NEW YORK (TheStreet) -- Grupo Aeroportuario del Centro Norte S.A.B (Nasdaq:OMAB) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, compelling growth in net income, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Highlights from the ratings report include:
- OMAB's very impressive revenue growth greatly exceeded the industry average of 10.9%. Since the same quarter one year prior, revenues leaped by 52.6%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Looking ahead, unless broad bear market conditions prevail, we still see more upside potential for this stock, despite the fact that it has already risen over the past year.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Transportation Infrastructure industry. The net income increased by 77.8% when compared to the same quarter one year prior, rising from $6.33 million to $11.25 million.
- OMAB's debt-to-equity ratio is very low at 0.21 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.75 is somewhat weak and could be cause for future problems.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Transportation Infrastructure industry and the overall market on the basis of return on equity, GRUPO AEROPORTUARIO DEL CENT has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
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