Grupo Aeroportuario del Pacifico (ADR) (PAC), Grupo Aeroportuario del Centro Nort(ADR) (OMAB), Grupo Aeroportuario del Sureste (ADR) (ASR): Three Geographical Monopolies in Mexican Airports

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Consensus estimates project a 4.4% annual growth rate over the next five years. Expected to considerably underperform its peers, I feel quite discouraged to buy. Furthermore, its valuation makes it even less attractive as it trades at 21.3 times its earnings. Overvalued and underperforming, the company hasn’s got much, in my view, against its two aforementioned peers.

Bottom line

Trading just around the industry average valuation while offering compelling growth prospects and juicy dividend yields, backed by strong cash flows and a monopoly status that should last at least another 35 years, I’d recommend
buying Grupo Aeroportuario del Pacifico (ADR) (NYSE:PAC) and Grupo Aeroportuario del Centro Nort(ADR) (NASDAQ:OMAB)before they appreciate even further.

Damian Illia has no position in any stocks mentioned. The Motley Fool recommends Grupo Aeroportuario del Pacific S.A.B (ADR) and Grupo Aeroportuario del Sureste (ADR).

The article 3 Geographical Monopolies in Mexican Airports originally appeared on Fool.com.

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