If EPS Growth Is Important To You, Grupo Aeroportuario del Sureste S. A. B. de C. V (BMV:ASURB) Presents An Opportunity

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. Unfortunately, these high risk investments often have little probability of ever paying off, and many investors pay a price to learn their lesson. Loss making companies can act like a sponge for capital - so investors should be cautious that they're not throwing good money after bad.

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.

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?

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. Therefore, there are plenty of investors who like to buy shares in companies that are growing EPS. Shareholders will be happy to know that Grupo Aeroportuario del Sureste S. A. B. de C. V's EPS has grown 22% each year, compound, over three years. If growth like this continues on into the future, then shareholders will have plenty to smile about.

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. The good news is that Grupo Aeroportuario del Sureste S. A. B. de C. V is growing revenues, and EBIT margins improved by 12.0 percentage points to 58%, over the last year. 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. 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?

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, insiders are sometimes wrong, and we don't know the exact thinking behind their acquisitions.

One shining light for Grupo Aeroportuario del Sureste S. A. B. de C. V is the serious outlay one insider has made to buy shares, in the last year. In other words, the President & Chairman, Fernando Gerardo Chico Pardo, acquired Mex$1.2b worth of shares over the previous 12 months at an average price of around Mex$411. It doesn't get much better than that, in terms of large investments from insiders.

On top of the insider buying, it's good to see that Grupo Aeroportuario del Sureste S. A. B. de C. V insiders have a valuable investment in the business. We note that their impressive stake in the company is worth Mex$44b. Coming in at 27% of the business, that holding gives insiders a lot of influence, and plenty of reason to generate value for shareholders. Looking very optimistic for investors.

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

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. On top of that, insiders own a significant piece of the pie when it comes to the company's stock, and one has been buying more. Astute investors will want to keep this stock on watch. Of course, just because Grupo Aeroportuario del Sureste S. A. B. de C. V is growing does not mean it is undervalued. If you're wondering about the valuation, check out this gauge of its price-to-earnings ratio, as compared to its industry.

Keen growth investors love to see insider buying. Thankfully, Grupo Aeroportuario del Sureste S. A. B. de C. V isn't the only one. You can see a a free list of them here.

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.