Grupo Aeroportuario del Sureste S. A. B. de C. V (BMV:ASURB) Ticks All The Boxes When It Comes To Earnings Growth

For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to investors, even if it currently lacks a track record of revenue and profit. But as Peter Lynch said in One Up On Wall Street, 'Long shots almost never pay off.' 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.

If this kind of company isn't your style, you like companies that generate revenue, and even earn profits, then you may well be interested in 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.

See 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 Its Earnings Per Share?

In the last three years Grupo Aeroportuario del Sureste S. A. B. de C. V's earnings per share took off; so much so that it's a bit disingenuous to use these figures to try and deduce long term estimates. So it would be better to isolate the growth rate over the last year for our analysis. Grupo Aeroportuario del Sureste S. A. B. de C. V boosted its trailing twelve month EPS from Mex$33.55 to Mex$40.01, in the last year. That's a 19% gain; respectable growth in the broader scheme of things.

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. EBIT margins for Grupo Aeroportuario del Sureste S. A. B. de C. V remained fairly unchanged over the last year, however the company should be pleased to report its revenue growth for the period of 7.1% to Mex$28b. That's progress.

You can take a look at the company's revenue and earnings growth trend, in the chart below. For finer detail, click on the image.

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?

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$46b. Coming in at 28% of the business, that holding gives insiders a lot of influence, and plenty of reason to generate value for shareholders. Very encouraging.

Is Grupo Aeroportuario del Sureste S. A. B. de C. V Worth Keeping An Eye On?

As previously touched on, Grupo Aeroportuario del Sureste S. A. B. de C. V is a growing business, which is encouraging. To add an extra spark to the fire, significant insider ownership in the company is another highlight. That combination is very appealing. So yes, we do think the stock is worth keeping an eye on. Before you take the next step you should know about the 1 warning sign for Grupo Aeroportuario del Sureste S. A. B. de C. V that we have uncovered.

There's always the possibility of doing well buying stocks that are not growing earnings and do not have insiders buying shares. But for those who consider these important metrics, we encourage you to check out companies that do have those features. You can access a tailored list of Mexican companies which have demonstrated growth backed by significant insider holdings.

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.