Grupo Aeroportuario del Pacifico (PAC) AI Stock Analysis

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Grupo Aeroportuario del Pacifico

(NYSE:PAC)

70Outperform

Grupo Aeroportuario del Pacifico showcases a strong financial performance with robust profitability and effective cash flow management. However, technical indicators point to a short-term bearish trend, which could affect stock price performance. The company's valuation is reasonable, with a good dividend yield, making it attractive for income-focused investors. The overall assessment reflects a solid financial foundation but suggests caution due to current market momentum.

Grupo Aeroportuario del Pacifico (PAC) vs. S&P 500 (SPY)

Market Cap

$9.31B

Dividend Yield3.83%

Average Volume (3M)92.34K

Price to Earnings (P/E)20.0

Beta (1Y)1.39

Revenue Growth-2.03%

EPS Growth-11.39%

CountryUS

Employees3,454

SectorIndustrials

Sector Strength61

IndustryAirlines, Airports & Air Services

Share Statistics

EPS (TTM)9.43

Shares Outstanding43,545,635

10 Day Avg. Volume117,575

30 Day Avg. Volume92,338

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)5.74

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

$207.50

Price Target Upside12.61% Upside

Rating ConsensusHold

Number of Analyst Covering2

Grupo Aeroportuario del Pacifico Business Overview & Revenue Model

Company DescriptionGrupo Aeroportuario del Pacífico, S.A.B. de C.V., together with its subsidiaries, manages, operates, and develops airports primarily in Mexico's Pacific region. It operates 12 airports in Guadalajara, Puerto Vallarta, Tijuana, San Josédel Cabo, Guanajuato (Bajío), Hermosillo, Mexicali, Los Mochis, La Paz, Manzanillo, Morelia, and Aguascalientes. The company was incorporated in 1998 and is headquartered in Guadalajara, Mexico.

How the Company Makes MoneyGrupo Aeroportuario del Pacífico primarily generates revenue through several key streams: aeronautical services, non-aeronautical services, and commercial activities. Aeronautical services include fees charged to airlines for the use of airport facilities, such as landing, parking, and passenger service charges. Non-aeronautical services encompass revenues from terminal space rentals, car parking, and ground transportation services. Additionally, PAC earns significant income from commercial activities, including leasing of retail spaces, food and beverage concessions, and advertising opportunities within its airports. The company also benefits from strategic partnerships with airlines, government entities, and commercial enterprises, which contribute to its financial performance.

Grupo Aeroportuario del Pacifico Financial Statement Overview

Summary

Grupo Aeroportuario del Pacifico exhibits strong financial health with solid revenue growth, robust profitability, and effective cash flow management. While leverage has increased slightly, the company maintains a healthy balance sheet and strong cash flow generation.

Income Statement

Positive

Grupo Aeroportuario del Pacifico demonstrates consistent revenue growth with strong gross and net profit margins. Despite a revenue decline in 2024, the company maintains solid profitability, indicating effective cost management. The EBIT and EBITDA margins are robust, underscoring operational efficiency.

Balance Sheet

Positive

The company has a moderate debt-to-equity ratio, reflecting a balanced approach to leverage. The return on equity is strong, indicating effective use of equity capital. However, equity ratio trends suggest a slight increase in leverage over time, which should be monitored.

Cash Flow

Very Positive

Cash flows show a positive trend, with significant growth in free cash flow, enhancing financial flexibility. The operating cash flow to net income ratio is favorable, indicating strong cash generation relative to earnings. The company effectively converts its earnings into cash.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
26.78B	33.22B	27.38B	19.01B	11.87B
	Gross Profit
20.67B	19.41B	14.54B	9.38B	4.10B
	EBIT
15.05B	15.14B	13.81B	8.86B	3.82B
	EBITDA
18.11B	18.68B	16.10B	10.90B	5.82B
	Net Income Common Stockholders
8.88B	9.54B	9.01B	6.00B	1.97B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
13.47B	10.06B	12.37B	13.33B	14.44B
	Total Assets
81.65B	67.44B	60.51B	55.32B	51.36B
	Total Debt
45.47B	40.62B	34.41B	27.92B	24.38B
	Net Debt
32.00B	30.57B	22.04B	14.59B	9.94B
	Total Liabilities
57.03B	46.50B	40.68B	34.89B	28.51B
	Stockholders Equity
22.35B	19.78B	18.64B	19.29B	21.79B
Cash Flow		Free Cash Flow
8.83B	3.49B	4.09B	6.15B	406.46M
	Operating Cash Flow
16.67B	13.93B	12.52B	11.10B	3.57B
	Investing Cash Flow
-8.78B	-11.09B	-8.48B	-4.97B	-3.22B
	Financing Cash Flow
-5.02B	-4.79B	-4.93B	-7.35B	6.29B

Grupo Aeroportuario del Pacifico Technical Analysis

Technical Analysis Sentiment

Negative

Last Price184.27

Price Trends

50DMA

189.54

Negative

100DMA

187.59

Negative

200DMA

175.93

Positive

Market Momentum

MACD

-0.50

Positive

RSI

48.70

Neutral

STOCH

26.65

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PAC, the sentiment is Negative. The current price of 184.27 is below the 20-day moving average (MA) of 187.74, below the 50-day MA of 189.54, and above the 200-day MA of 175.93, indicating a neutral trend. The MACD of -0.50 indicates Positive momentum. The RSI at 48.70 is Neutral, neither overbought nor oversold. The STOCH value of 26.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PAC.

Grupo Aeroportuario del Pacifico Risk Analysis

Grupo Aeroportuario del Pacifico disclosed 64 risk factors in its most recent earnings report. Grupo Aeroportuario del Pacifico reported the most risks in the “Finance & Corporate” 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 Pacifico Peers Comparison

Overall Rating

UnderperformOutperform

Sector (62)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OMAB	82 Outperform	$3.64B	13.79	50.41%	5.42%	0.83%	-4.88%
LTM	77 Outperform	$8.81B	9.02	166.51%	0.96%	10.24%	68.75%
ASR	76 Outperform	$7.98B	10.91	28.24%	2.15%	17.41%	28.94%
PAC	70 Outperform	$9.31B	19.98	42.32%	3.83%	-2.03%	-11.39%
ALK	68 Neutral	$6.17B	14.58	9.31%	―	12.56%	69.33%
Sector *	62 Neutral	$7.68B	13.06	3.21%	3.34%	3.62%	-14.40%
AAL	52 Neutral	$7.31B	8.58	-21.27%	―	2.70%	2.20%

* Industrials Sector Average

Performance Comparison

PAC

Grupo Aeroportuario del Pacifico

181.28

25.12

16.09%

ALK

Alaska Air

44.51

3.21

7.77%

OMAB

Grupo Aeroportuario Del Centro

78.33

3.09

4.11%

ASR

Grupo Aeroportuario del Sureste

265.76

-41.05

-13.38%

AAL

American Airlines

9.67

-3.48

-26.46%

LTM

LATAM Airlines Group SA Sponsored ADR

27.65

2.40

9.50%

Grupo Aeroportuario del Pacifico Earnings Call Summary

Earnings Call Date: Feb 20, 2025 | % Change Since: -8.53% | Next Earnings Date: Apr 24, 2025

Earnings Call Sentiment Neutral

The earnings call highlighted strong performance in commercial revenue growth and a solid financial position, despite challenges with passenger traffic and increased operational expenses. While there are significant achievements, the issues with engine inspections and revenue declines present notable challenges.

Highlights

Master Development Plan Approval

Approval of the 2025-2029 Master Development Plan for 12 Mexican airports, including a CapEx commitment of MXN 43.2 billion, with 40% invested in terminal buildings.

Commercial Revenue Growth

An exceptional 39% increase in non-aeronautical revenues driven by strategic expansion and business acquisitions.

Strong Financial Position

Maintained a healthy balance sheet with cash and cash equivalents totaling MXN 15.8 billion and a net debt-to-EBITDA ratio of 1.8x.

Cargo Business Performance

Cargo and freight flight facility consolidation contributed MXN 354 million to non-aeronautical revenue with EBITDA margins expected to reach 50-55%.

Lowlights

Passenger Traffic Decline

A 5.7% decline in passenger traffic due to ongoing inspections of Pratt & Whitney engines.

Aeronautical Revenue Decline

Aeronautical revenue declined by 3.8% due to lower passenger traffic and reaching only about 94% of the maximum tariff.

Operational Expenses Increase

Operational expenses increased by 21% due to consolidation of cargo business, employee-related expenses, and inflationary pressures.

Company Guidance

During the Q3 2024 earnings call for Grupo Aeroportuario del Pacifico (GAP), key metrics and guidance were discussed by executives. The company announced a total CapEx commitment of MXN 43.2 billion over five years, with 40% allocated to terminal buildings and a forecasted 54% increase in terminal space. The gradual implementation of a new tariff will span 15 months, reaching full implementation by January 2026. Despite a 5.7% decline in passenger traffic due to Pratt & Whitney engine inspections, non-aeronautical revenues surged by 39%, driven by strategic expansions and acquisitions, including a cargo facility contributing MXN 354 million. The company's EBITDA margin remained solid at 67%, with a net debt-to-EBITDA ratio of 1.8x. Growth projections for the following year anticipate a 5% increase in traffic, with full recovery from the engine recall expected by December 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.