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

While Grupo Aeroportuario del Sureste, S. A. B. de C. V. (BMV:ASURB) might not be the most widely known stock at the moment, it saw a decent share price growth in the teens level on the BMV over the last few months. As a mid-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. However, could the stock still be trading at a relatively cheap price? 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 the opportunity still exists.

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

What's The Opportunity In Grupo Aeroportuario del Sureste S. A. B. de C. V?

The share price seems sensible at the moment according to my price multiple model, where I compare the company's price-to-earnings ratio to the industry average. In this instance, I’ve used the price-to-earnings (PE) ratio given that there is not enough information to reliably forecast the stock’s cash flows. I find that Grupo Aeroportuario del Sureste S. A. B. de C. V’s ratio of 16.11x is trading slightly below its industry peers’ ratio of 16.43x, which means if you buy Grupo Aeroportuario del Sureste S. A. B. de C. V today, you’d be paying a decent price for it. And if you believe that Grupo Aeroportuario del Sureste S. A. B. de C. V should be trading at this level in the long run, then there’s not much of an upside to gain over and above other industry peers. 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.

What does the future of Grupo Aeroportuario del Sureste S. A. B. de C. V look like?

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. Grupo Aeroportuario del Sureste S. A. B. de C. V's earnings over the next few years are expected to increase by 33%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.

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 conviction to buy should the price fluctuate 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 optimal time to buy, given it is trading around industry price multiples. However, the optimistic forecast 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.

Diving deeper into the forecasts for Grupo Aeroportuario del Sureste S. A. B. de C. V mentioned earlier will help you understand how analysts view the stock going forward. Luckily, you can check out what analysts are forecasting by clicking here.

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.