Is There Now An Opportunity In Grupo Aeroportuario del Sureste, S. A. B. de C. V. (BMV:ASURB)?

Grupo Aeroportuario del Sureste, S. A. B. de C. V. (BMV:ASURB), might not be a large cap stock, but it saw significant share price movement during recent months on the BMV, rising to highs of Mex$454 and falling to the lows of Mex$395. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Grupo Aeroportuario del Sureste S. A. B. de C. V's current trading price of Mex$426 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Grupo Aeroportuario del Sureste S. A. B. de C. V’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

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

Is Grupo Aeroportuario del Sureste S. A. B. de C. V still cheap?

According to my price multiple model, which makes a comparison between the company's price-to-earnings ratio and the industry average, the stock price seems to be justfied. I’ve used the price-to-earnings ratio in this instance because there’s not enough visibility to forecast its cash flows. The stock’s ratio of 21.35x is currently trading slightly above its industry peers’ ratio of 20.9x, which means if you buy Grupo Aeroportuario del Sureste S. A. B. de C. V today, you’d be paying a relatively sensible price for it. And if you believe Grupo Aeroportuario del Sureste S. A. B. de C. V should be trading in this range, then there isn’t really any room for the share price grow beyond the levels of other industry peers over the long-term. In addition to this, it seems like Grupo Aeroportuario del Sureste S. A. B. de C. V’s share price is quite stable, which could mean there may be less chances to buy low in the future now that it’s trading around the price multiples of other industry peers. This is because the stock is less volatile than the wider market given its low beta.

Can we expect growth from Grupo Aeroportuario del Sureste S. A. B. de C. V?

Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. With profit expected to grow by 61% over the next couple of years, the future seems bright for Grupo Aeroportuario del Sureste S. A. B. de C. V. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.

What this means for you:

Are you a shareholder? It seems like the market has already priced in ASUR B’s positive outlook, with shares trading around industry price multiples. However, there are also other important factors which we haven’t considered today, such as the track record of its management team. Have these factors changed since the last time you looked at ASUR B? Will you have enough confidence to invest in the company should the price drop below the industry PE ratio?

Are you a potential investor? If you’ve been keeping tabs on ASUR B, now may not be the most advantageous time to buy, given it is trading around industry price multiples. However, the positive outlook is encouraging for ASUR B, which means it’s worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

If you want to dive deeper into Grupo Aeroportuario del Sureste S. A. B. de C. V, you'd also look into what risks it is currently facing. Case in point: We've spotted 1 warning sign for Grupo Aeroportuario del Sureste S. A. B. de C. V you should be aware of.

If you are no longer interested in Grupo Aeroportuario del Sureste S. A. B. de C. V, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

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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.