Grupo Aeroportuario Del Centro (OMAB) AI Stock Analysis

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Grupo Aeroportuario Del Centro

(NASDAQ:OMAB)

82Outperform

Grupo Aeroportuario Del Centro is well-positioned for growth, as reflected by its strong financial performance and positive technical indicators. The company faces some challenges, such as domestic traffic decline and higher concession taxes, but its robust international growth and strategic expansions offset these issues. Reasonable valuation and attractive dividend yield further support a positive outlook.

Grupo Aeroportuario Del Centro (OMAB) vs. S&P 500 (SPY)

Market Cap

$4.35B

Dividend Yield4.61%

Average Volume (3M)80.16K

Price to Earnings (P/E)16.2

Beta (1Y)1.18

Revenue Growth0.83%

EPS Growth-4.88%

CountryUS

Employees1,159

SectorIndustrials

Sector Strength70

IndustryAirlines, Airports & Air Services

Share Statistics

EPS (TTM)5.59

Shares Outstanding42,543,194

10 Day Avg. Volume85,988

30 Day Avg. Volume80,158

Financial Highlights & Ratios

PEG Ratio3.01

Price to Book (P/B)N/A

Price to Sales (P/S)20.97

Price to Cash Flow (P/CF)N/A

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$86.00

Price Target Upside-4.58% Downside

Rating ConsensusModerate Buy

Number of Analyst Covering3

Grupo Aeroportuario Del Centro Business Overview & Revenue Model

Company DescriptionGrupo Aeroportuario Del Centro Norte (OMAB) is a leading Mexican airport operator that manages and operates a network of 13 airports in the central and northern regions of Mexico. The company focuses on providing high-quality airport services, including passenger and cargo services, airport facilities management, and commercial services within the airport premises. OMAB plays a crucial role in facilitating air travel and commerce within Mexico, contributing significantly to the country's transportation infrastructure.

How the Company Makes MoneyOMAB generates revenue primarily through aeronautical services, which include passenger charges, landing and parking fees for airlines, and other airport-related services. Additionally, the company earns income from non-aeronautical services, such as leasing space for retail shops, restaurants, and car rental services within airport terminals. OMAB also benefits from advertising revenues and parking fees. Strategic partnerships with airlines and commercial tenants help enhance the company's service offerings and revenue potential. Furthermore, OMAB may receive income from cargo handling and other auxiliary services, contributing to its diversified revenue streams.

Grupo Aeroportuario Del Centro Financial Statement Overview

Summary

Grupo Aeroportuario Del Centro demonstrates strong financial health with robust revenue growth and profitability. The income statement shows increasing margins, the balance sheet reflects a stable financial position, and cash flow generation is robust.

Income Statement

Very Positive

Grupo Aeroportuario Del Centro has demonstrated robust growth with a steady increase in revenue from 2020 to 2024. The company has maintained a strong Gross Profit Margin, increasing from approximately 46.9% in 2020 to 65.3% in 2024. The Net Profit Margin has also been healthy, with TTM figures showing significant profitability. EBIT and EBITDA margins are strong, reflecting efficient operational management. The Revenue Growth Rate has been impressive, particularly between 2021 and 2022, showcasing the company's ability to expand effectively.

Balance Sheet

Very Positive

The company's Balance Sheet reflects a solid financial position with a stable Debt-to-Equity ratio. While Total Debt has increased over the years, equity has also strengthened, resulting in a stable leverage position. The Return on Equity (ROE) is quite strong, indicating effective use of equity to generate profits. The Equity Ratio has remained relatively stable, suggesting a balanced approach to financing with equity and debt.

Cash Flow

Very Positive

Cash flow analysis reveals a strong ability to generate cash from operations, with Operating Cash Flow consistently growing. The Free Cash Flow has shown significant improvement since 2020, indicating effective capital management and investment strategies. The Operating Cash Flow to Net Income ratio is favorable, demonstrating efficient cash conversion. Free Cash Flow growth has been supported by disciplined capital expenditure management.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
15.07B	14.46B	11.93B	8.72B	5.37B
	Gross Profit
9.84B	9.51B	7.34B	5.15B	2.52B
	EBIT
8.08B	8.07B	6.06B	4.11B	1.72B
	EBITDA
8.84B	8.97B	6.78B	4.84B	2.35B
	Net Income Common Stockholders
4.93B	5.01B	3.90B	2.86B	1.09B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.66B	2.58B	3.34B	5.99B	2.96B
	Total Assets
27.23B	25.24B	23.07B	22.89B	18.14B
	Total Debt
11.46B	10.88B	10.39B	7.92B	4.71B
	Net Debt
9.80B	8.30B	7.06B	1.93B	1.75B
	Total Liabilities
16.69B	15.40B	14.52B	11.65B	7.31B
	Stockholders Equity
10.38B	9.67B	8.37B	11.06B	10.65B
Cash Flow		Free Cash Flow
5.88B	5.93B	2.08B	2.52B	-138.16M
	Operating Cash Flow
6.20B	6.33B	4.99B	4.45B	1.30B
	Investing Cash Flow
-2.51B	-2.79B	-2.75B	-1.79B	-1.32B
	Financing Cash Flow
-4.66B	-4.30B	-4.88B	292.27M	-528.89M

Grupo Aeroportuario Del Centro Technical Analysis

Technical Analysis Sentiment

Positive

Last Price90.13

Price Trends

50DMA

79.23

Positive

100DMA

76.34

Positive

200DMA

70.83

Positive

Market Momentum

MACD

2.25

Negative

RSI

70.85

Negative

STOCH

90.84

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OMAB, the sentiment is Positive. The current price of 90.13 is above the 20-day moving average (MA) of 80.38, above the 50-day MA of 79.23, and above the 200-day MA of 70.83, indicating a bullish trend. The MACD of 2.25 indicates Negative momentum. The RSI at 70.85 is Negative, neither overbought nor oversold. The STOCH value of 90.84 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for OMAB.

Grupo Aeroportuario Del Centro Risk Analysis

Grupo Aeroportuario Del Centro disclosed 61 risk factors in its most recent earnings report. Grupo Aeroportuario Del Centro reported the most risks in the “Legal & Regulatory” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Grupo Aeroportuario Del Centro Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OMAB	82 Outperform	$4.35B	16.19	50.41%	4.61%	0.83%	-4.88%
ASR	78 Outperform	$9.66B	12.82	25.76%	1.84%	9.99%	17.81%
LTM	77 Outperform	$9.25B	9.39	166.51%	0.87%	10.24%	68.75%
CAAP	72 Outperform	$3.09B	12.08	24.39%	―	8.85%	-8.41%
PAC	70 Outperform	$10.36B	21.92	42.32%	3.54%	-2.03%	-11.39%
Sector *	63 Neutral	$4.28B	11.33	5.43%	214.88%	4.12%	-8.65%
LUV	61 Neutral	$15.20B	31.42	5.63%	2.72%	3.26%	27.77%

* Industrials Sector Average

Performance Comparison

OMAB

Grupo Aeroportuario Del Centro

90.13

6.14

7.31%

PAC

Grupo Aeroportuario del Pacifico

205.38

28.00

15.79%

ASR

Grupo Aeroportuario del Sureste

319.99

-25.39

-7.35%

LUV

Southwest Airlines

26.49

0.27

1.03%

CAAP

Corporacion America Airports SA

19.34

2.42

14.30%

LTM

LATAM Airlines Group SA Sponsored ADR

30.50

5.78

23.38%

Grupo Aeroportuario Del Centro Earnings Call Summary

Earnings Call Date: Feb 24, 2025 | % Change Since: 13.80% | Next Earnings Date: Apr 28, 2025

Earnings Call Sentiment Positive

OMA showed strong growth in international traffic and commercial revenue, supported by infrastructure expansion and sustainability achievements. However, challenges include a decline in domestic traffic and increased concession tax expenses, with a cautious outlook due to macroeconomic volatility.

Highlights

Record International Passenger Traffic Growth

International passenger traffic grew significantly by 26.4% in the fourth quarter and 15% for the full year 2024 compared to 2023. This was a result of new routes and increased capacity to the U.S.

Strong Commercial Revenue Performance

Commercial revenues per passenger reached a record high of 60 pesos, a 17% increase compared to 2023. Restaurant revenues grew by 22%, VIP lounge revenues increased by 51%, and parking revenues rose by 33 million pesos.

Expansion and Development at Monterrey Airport

Significant infrastructure expansions at Monterrey Airport have increased passenger capacity to nearly 14 million annually, with plans to further expand to 16 million by early 2026.

Diversification Success

OMA Cargo grew by 22% and the industrial service revenue increased by 61% for the full year. Hotel services also saw a 20% revenue growth.

Level 3 Optimization Certification for Sustainability

All 13 OMA airports obtained Level 3 Optimization Certification on the Airport Carbon Accreditation Program, reflecting commitment to reducing carbon emissions.

Lowlights

Domestic Passenger Traffic Decline

Domestic passenger traffic declined by 3.5% for the full year 2024, highlighting challenges in the domestic market.

Concession Tax Increase Impact

Concession tax increased by 97% due to a rate increase from 5% to 9%, resulting in higher expenses.

Net Income Decrease

Consolidated net income decreased by 5.9% in the fourth quarter relative to the fourth quarter of 2023.

Challenging Macro Environment

The company acknowledges volatility in the macro environment which may impact future projections and operations.

Company Guidance

During the Grupo Aeroportuario del Centro Norte (OMA) fourth-quarter 2024 earnings call, guidance was provided with multiple metrics highlighted. Total passenger traffic across OMA's 13 airports increased by 4.6% year-over-year, fueled by a 1.5% rise in domestic traffic and a substantial 26.4% growth in international traffic. Financially, total aeronautical and non-aeronautical revenues grew by 13.6%, reaching Ps.3.3 billion for the quarter, with aeronautical revenue up by 11% and non-aeronautical revenue by 22%. The adjusted EBITDA for the year stood at Ps.9.1 billion, with a margin of 74.3%. The company invested Ps.951 million in capital expenditures during the quarter, primarily at Monterrey Airport, enhancing its capacity to nearly 14 million passengers annually. OMA also expects sustained growth in Monterrey's route network and is planning further investments to expand the airport's capacity to 16 million passengers by 2026.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.