Is Grupo Aeroportuario del Sureste, S. A. B. de C. V.'s (BMV:ASURB) Latest Stock Performance A Reflection Of Its Financial Health?

Most readers would already be aware that Grupo Aeroportuario del Sureste S. A. B. de C. V's (BMV:ASURB) stock increased significantly by 6.5% over the past month. Given that the market rewards strong financials in the long-term, we wonder if that is the case in this instance. In this article, we decided to focus on Grupo Aeroportuario del Sureste S. A. B. de C. V's ROE.

Return on equity or ROE is a key measure used to assess how efficiently a company's management is utilizing the company's capital. Simply put, it is used to assess the profitability of a company in relation to its equity capital.

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How To Calculate Return On Equity?

ROE can be calculated by using the formula:

Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity

So, based on the above formula, the ROE for Grupo Aeroportuario del Sureste S. A. B. de C. V is:

31% = Mex$13b ÷ Mex$42b (Based on the trailing twelve months to June 2025).

The 'return' is the amount earned after tax over the last twelve months. So, this means that for every MX$1 of its shareholder's investments, the company generates a profit of MX$0.31.

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

What Is The Relationship Between ROE And Earnings Growth?

We have already established that ROE serves as an efficient profit-generating gauge for a company's future earnings. We now need to evaluate how much profit the company reinvests or "retains" for future growth which then gives us an idea about the growth potential of the company. Assuming all else is equal, companies that have both a higher return on equity and higher profit retention are usually the ones that have a higher growth rate when compared to companies that don't have the same features.

Grupo Aeroportuario del Sureste S. A. B. de C. V's Earnings Growth And 31% ROE

First thing first, we like that Grupo Aeroportuario del Sureste S. A. B. de C. V has an impressive ROE. Secondly, even when compared to the industry average of 15% the company's ROE is quite impressive. Under the circumstances, Grupo Aeroportuario del Sureste S. A. B. de C. V's considerable five year net income growth of 30% was to be expected.

Next, on comparing with the industry net income growth, we found that Grupo Aeroportuario del Sureste S. A. B. de C. V's growth is quite high when compared to the industry average growth of 20% in the same period, which is great to see.

Earnings growth is a huge factor in stock valuation. What investors need to determine next is if the expected earnings growth, or the lack of it, is already built into the share price. By doing so, they will have an idea if the stock is headed into clear blue waters or if swampy waters await. What is ASUR B worth today? The intrinsic value infographic in our free research report helps visualize whether ASUR B is currently mispriced by the market.

Is Grupo Aeroportuario del Sureste S. A. B. de C. V Making Efficient Use Of Its Profits?

The three-year median payout ratio for Grupo Aeroportuario del Sureste S. A. B. de C. V is 30%, which is moderately low. The company is retaining the remaining 70%. By the looks of it, the dividend is well covered and Grupo Aeroportuario del Sureste S. A. B. de C. V is reinvesting its profits efficiently as evidenced by its exceptional growth which we discussed above.

Besides, Grupo Aeroportuario del Sureste S. A. B. de C. V has been paying dividends for at least ten years or more. This shows that the company is committed to sharing profits with its shareholders. Looking at the current analyst consensus data, we can see that the company's future payout ratio is expected to rise to 65% over the next three years. Therefore, the expected rise in the payout ratio explains why the company's ROE is expected to decline to 21% over the same period.

Conclusion

Overall, we are quite pleased with Grupo Aeroportuario del Sureste S. A. B. de C. V's performance. In particular, it's great to see that the company is investing heavily into its business and along with a high rate of return, that has resulted in a sizeable growth in its earnings. With that said, the latest industry analyst forecasts reveal that the company's earnings growth is expected to slow down. To know more about the latest analysts predictions for the company, check out this visualization of analyst forecasts for the company.

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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.