Grupo Aeroportuario del Sureste (ASR) AI Stock Analysis

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Grupo Aeroportuario del Sureste

(NYSE:ASR)

76Outperform

ASR exhibits strong financial performance with robust revenue growth and stable profitability. Technical analysis indicates moderate upward momentum, while the stock appears undervalued based on its P/E ratio. The earnings call presented mixed signals, with strong regional performance countered by challenges in Mexico. Overall, the stock shows solid potential but faces some headwinds.

Grupo Aeroportuario del Sureste (ASR) vs. S&P 500 (SPY)

Market Cap

$8.06B

Dividend Yield2.13%

Average Volume (3M)51.89K

Price to Earnings (P/E)11.0

Beta (1Y)0.97

Revenue Growth17.41%

EPS Growth28.94%

CountryUS

Employees1,882

SectorIndustrials

Sector Strength63

IndustryAirlines, Airports & Air Services

Share Statistics

EPS (TTM)24.76

Shares Outstanding27,705,000

10 Day Avg. Volume62,749

30 Day Avg. Volume51,893

Financial Highlights & Ratios

PEG Ratio0.38

Price to Book (P/B)N/A

Price to Sales (P/S)24.92

Price to Cash Flow (P/CF)N/A

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$310.00

Price Target Upside14.06% Upside

Rating ConsensusHold

Number of Analyst Covering1

Grupo Aeroportuario del Sureste Business Overview & Revenue Model

Company DescriptionGrupo Aeroportuario del Sureste, S. A. B. de C. V. holds concessions to operate, maintain, and develop airports in the southeast region of Mexico. The company operates nine airports that are located in the cities of Cancún, Cozumel, Mérida, Huatulco, Oaxaca, Veracruz, Villahermosa, Tapachula, and Minatitlan. It provides aeronautical services, which include passenger, aircraft landing and parking, passenger walkway, and airport security services. The company also offers non-aeronautical services, such as leasing of space at its airports to retailers, restaurants, airlines, and other commercial tenants; catering, handling, and ground transportation services. In addition, it operates the Luis Muñoz Marín International Airport in San Juan, Puerto Rico; and holds concessions to operate the various airports in Colombia, including the Enrique Olaya Herrera Airport in Medellín and José María Córdova International Airport in Rionegro, the Los Garzones Airport in Montería, the Antonio Roldán Betancourt Airport in Carepa, the El Caraño Airport in Quibdó, and the Las Brujas Airport in Corozal. The company was incorporated in 1998 and is headquartered in Mexico City, Mexico.

How the Company Makes MoneyGrupo Aeroportuario del Sureste (ASR) generates revenue through a combination of aeronautical and non-aeronautical services. Aeronautical revenues include fees charged to airlines for the use of airport facilities, such as landing, takeoff, and parking fees. Non-aeronautical revenues are derived from commercial activities within the airports, including retail concessions, car parking, advertising, and leasing of airport space. The company also benefits from long-term concessions granted by the government, allowing it to manage and enhance the airport infrastructure. Strategic partnerships with airlines and commercial entities further contribute to its financial performance, enhancing service offerings and driving passenger traffic.

Grupo Aeroportuario del Sureste Financial Statement Overview

Summary

Grupo Aeroportuario del Sureste exhibits strong financial performance with impressive revenue and profitability growth. The balance sheet is robust, with a low debt-to-equity ratio and strong equity position. While there was a slight decline in free cash flow, the company's cash flow metrics remain healthy, supporting its overall financial strength.

Income Statement

Very Positive

The company has shown a strong revenue growth rate of 21.33% from 2023 to 2024. Gross profit margin is solid at 64.37%, indicating efficient cost management. Net profit margin also improved significantly to 43.25%, reflecting enhanced profitability. EBIT margin is robust at 55.92%, and EBITDA margin at 63.35%, both suggesting strong operational performance.

Balance Sheet

Positive

The debt-to-equity ratio is stable at 0.25, indicating conservative leverage. Return on equity is strong at 25.00%, reflecting good profitability from shareholder investments. The equity ratio is solid at 64.47%, showing a healthy balance between equity and total assets. Overall, the balance sheet portrays financial stability.

Cash Flow

Positive

Free cash flow growth was slightly negative at -7.48%, indicating potential short-term cash flow challenges. However, the operating cash flow to net income ratio is 1.15, showing strong cash generation relative to net income. The free cash flow to net income ratio is also favorable at 0.82, suggesting efficient cash utilization.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
31.33B	25.82B	25.31B	18.78B	12.62B
	Gross Profit
20.16B	15.56B	18.77B	12.26B	6.00B
	EBIT
17.52B	15.24B	14.70B	8.66B	3.28B
	EBITDA
19.84B	17.31B	17.00B	10.64B	5.05B
	Net Income Common Stockholders
13.55B	10.20B	9.99B	5.98B	1.97B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
20.08B	13.87B	13.17B	8.77B	5.19B
	Total Assets
84.11B	70.34B	70.92B	65.83B	60.41B
	Total Debt
13.36B	12.25B	15.20B	13.78B	13.90B
	Net Debt
-6.72B	-1.63B	2.03B	5.01B	8.71B
	Total Liabilities
22.50B	18.75B	21.90B	20.06B	18.72B
	Stockholders Equity
54.21B	44.95B	41.62B	37.18B	33.67B
Cash Flow		Free Cash Flow
11.17B	12.07B	10.68B	6.59B	-391.42M
	Operating Cash Flow
15.57B	13.45B	13.46B	10.26B	2.94B
	Investing Cash Flow
-3.06B	-2.45B	-3.79B	-3.41B	-2.88B
	Financing Cash Flow
-8.61B	-9.32B	-4.83B	-3.31B	-1.14B

Grupo Aeroportuario del Sureste Technical Analysis

Technical Analysis Sentiment

Negative

Last Price271.78

Price Trends

50DMA

276.27

Negative

100DMA

270.45

Positive

200DMA

277.56

Negative

Market Momentum

MACD

1.76

Positive

RSI

51.65

Neutral

STOCH

24.63

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ASR, the sentiment is Negative. The current price of 271.78 is below the 20-day moving average (MA) of 277.61, below the 50-day MA of 276.27, and below the 200-day MA of 277.56, indicating a bearish trend. The MACD of 1.76 indicates Positive momentum. The RSI at 51.65 is Neutral, neither overbought nor oversold. The STOCH value of 24.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ASR.

Grupo Aeroportuario del Sureste Risk Analysis

Grupo Aeroportuario del Sureste disclosed 56 risk factors in its most recent earnings report. Grupo Aeroportuario del Sureste reported the most risks in the “Macro & Political” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Grupo Aeroportuario del Sureste Peers Comparison

Overall Rating

UnderperformOutperform

Sector (62)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OMAB	82 Outperform	$3.70B	13.79	50.41%	5.42%	0.83%	-4.88%
ASR	76 Outperform	$8.06B	11.03	28.24%	2.13%	17.41%	28.94%
CAAP	72 Outperform	$2.81B	10.28	24.39%	―	8.85%	-8.41%
PAC	70 Outperform	$9.15B	19.37	42.32%	3.95%	-2.03%	-11.39%
Sector *	62 Neutral	$7.25B	12.39	3.08%	3.39%	3.63%	-14.32%

* Industrials Sector Average

Performance Comparison

ASR

Grupo Aeroportuario del Sureste

259.64

-60.13

-18.80%

OMAB

Grupo Aeroportuario Del Centro

73.27

-6.22

-7.82%

PAC

Grupo Aeroportuario del Pacifico

178.01

11.70

7.04%

CAAP

Corporacion America Airports SA

16.30

-1.31

-7.44%

Grupo Aeroportuario del Sureste Earnings Call Summary

Earnings Call Date: Feb 24, 2025 | % Change Since: 0.51% | Next Earnings Date: Apr 28, 2025

Earnings Call Sentiment Neutral

The earnings call reflected solid financial performance with strong revenue and EBITDA growth driven by Colombia and Puerto Rico, alongside significant infrastructure investments. However, challenges such as flat passenger traffic, international traffic declines, and ongoing Pratt & Whitney engine issues posed significant headwinds, particularly in Mexico.

Highlights

Revenue Growth Across Regions

Total revenues for the quarter increased 19% year-on-year to MXN 7.4 billion, supported by a strong performance in Colombia (30% increase), Mexico (mid-teen increase), and Puerto Rico (high 20% growth).

EBITDA and Margin Improvement

Consolidated EBITDA rose 23% year-on-year to over MXN 5 billion, with the adjusted EBITDA margin improving 200 basis points to 69.7%.

Strong Commercial Revenue Growth

Commercial revenues grew in the high single digits year-on-year, with notable increases in Puerto Rico (26%) and Colombia (31%).

Infrastructure Investments

Significant capital expenditure of MXN 2.5 billion for the quarter focused on expanding Terminal 1 at Cancun Airport and Terminal Oaxaca Airport, with expected completion in 2026.

Lowlights

Flat Passenger Traffic

Passenger traffic was effectively flat year-over-year, down 0.3%, with Mexico experiencing an 8% decline.

International Traffic Decline

International traffic saw declines from all regions, notably from the U.S. (8.8%), Europe (6.4%), South America (11.1%), and Canada (0.6%).

Pratt & Whitney Engine Issues

Ongoing engine restrictions affected domestic traffic, particularly impacting operations at Mexico City Airport.

Impact of Tulum Airport

Tulum Airport captured 1.2 million passengers from Cancun last year, expected to increase to 1.7 million, impacting Cancun's international traffic.

Company Guidance

During ASUR's Fourth Quarter 2024 Results Conference Call, various metrics and trends were highlighted, showcasing the company's performance across its operational regions. Total passenger traffic remained stable year-over-year, slightly declining by 0.3% to 17.7 million passengers, with a full-year figure reaching 71 million. The geographical breakdown revealed Colombia as the strongest market with a mid-teens year-on-year passenger traffic increase, driven by a 29% rise in international traffic and a 7% rise in domestic traffic. Puerto Rico followed with a nearly 10% total traffic increase, while Mexico faced an 8% decline. International traffic from regions like Europe, Canada, the U.S., and South America experienced declines ranging from 0.6% to 11.1%. On the financial front, total revenues excluding construction surged by 19% year-on-year to MXN 7.4 billion, with Colombia leading with a 30% revenue increase, followed by Mexico and Puerto Rico. EBITDA also rose by 23% to over MXN 5 billion, with an adjusted EBITDA margin improving by 200 basis points to 69.7%. Capital expenditures accelerated to MXN 2.5 billion for the quarter, focusing on key infrastructure projects like Cancun Airport's Terminal 1 expansion. The company expects traffic normalization by 2026 following various market adjustments and infrastructure developments.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.