Investors Shouldn't Overlook Grupo Aeroportuario del Sureste S. A. B. de C. V's (BMV:ASURB) Impressive Returns On Capital

What are the early trends we should look for to identify a stock that could multiply in value over the long term? Firstly, we'd want to identify a growing return on capital employed (ROCE) and then alongside that, an ever-increasing base of capital employed. If you see this, it typically means it's a company with a great business model and plenty of profitable reinvestment opportunities. So when we looked at the ROCE trend of Grupo Aeroportuario del Sureste S. A. B. de C. V (BMV:ASURB) we really liked what we saw.

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. To calculate this metric for Grupo Aeroportuario del Sureste S. A. B. de C. V, this is the formula:

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

0.22 = Mex$14b ÷ (Mex$71b - Mex$5.6b) (Based on the trailing twelve months to December 2022).

Therefore, Grupo Aeroportuario del Sureste S. A. B. de C. V has an ROCE of 22%. In absolute terms that's a great return and it's even better than the Infrastructure industry average of 12%.

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 report for Grupo Aeroportuario del Sureste S. A. B. de C. V.

What The Trend Of ROCE Can Tell Us

We like the trends that we're seeing from Grupo Aeroportuario del Sureste S. A. B. de C. V. Over the last five years, returns on capital employed have risen substantially to 22%. The company is effectively making more money per dollar of capital used, and it's worth noting that the amount of capital has increased too, by 21%. The increasing returns on a growing amount of capital is common amongst multi-baggers and that's why we're impressed.

The Bottom Line On Grupo Aeroportuario del Sureste S. A. B. de C. V's ROCE

All in all, it's terrific to see that Grupo Aeroportuario del Sureste S. A. B. de C. V is reaping the rewards from prior investments and is growing its capital base. And with a respectable 70% 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. So given the stock has proven it has promising trends, it's worth researching the company further to see if these trends are likely to persist.

While Grupo Aeroportuario del Sureste S. A. B. de C. V looks impressive, no company is worth an infinite price. The intrinsic value infographic in our free research report helps visualize whether ASUR B is currently trading for a fair price.

High returns are a key ingredient to strong performance, so check out our free list ofstocks earning high returns on equity with solid balance sheets.

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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.