Grupo Aeroportuario del Centro Norte SAB de CV (OMAB, Financial), a prominent player in the transportation industry, has recently witnessed a notable shift in its stock performance. Over the past week, the stock price has decreased by 3.53%, settling at $76.06. However, looking at a broader timeline, OMAB has experienced a significant increase of 14.12% over the past three months. This growth is underscored by the current GF Value of $112.68, suggesting that the stock is significantly undervalued. This valuation has remained consistent from three months ago, indicating a steady recognition of the stock's potential despite market fluctuations.
Overview of Grupo Aeroportuario del Centro Norte
Grupo Aeroportuario del Centro Norte operates key airports in central Mexico, with Monterrey Airport being its largest, handling nearly half of the company's total passengers. The firm's operations extend beyond airport management to include the running of two hotels and an industrial park, diversifying its revenue streams and enhancing its business resilience. This strategic positioning allows OMAB to capitalize on both aviation and non-aviation sectors, bolstering its market presence in the transportation industry.
Assessing OMAB's Profitability
OMAB stands out in its sector with a Profitability Rank of 10/10, placing it at the top tier of the industry. The company boasts an Operating Margin of 47.75%, higher than 97.1% of its peers. Additionally, its Return on Equity (ROE) of 11.36% and Return on Assets (ROA) of 4.28% both surpass the majority of competitors, indicating efficient management and profitable operations. The Return on Invested Capital (ROIC) stands at 6.16%, further highlighting OMAB's ability to generate favorable returns from its investments. These metrics not only reflect the company's current financial health but also its consistent profitability over the past decade.
Growth Trajectory of OMAB
OMAB's Growth Rank is an impressive 10/10, signaling strong future prospects. The company has demonstrated robust growth in revenue and EPS, with a 3-Year Revenue Growth Rate per Share of 39.60% and a 5-Year Rate of 14.20%. Looking ahead, revenue is expected to grow by 9.90% and EPS by 7.35% over the next 3 to 5 years. These projections are supported by a history of substantial EPS growth rates of 70.00% over three years and 13.70% over five years, underscoring OMAB's capacity to expand its earnings significantly.
Significant Shareholders and Market Position
OMAB's stock is held by notable investors including Jim Simons, who owns 216,500 shares, representing 0.45% of the company, and Jeremy Grantham (Trades, Portfolio) with 10,078 shares, or 0.02%. These holdings reflect the confidence of seasoned investors in OMAB's market strategy and financial health.
Competitive Landscape
In comparison to its peers, OMAB holds a strong position within the industry. Grupo Aeroportuario del Pacifico SAB de CV (MEX:GAPB, Financial) and Grupo Aeroportuario del Sureste SAB de CV (MEX:ASURB, Financial) have market caps of $8.38 billion and $9.82 billion, respectively, while Airports Of Thailand PLC (BKK:AOT, Financial) stands at $24.74 billion. Despite the larger sizes of these competitors, OMAB's superior profitability and growth metrics highlight its competitive edge and operational efficiency.
Conclusion
In summary, Grupo Aeroportuario del Centro Norte's financial health and strategic market position paint a promising picture for potential investors. The company's stock performance, particularly the significant undervaluation indicated by the GF Value, combined with robust profitability and growth prospects, positions OMAB as an attractive investment opportunity. Comparing these strengths with its competitors further emphasizes OMAB's solid standing in the transportation industry, making it a noteworthy candidate for portfolio consideration.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
