Grupo Aeroportuario del Sureste (ADR) (ASR): Yield and Growth in Mexican Airports

With a five-year EPS growth rate of 3.30% and a five-year revenue growth rate of 4.82%, Grupo del Pacific has not grown as fast as its cousins. It operates in some tourist towns like Manzanillo, but it does not have access to the same world famous resorts like those found in Cancun. The firm’s balance sheet is clean, with a total debt to equity ratio of .08, but the low growth rates decrease its attractiveness. Additionally, the company trades at a high P/E ratio of 30.60. Unless Grupo del Pacific comes down in price, it is best left for another day.

Conclusion

65% of Mexican professionals earn less than 10,000 pesos, or $784, per month. These low median income levels mean that international traffic is critical for the airports. A sudden increase in cartel violence is a risk, and Grupo del Centro Norte and Grupo del Pacific are more likely to see direct attacks on their facilities due to their northern presence. Until these companies come down in price Grupo Sureste is the best investment. Their assets in popular tourist destinations like Cancun give it a unique flair among other airports.

The article Yield and Growth in Mexican Airports originally appeared on Fool.com and is written by Joshua Bondy.

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