Under The Bonnet, Grupo Aeroportuario del Sureste S. A. B. de C. V's (BMV:ASURB) Returns Look Impressive

If we want to find a potential multi-bagger, often there are underlying trends that can provide clues. In a perfect world, we'd like to see a company investing more capital into its business and ideally the returns earned from that capital are also increasing. This shows us that it's a compounding machine, able to continually reinvest its earnings back into the business and generate higher returns. 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.

Understanding Return On Capital Employed (ROCE)

For those who don't know, ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business. The formula for this calculation on Grupo Aeroportuario del Sureste S. A. B. de C. V is:

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

0.24 = Mex$15b ÷ (Mex$71b - Mex$7.1b) (Based on the trailing twelve months to September 2023).

Thus, Grupo Aeroportuario del Sureste S. A. B. de C. V has an ROCE of 24%. While that is an outstanding return, the rest of the Infrastructure industry generates similar returns, on average.

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

Above you can see how the current ROCE for Grupo Aeroportuario del Sureste S. A. B. de C. V compares to its prior returns on capital, but there's only so much you can tell from the past. 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.

The Trend Of ROCE

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 24%. The amount of capital employed 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

To sum it up, Grupo Aeroportuario del Sureste S. A. B. de C. V has proven it can reinvest in the business and generate higher returns on that capital employed, which is terrific. Since the stock has returned a solid 51% to shareholders over the last five years, it's fair to say investors are beginning to recognize these changes. Therefore, we think it would be worth your time to check if these trends are going to continue.

Grupo Aeroportuario del Sureste S. A. B. de C. V does have some risks though, and we've spotted 2 warning signs for Grupo Aeroportuario del Sureste S. A. B. de C. V that you might be interested in.

Grupo Aeroportuario del Sureste S. A. B. de C. V is not the only stock earning high returns. If you'd like to see more, check out our free list of companies earning high returns on equity with solid fundamentals.

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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.