Trade-Ideas: Grupo Aeroportuario Del Sureste SAB De CV (ASR) Is Today's New Lifetime High Stock

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.

Trade-Ideas LLC identified Grupo Aeroportuario del Sureste SAB de CV ( ASR) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Grupo Aeroportuario del Sureste SAB de CV as such a stock due to the following factors:

  • ASR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $9.7 million.
  • ASR has traded 1,738 shares today.
  • ASR is trading at a new lifetime high.

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More details on ASR:

Grupo Aeroportuario del Sureste, S.A.B. de C.V. holds concessions to operate, maintain, and develop airports in the southeast region of Mexico. ASR has a PE ratio of 26.1. Currently there are 2 analysts that rate Grupo Aeroportuario del Sureste SAB de CV a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for Grupo Aeroportuario del Sureste SAB de CV has been 52,600 shares per day over the past 30 days. Grupo Aeroportuario del Sureste SAB de CV has a market cap of $4.5 billion and is part of the services sector and transportation industry. Shares are up 14.9% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Grupo Aeroportuario del Sureste SAB de CV as a buy. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • ASR's debt-to-equity ratio is very low at 0.17 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 8.23, which clearly demonstrates the ability to cover short-term cash needs.
  • The gross profit margin for GRUPO AEROPORTUARIO SURESTE is rather high; currently it is at 52.78%. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, ASR's net profit margin of 26.62% significantly outperformed against the industry.
  • GRUPO AEROPORTUARIO SURESTE has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past two years. However, we anticipate this trend to reverse over the coming year. During the past fiscal year, GRUPO AEROPORTUARIO SURESTE reported lower earnings of $5.16 versus $5.85 in the prior year. This year, the market expects an improvement in earnings ($5.75 versus $5.16).
  • The revenue fell significantly faster than the industry average of 29.6%. Since the same quarter one year prior, revenues fell by 24.4%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period, despite the company's weak earnings results. The stock's price rise over the last year has driven it to a level which is somewhat expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.

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