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Grupo Aeroportuario Del Pacifico (PAC)
NYSE:PAC

Grupo Aeroportuario del Pacifico (PAC) AI Stock Analysis

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Grupo Aeroportuario del Pacifico

(NYSE:PAC)

Rating:73Outperform
Price Target:
$259.00
▲(8.86%Upside)
Grupo Aeroportuario del Pacifico scores highly due to its strong financial health, characterized by robust profitability and effective cash flow management. The technical indicators suggest bullish momentum, though potential overbought conditions warrant caution. Valuation is moderate, with a good dividend yield supporting the score.

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

Grupo Aeroportuario del Pacifico Business Overview & Revenue Model

Company DescriptionGrupo Aeroportuario del Pacífico (PAC) is a leading Mexican company that operates and manages airport facilities across the Pacific region of Mexico. The company is responsible for the administration, operation, and development of a network of airports, which includes both domestic and international terminals. PAC aims to provide efficient and high-quality services to passengers, airlines, and other stakeholders, ensuring smooth airport operations and enhancing travel experiences.
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 Earnings Call Summary

Earnings Call Date:Apr 28, 2025
(Q3-2024)
|
% Change Since: 17.81%|
Next Earnings Date:Jul 28, 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.
Q3-2024 Updates
Positive Updates
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%.
Negative Updates
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.

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
78
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
75
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
82
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
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
33.66B26.78B33.22B27.38B19.01B11.87B
Gross Profit
20.22B20.67B19.41B14.54B9.38B4.10B
EBIT
15.76B15.05B15.14B13.81B8.86B3.82B
EBITDA
19.07B18.11B18.68B16.10B10.90B5.82B
Net Income Common Stockholders
9.00B8.61B9.54B9.01B6.00B1.97B
Balance SheetCash, Cash Equivalents and Short-Term Investments
16.23B13.47B10.06B12.37B13.33B14.44B
Total Assets
84.23B81.65B67.44B60.51B55.32B51.36B
Total Debt
0.0048.03B40.62B34.41B27.92B24.38B
Net Debt
-16.23B34.56B30.57B22.04B14.59B9.94B
Total Liabilities
56.80B57.03B46.50B40.68B34.89B28.51B
Stockholders Equity
25.05B22.35B19.78B18.64B19.29B21.79B
Cash FlowFree Cash Flow
8.47B8.83B3.49B4.09B6.15B406.46M
Operating Cash Flow
16.62B16.67B13.93B12.52B11.10B3.57B
Investing Cash Flow
-8.94B-8.78B-11.09B-8.48B-4.97B-3.22B
Financing Cash Flow
-3.83B-5.02B-4.79B-4.93B-7.35B6.29B

Grupo Aeroportuario del Pacifico Technical Analysis

Technical Analysis Sentiment
Positive
Last Price237.93
Price Trends
50DMA
205.89
Positive
100DMA
196.63
Positive
200DMA
185.02
Positive
Market Momentum
MACD
8.51
Negative
RSI
71.30
Negative
STOCH
91.63
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PAC, the sentiment is Positive. The current price of 237.93 is above the 20-day moving average (MA) of 226.26, above the 50-day MA of 205.89, and above the 200-day MA of 185.02, indicating a bullish trend. The MACD of 8.51 indicates Negative momentum. The RSI at 71.30 is Negative, neither overbought nor oversold. The STOCH value of 91.63 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 1 New Risks
1.
Increasing scrutiny and evolving expectations from customers, regulators, investors and other stakeholders with respect to our environmental, social and governance practices may impose additional costs on us or expose us to new or additional risks. Q4, 2023

Grupo Aeroportuario del Pacifico Peers Comparison

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
ASASR
80
Outperform
$9.71B13.2425.76%6.83%9.99%17.81%
77
Outperform
$5.03B18.6944.27%3.81%-10.13%-6.82%
PAPAC
73
Outperform
$12.12B25.9036.66%4.60%-2.56%-14.94%
LTLTM
71
Outperform
$11.72B10.84138.69%1.65%6.41%49.58%
ALALK
69
Neutral
$6.37B19.078.90%20.82%47.79%
66
Neutral
$4.51B12.295.40%248.53%4.14%-12.41%
AAAAL
61
Neutral
$7.77B13.60-21.27%1.92%36.07%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
PAC
Grupo Aeroportuario del Pacifico
237.93
82.25
52.83%
ALK
Alaska Air
51.73
10.38
25.10%
OMAB
Grupo Aeroportuario Del Centro
103.70
34.13
49.06%
ASR
Grupo Aeroportuario del Sureste
318.90
32.02
11.16%
AAL
American Airlines
11.76
0.27
2.35%
LTM
LATAM Airlines Group SA Sponsored ADR
38.73
14.01
56.67%
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.