Investors Appear Satisfied With Grupo Aeroportuario del Centro Norte, S.A.B. de C.V.'s (BMV:OMAB) Prospects

There wouldn't be many who think Grupo Aeroportuario del Centro Norte, S.A.B. de C.V.'s (BMV:OMAB) price-to-earnings (or "P/E") ratio of 14.4x is worth a mention when the median P/E in Mexico is similar at about 14x. Although, it's not wise to simply ignore the P/E without explanation as investors may be disregarding a distinct opportunity or a costly mistake.

Grupo Aeroportuario del Centro Norte. de certainly has been doing a good job lately as it's been growing earnings more than most other companies. One possibility is that the P/E is moderate because investors think this strong earnings performance might be about to tail off. If not, then existing shareholders have reason to be feeling optimistic about the future direction of the share price.

Check out our latest analysis for Grupo Aeroportuario del Centro Norte. de

Keen to find out how analysts think Grupo Aeroportuario del Centro Norte. de's future stacks up against the industry? In that case, our free report is a great place to start.

How Is Grupo Aeroportuario del Centro Norte. de's Growth Trending?

Grupo Aeroportuario del Centro Norte. de's P/E ratio would be typical for a company that's only expected to deliver moderate growth, and importantly, perform in line with the market.

If we review the last year of earnings growth, the company posted a terrific increase of 19%. The strong recent performance means it was also able to grow EPS by 829% in total over the last three years. Therefore, it's fair to say the earnings growth recently has been superb for the company.

Shifting to the future, estimates from the analysts covering the company suggest earnings should grow by 9.7% each year over the next three years. That's shaping up to be similar to the 9.6% each year growth forecast for the broader market.

With this information, we can see why Grupo Aeroportuario del Centro Norte. de is trading at a fairly similar P/E to the market. Apparently shareholders are comfortable to simply hold on while the company is keeping a low profile.

The Key Takeaway

Using the price-to-earnings ratio alone to determine if you should sell your stock isn't sensible, however it can be a practical guide to the company's future prospects.

As we suspected, our examination of Grupo Aeroportuario del Centro Norte. de's analyst forecasts revealed that its market-matching earnings outlook is contributing to its current P/E. Right now shareholders are comfortable with the P/E as they are quite confident future earnings won't throw up any surprises. Unless these conditions change, they will continue to support the share price at these levels.

And what about other risks? Every company has them, and we've spotted 2 warning signs for Grupo Aeroportuario del Centro Norte. de you should know about.

It's important to make sure you look for a great company, not just the first idea you come across. So take a peek at this free list of interesting companies with strong recent earnings growth (and a low P/E).

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.