Investors Should Be Encouraged By Grupo Aeroportuario del Sureste S. A. B. de C. V's (BMV:ASURB) Returns On Capital

Finding a business that has the potential to grow substantially is not easy, but it is possible if we look at a few key financial metrics. Typically, we'll want to notice a trend of growing return on capital employed (ROCE) and alongside that, an expanding base of capital employed. Put simply, these types of businesses are compounding machines, meaning they are continually reinvesting their earnings at ever-higher rates of return. And in light of that, the trends we're seeing at Grupo Aeroportuario del Sureste S. A. B. de C. V's (BMV:ASURB) look very promising so lets take a look.

What Is Return On Capital Employed (ROCE)?

Just to clarify if you're unsure, ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business. The formula for this calculation on Grupo Aeroportuario del Sureste S. A. B. de C. V is:

Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)

0.23 = Mex$17b ÷ (Mex$78b - Mex$5.1b) (Based on the trailing twelve months to September 2024).

Therefore, Grupo Aeroportuario del Sureste S. A. B. de C. V has an ROCE of 23%. While that is an outstanding return, the rest of the Infrastructure industry generates similar returns, on average.

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

In the above chart we have measured Grupo Aeroportuario del Sureste S. A. B. de C. V's prior ROCE against its prior performance, but the future is arguably more important. If you'd like to see what analysts are forecasting going forward, you should check out our free analyst report for Grupo Aeroportuario del Sureste S. A. B. de C. V .

How Are Returns Trending?

The trends we've noticed at Grupo Aeroportuario del Sureste S. A. B. de C. V are quite reassuring. The numbers show that in the last five years, the returns generated on capital employed have grown considerably to 23%. Basically the business is earning more per dollar of capital invested and in addition to that, 34% more capital is being employed now too. So we're very much inspired by what we're seeing at Grupo Aeroportuario del Sureste S. A. B. de C. V thanks to its ability to profitably reinvest capital.

In Conclusion...

To sum it up, Grupo Aeroportuario del Sureste S. A. B. de C. V has proven it can reinvest in the business and generate higher returns on that capital employed, which is terrific. And with a respectable 80% awarded to those who held the stock over the last five years, you could argue that these developments are starting to get the attention they deserve. Therefore, we think it would be worth your time to check if these trends are going to continue.

Grupo Aeroportuario del Sureste S. A. B. de C. V does have some risks though, and we've spotted 1 warning sign for Grupo Aeroportuario del Sureste S. A. B. de C. V that you might be interested in.

If you want to search for more stocks that have been earning high returns, check out this free list of stocks with solid balance sheets that are also earning high returns on equity.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.