Is It Time To Consider Buying Grupo Aeroportuario del Centro Norte, S.A.B. de C.V. (BMV:OMAB)?

Grupo Aeroportuario del Centro Norte, S.A.B. de C.V. (BMV:OMAB), might not be a large cap stock, but it received a lot of attention from a substantial price increase on the BMV over the last few months. Shareholders may appreciate the recent price jump, but the company still has a way to go before reaching its yearly highs again. As a mid-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. However, could the stock still be trading at a relatively cheap price? Today we will analyse the most recent data on Grupo Aeroportuario del Centro Norte. de’s outlook and valuation to see if the opportunity still exists.

See our latest analysis for Grupo Aeroportuario del Centro Norte. de

What's The Opportunity In Grupo Aeroportuario del Centro Norte. de?

According to our price multiple model, which makes a comparison between the company's price-to-earnings ratio and the industry average, the stock price seems to be justfied. In this instance, we’ve used the price-to-earnings (PE) ratio given that there is not enough information to reliably forecast the stock’s cash flows. We find that Grupo Aeroportuario del Centro Norte. de’s ratio of 13.09x is trading slightly below its industry peers’ ratio of 15.52x, which means if you buy Grupo Aeroportuario del Centro Norte. de today, you’d be paying a reasonable price for it. And if you believe Grupo Aeroportuario del Centro Norte. de should be trading in this range, then there isn’t much room for the share price to grow beyond the levels of other industry peers over the long-term. Furthermore, it seems like Grupo Aeroportuario del Centro Norte. de’s share price is quite stable, which means there may be less chances to buy low in the future now that it’s priced similarly to industry peers. This is because the stock is less volatile than the wider market given its low beta.

What does the future of Grupo Aeroportuario del Centro Norte. de look like?

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. With profit expected to grow by 52% over the next couple of years, the future seems bright for Grupo Aeroportuario del Centro Norte. de. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.

What This Means For You

Are you a shareholder? It seems like the market has already priced in OMA B’s positive outlook, with shares trading around industry price multiples. However, there are also other important factors which we haven’t considered today, such as the financial strength of the company. Have these factors changed since the last time you looked at OMA B? Will you have enough confidence to invest in the company should the price drop below the industry PE ratio?

Are you a potential investor? If you’ve been keeping tabs on OMA B, now may not be the most optimal time to buy, given it is trading around industry price multiples. However, the positive outlook is encouraging for OMA B, which means it’s worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

So while earnings quality is important, it's equally important to consider the risks facing Grupo Aeroportuario del Centro Norte. de at this point in time. For example - Grupo Aeroportuario del Centro Norte. de has 2 warning signs we think you should be aware of.

If you are no longer interested in Grupo Aeroportuario del Centro Norte. de, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

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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.