✈️ Grupo Aeroportuario Centro Norte manages 13 airports in central and northern Mexico and two hotels.
📈 The company has shown strong growth in revenues and profits, even generating profits in 2020.
✅ It has a high net margin, low debt, and a dividend yield of over 6%.
⚠️ The risk is medium because aeronautical revenues are regulated by the government.
@Invierteygana:
“Grupo Aeroportuario Centro Norte is a manager of Mexican airports. It trades on the Mexican Stock Exchange and on the NASDAQ. It manages 13 airports in the central and northern zone of Mexico and two hotels: the NH of the Mexico City airport and the Hilton of the Monterrey airport. Its revenue distribution is as follows, where the particularity is that it has income from construction services. 62% of the revenues are from airport services; here, the airlines pay for using the airport and its services. 18% comes from the management of the two hotels and from the rental of the airport spaces, such as stores, bars, restaurants, parking, etc. We see how all areas have significant growth in sales, so it is normal that we see strong growth in revenues, also in profits. It even generated profits in 2020, a year in which the planes were on the ground. The company has a great net margin, low debt, and a dividend yield of over 6%. In addition, it trades quite below its reasonable P/E ratio. The reasonable P/E ratio of an airport manager is usually 18 because they are monopolies and stable businesses, and in this case, there is also growth, a much more solid business than that of an airline. Despite this, I consider the risk to be medium since the aeronautical revenues are regulated by the government, and the company may have to lower prices by law, as happened in 2023.”
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