. de C. V very closely. You should always think about risks though. Case in point, we've spotted 1 warning sign for Grupo Aeroportuario del Sureste S. A. B. de C. V you should be aware of.

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 companies with more skin in the game, then check out this handpicked selection of Mexican companies that not only boast of strong growth but have strong insider backing.

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.