We Think Grupo Aeroportuario del Sureste S. A. B. de C. V (BMV:ASURB) Might Have The DNA Of A Multi-Bagger

There are a few key trends to look for if we want to identify the next multi-bagger. Firstly, we'd want to identify a growing return on capital employed (ROCE) and then alongside that, an ever-increasing base of capital employed. If you see this, it typically means it's a company with a great business model and plenty of profitable reinvestment opportunities. 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.

Return On Capital Employed (ROCE): What Is It?

If you haven't worked with ROCE before, it measures the 'return' (pre-tax profit) a company generates from capital employed in its business. To calculate this metric for Grupo Aeroportuario del Sureste S. A. B. de C. V, this is the formula:

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

0.24 = Mex$16b ÷ (Mex$73b - Mex$5.1b) (Based on the trailing twelve months to June 2024).

Therefore, Grupo Aeroportuario del Sureste S. A. B. de C. V has an ROCE of 24%. On its own that's a fantastic return on capital, though it's the same as the Infrastructure industry average of 24%.

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're interested, you can view the analysts predictions in our free analyst 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%. Basically the business is earning more per dollar of capital invested and in addition to that, 27% more capital is being employed now too. The increasing returns on a growing amount of capital is common amongst multi-baggers and that's why we're impressed.

In Conclusion...

All in all, it's terrific to see that Grupo Aeroportuario del Sureste S. A. B. de C. V is reaping the rewards from prior investments and is growing its capital base. And with a respectable 97% awarded to those who held the stock over the last five years, you could argue that these developments are starting to get the attention they deserve. Therefore, we think it would be worth your time to check if these trends are going to continue.

Like most companies, Grupo Aeroportuario del Sureste S. A. B. de C. V does come with some risks, and we've found 1 warning sign that you should be aware of.

If you want to search for more stocks that have been earning high returns, check out this free list of stocks with solid balance sheets that are also earning high returns on equity.

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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.