Is Weakness In Grupo Aeroportuario del Sureste, S. A. B. de C. V. (BMV:ASURB) Stock A Sign That The Market Could be Wrong Given Its Strong Financial Prospects?

Grupo Aeroportuario del Sureste S. A. B. de C. V (BMV:ASURB) has had a rough three months with its share price down 8.1%. But if you pay close attention, you might gather that its strong financials could mean that the stock could potentially see an increase in value in the long-term, given how markets usually reward companies with good financial health. Particularly, we will be paying attention to Grupo Aeroportuario del Sureste S. A. B. de C. V's ROE today.

Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors’ money. In other words, it is a profitability ratio which measures the rate of return on the capital provided by the company's shareholders.

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How Is ROE Calculated?

Return on equity 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:

27% = Mex$12b ÷ Mex$44b (Based on the trailing twelve months to September 2025).

The 'return' is the yearly profit. One way to conceptualize this is that for each MX$1 of shareholders' capital it has, the company made MX$0.27 in profit.

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

Why Is ROE Important For 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. Generally speaking, other things being equal, firms with a high return on equity and profit retention, have a higher growth rate than firms that don’t share these attributes.

Grupo Aeroportuario del Sureste S. A. B. de C. V's Earnings Growth And 27% ROE

To start with, Grupo Aeroportuario del Sureste S. A. B. de C. V's ROE looks acceptable. Further, the company's ROE compares quite favorably to the industry average of 20%. This probably laid the ground for Grupo Aeroportuario del Sureste S. A. B. de C. V's significant 27% net income growth seen over the past five years. We believe that there might also be other aspects that are positively influencing the company's earnings growth. For example, it is possible that the company's management has made some good strategic decisions, or that the company has a low payout ratio.

We then performed a comparison between Grupo Aeroportuario del Sureste S. A. B. de C. V's net income growth with the industry, which revealed that the company's growth is similar to the average industry growth of 25% in the same 5-year period.

Earnings growth is a huge factor in stock valuation. The investor should try to establish if the expected growth or decline in earnings, whichever the case may be, is priced in. This then helps them determine if the stock is placed for a bright or bleak future. Is ASUR B fairly valued? This infographic on the company's intrinsic value has everything you need to know.

Is Grupo Aeroportuario del Sureste S. A. B. de C. V Efficiently Re-investing 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.

Moreover, Grupo Aeroportuario del Sureste S. A. B. de C. V is determined to keep sharing its profits with shareholders which we infer from its long history of paying a dividend for at least ten years. Looking at the current analyst consensus data, we can see that the company's future payout ratio is expected to rise to 58% over the next three years. Regardless, the ROE is not expected to change much for the company despite the higher expected payout ratio.

Summary

In total, we are pretty happy with Grupo Aeroportuario del Sureste S. A. B. de C. V's performance. Particularly, we like that the company is reinvesting heavily into its business, and at a high rate of return. Unsurprisingly, this has led to an impressive earnings growth. 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.