When Should You Buy 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$383 and falling to the lows of Mex$341. 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$362 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.

See 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 valuation model, Grupo Aeroportuario del Sureste S. A. B. de C. V seems to be fairly priced at around 13% below my intrinsic value, which means if you buy Grupo Aeroportuario del Sureste S. A. B. de C. V today, you’d be paying a fair price for it. And if you believe that the stock is really worth MX$413.83, then there isn’t much room for the share price grow beyond what it’s currently trading. What's more, Grupo Aeroportuario del Sureste S. A. B. de C. V’s share price may be more stable over time (relative to the market), as indicated by 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. Grupo Aeroportuario del Sureste S. A. B. de C. V's earnings over the next few years are expected to double, indicating a very optimistic future ahead. This should lead to stronger cash flows, feeding into a higher share value.

What this means for you:

Are you a shareholder? ASUR B’s optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value. 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 the stock? Will you have enough conviction to buy should the price fluctuates below the true value?

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 its fair value. However, the optimistic prospect is encouraging for the company, which means it’s worth further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

Keep in mind, when it comes to analysing a stock it's worth noting the risks involved. While conducting our analysis, we found that Grupo Aeroportuario del Sureste S. A. B. de C. V has 1 warning sign and it would be unwise to ignore this.

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This article by Simply Wall St is general in nature. 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.
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