Grupo Aeroportuario del Pacifico (PAC) AI Stock Analysis

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Grupo Aeroportuario del Pacifico

(NYSE:PAC)

Rating:73Outperform

Price Target:

$248.00

▲(10.75%Upside)

Grupo Aeroportuario del Pacifico's strong financial performance and positive earnings call sentiment are key strength drivers. However, technical analysis suggests potential short-term weakness, and valuation raises concerns about overvaluation. Despite these challenges, the company's robust cash flow and revenue growth provide a solid foundation.

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

Market Cap

$11.21B

Dividend Yield0.02%

Average Volume (3M)105.08K

Price to Earnings (P/E)24.1

Beta (1Y)1.20

Revenue Growth7.45%

EPS Growth-13.53%

CountryUS

Employees3,541

SectorIndustrials

Sector Strength94

IndustryAirlines, Airports & Air Services

Share Statistics

EPS (TTM)2.82

Shares Outstanding42,948,586

10 Day Avg. Volume85,159

30 Day Avg. Volume105,083

Financial Highlights & Ratios

PEG Ratio2.79

Price to Book (P/B)8.43

Price to Sales (P/S)0.00

P/FCF Ratio24.93

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$236.70

Price Target Upside5.70% Upside

Rating ConsensusModerate Sell

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 generates revenue primarily through the operation and management of its airport facilities. The company's revenue streams are diversified across several key areas: aeronautical services, which include landing fees, passenger charges, and aircraft parking fees; non-aeronautical services, such as retail concessions, parking lot operations, and advertising within the airport premises; and commercial leasing of spaces for shops, restaurants, and other businesses. PAC's financial performance is also supported by strategic partnerships with airlines and retail operators, enhancing its service offerings and customer experience. Additionally, the company benefits from regulatory frameworks and agreements that enable it to adjust fees and charges in response to market conditions, ensuring sustainable revenue growth.

Grupo Aeroportuario del Pacifico Earnings Call Summary

Earnings Call Date:Jul 22, 2025

(Q2-2025)

% Change Since: -1.65%|

Next Earnings Date:Oct 22, 2025

Earnings Call Sentiment Neutral

The earnings call presents a strong financial and operational performance with significant revenue and traffic growth. However, there are concerns over FX volatility, increased operational costs, and potential impacts from U.S. immigration policies, indicating a balanced outlook.

Q2-2025 Updates

Positive Updates

Revenue Growth

Revenues grew by 30.6% year-over- year, reaching MXN 8.2 billion, driven by a 26.4% increase in aeronautical revenues and 41.8% increase in non-aeronautical revenues.

Passenger Traffic Increase

Total passenger traffic reached 15.8 million, representing a 4.1% increase compared to the same quarter of 2024. 8 new routes were added this quarter.

EBITDA Improvement

EBITDA increased by 31.1%, reaching MXN 5.5 billion with an EBITDA margin of 67.1% excluding IFRIC-12.

Strong Financial Position

The company holds MXN 9.7 billion in cash and cash equivalents with a net debt-to-EBITDA ratio of 1.8x.

CapEx Execution

GAP executed capital investments of about MXN 12.8 billion, in line with their annual plans of MXN 13.3 billion.

Negative Updates

FX Volatility

Continued Peso depreciation, which averaged around 13.6% versus the second quarter of '24, affecting financial performance.

Increased Operational Costs

Higher operational expenses and maintenance expenses increased by 57.3% related to airfield improvements and new regulations.

U.S. Immigration Concerns

Concerns over restricted U.S. migration and enforcement policies, which may discourage travel among the BFR international passengers base, affecting approximately 38% of GAP's international traffic.

Company Guidance

During GAP's Second Quarter 2025 Conference Call, CEO Raul Revuelta highlighted key operational metrics, noting a 4.1% increase in total passenger traffic to 15.8 million compared to the same quarter in 2024. Revenue generation, excluding IFRIC-12, grew by 30.6% year-over-year to MXN 8.2 billion, driven by a 26.4% increase in aeronautical revenues and a 41.8% increase in non-aeronautical revenues. EBITDA rose by 31.1% to MXN 5.5 billion, maintaining an EBITDA margin of 67.1%. The company added 8 new routes in the quarter, enhancing international connections, particularly to Canada. GAP also executed capital investments of about MXN 12.8 billion in the first half of 2025, aligning with their annual plan. Despite macroeconomic challenges, GAP maintained a net debt-to-EBITDA ratio of 1.8x, holding MXN 9.7 billion in cash and cash equivalents as of June 30. The call reaffirmed GAP's commitment to its annual guidance and strategic expansion opportunities, while also addressing potential fluctuations in international traffic due to U.S. migration policies.

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.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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
EBITDA	18.11B	18.68B	16.10B	10.90B	5.82B
Net Income	8.61B	9.54B	9.01B	6.00B	1.97B
Balance Sheet
Total Assets	81.65B	67.44B	60.51B	55.32B	51.36B
Cash, Cash Equivalents and Short-Term Investments	13.47B	10.06B	12.37B	13.33B	14.44B
Total Debt	48.03B	40.62B	34.41B	27.92B	24.38B
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

Neutral

Last Price223.93

Price Trends

50DMA

227.87

Negative

100DMA

209.57

Positive

200DMA

194.93

Positive

Market Momentum

MACD

-0.98

Positive

RSI

44.29

Neutral

STOCH

39.88

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PAC, the sentiment is Neutral. The current price of 223.93 is below the 20-day moving average (MA) of 228.17, below the 50-day MA of 227.87, and above the 200-day MA of 194.93, indicating a neutral trend. The MACD of -0.98 indicates Positive momentum. The RSI at 44.29 is Neutral, neither overbought nor oversold. The STOCH value of 39.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 (61)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OMAB	78 Outperform	$5.20B	19.26	44.27%	0.05%	-10.13%	-6.82%
PAC	73 Outperform	$11.21B	24.08	47.69%	0.02%	7.45%	-13.53%
ASR	73 Outperform	$9.17B	14.44	28.86%	8.16%	5.67%	-9.58%
CAAP	68 Neutral	$3.32B	22.82	11.32%	―	6.45%	-64.13%
Sector *	61 Neutral	C$6.52B	7.65	2.76%	2.58%	6.48%	-23.55%

* Industrials Sector Average

Performance Comparison

PAC

Grupo Aeroportuario del Pacifico

222.46

73.87

49.71%

OMAB

Grupo Aeroportuario Del Centro

102.41

38.66

60.64%

ASR

Grupo Aeroportuario del Sureste

301.36

24.15

8.71%

CAAP

Corporacion America Airports SA

19.99

3.72

22.86%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Jul 25, 2025