Grupo Aeroportuario del Pacifico SAB de CV (PAC, Financial) has experienced a notable uptick in its stock performance, with a market capitalization now standing at $8.69 billion. The current price of $172 reflects a 6.32% gain over the past week and an 11.07% gain over the past three months. This positive trajectory is underscored by the GF Value of $265.06, which suggests that the stock is significantly undervalued compared to its past GF Value of $272.85. Both the current and past GF Valuations indicate that PAC is significantly undervalued, presenting a potentially attractive opportunity for value investors.
Introduction to Grupo Aeroportuario del Pacifico
Grupo Aeroportuario del Pacifico SAB de CV operates within the transportation industry, focusing on the construction, development, and operation of airports in Mexico. The company's revenue is primarily derived from its Guadalajara segment, which is a significant contributor to its financial success. As the company continues to expand its operations, investors have taken notice of its robust financial health and market performance, which is reflected in the recent gains in its stock price.
Assessing PAC's Profitability
With a Profitability Rank of 10/10, PAC stands out as a highly profitable company within its industry. The operating margin of 45.51% is higher than 96.6% of its peers, indicating efficient management and strong profit generation capabilities. The company's return on equity (ROE) of 52.45% and return on assets (ROA) of 14.60% rank higher than 94.31% and 92.74% of industry companies, respectively. Additionally, the return on invested capital (ROIC) of 19.30% surpasses 92.43% of competitors. These impressive figures, coupled with a consistent track record of profitability over the past ten years, underscore PAC's financial strength and operational excellence.
Growth Prospects of PAC
PAC's Growth Rank is also at the maximum score of 10/10, reflecting its exceptional growth in revenue and profitability. The 3-Year Revenue Growth Rate per Share of 42.80% and the 5-Year Revenue Growth Rate per Share of 20.90% both rank higher than the vast majority of industry companies. While the Total Revenue Growth Rate (Future 3Y To 5Y Est) of 3.70% is more modest, it still ranks higher than 30.94% of companies. The 3-Year EPS without NRI Growth Rate of 64.50% and the 5-Year EPS without NRI Growth Rate of 19.50% further demonstrate PAC's strong earnings growth, which is expected to continue with an EPS Growth Rate (Future 3Y To 5Y Est) of 3.30%. These growth metrics suggest that PAC is not only growing rapidly but is also expected to maintain a steady pace of expansion in the future.
Investor Confidence in PAC
Notable investors have shown confidence in PAC's potential, with Jim Simons (Trades, Portfolio) holding 557,700 shares, accounting for 1.1% of the company. This endorsement from a respected investor adds to the positive sentiment surrounding PAC's market performance and future prospects.
Competitive Landscape
When compared to its competitors, PAC holds its own in the transportation industry. Grupo Aeroportuario del Sureste SAB de CV (MEX:ASURB, Financial) has a slightly higher market cap of $9.47 billion, while Grupo Aeroportuario del Centro Norte SAB de CV (MEX:OMAB, Financial) has a smaller market cap of $3.67 billion. Airports Of Thailand PLC (BKK:AOT, Financial) stands out with a significantly larger market cap of $25.07 billion. These comparisons highlight PAC's competitive position within the industry and its potential for further growth.
Conclusion
In summary, Grupo Aeroportuario del Pacifico SAB de CV's financial health and market performance have been impressive, with significant gains in stock price and a valuation that suggests it is significantly undervalued. The company's profitability and growth ranks are at the top of the industry, indicating strong management and promising growth prospects. Investor confidence, as seen through the holdings of Jim Simons (Trades, Portfolio), further validates the company's potential. When compared to its industry competitors, PAC's market performance and financial metrics demonstrate its ability to compete effectively and continue its upward trajectory. For value investors seeking opportunities in the transportation sector, PAC presents a compelling case for 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.
