What Is Grupo Aeroportuario del Centro Norte, S.A.B. de C.V.'s (BMV:OMAB) Share Price Doing?

While Grupo Aeroportuario del Centro Norte, S.A.B. de C.V. (BMV:OMAB) might not have the largest market cap around , it saw a double-digit share price rise of over 10% in the past couple of months on the BMV. While good news for shareholders, the company has traded much higher in the past year. 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, what if the stock is still a bargain? Let’s take a look at Grupo Aeroportuario del Centro Norte. de’s outlook and value based on the most recent financial data to see if the opportunity still exists.

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

Is Grupo Aeroportuario del Centro Norte. de Still Cheap?

The share price seems sensible at the moment according to our price multiple model, where we compare the company's price-to-earnings ratio to the industry average. We’ve used the price-to-earnings ratio in this instance because there’s not enough visibility to forecast its cash flows. The stock’s ratio of 12.32x is currently trading slightly below its industry peers’ ratio of 14.98x, which means if you buy Grupo Aeroportuario del Centro Norte. de today, you’d be paying a decent price for it. And if you believe that Grupo Aeroportuario del Centro Norte. de should be trading at this level in the long run, then there’s not much of an upside to gain over and above other industry peers. So, is there another chance to buy low in the future? Given that Grupo Aeroportuario del Centro Norte. de’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us an opportunity to buy later on. This is based on its high beta, which is a good indicator for share price volatility.

Can we expect growth from Grupo Aeroportuario del Centro Norte. de?

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. 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 Centro Norte. de's earnings over the next few years are expected to increase by 29%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.

What This Means For You

Are you a shareholder? OMA B’s optimistic future growth appears to have been factored into the current share price, 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 an eye on OMA B, now may not be the most optimal time to buy, given it is trading around industry price multiples. However, the optimistic forecast is encouraging for OMA B, 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.

So if you'd like to dive deeper into this stock, it's crucial to consider any risks it's facing. At Simply Wall St, we found 3 warning signs for Grupo Aeroportuario del Centro Norte. de and we think they deserve your attention.

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.