Grupo Aeroportuario del Sureste, S. A. B. de C. V. (ASR): A Bull Case Theory 

We came across a bullish thesis on Grupo Aeroportuario del Sureste, S. A. B. de C. V. on Value investing subreddit by No_Hour6830. In this article, we will summarize the bulls’ thesis on ASR. Grupo Aeroportuario del Sureste, S. A. B. de C. V.’s share was trading at $319.48 as of October 8th. ASR’s trailing and forward P/E were 12.91 and 14.03 respectively according to Yahoo Finance.

Grupo Aeroportuario del Sureste (ASR) is a Mexican ADR listed on the NYSE, operating a portfolio of airports primarily in Mexico, as well as in Puerto Rico and Colombia, and recently expanding into U.S. airport retail through its acquisition of URW Airports, LLC, which controls retail operations in terminals at LAX, JFK, and ORD. Its crown jewel is Cancun International (CUN), complemented by over a dozen Mexican airports, 60% ownership of San Juan International (SJU), and 92.4% of Medellín (MDE), Colombia’s second-largest airport.

ASR has been a long-term compounder, delivering more than 21x price return since 2000, while maintaining a strong dividend track record. The company’s fundamentals are robust, with operating margins above 50%, ROIC of 21%, ROE of 29%, and ROA of 15%, supported by strong revenue growth, high operating leverage, low debt despite ongoing CUN expansion, and an overall strong balance sheet. Valuation remains attractive at 13x forward earnings and 19x free cash flow, even with elevated capex levels. The company’s moat is substantial, as airports are difficult to replicate and competition from alternative travel modes is limited.

A conservative DCF using mid-single-digit revenue growth, stable margins, and elevated capex suggests a fair value of $468 per share, nearly 50% above the current price, with upside exceeding $600 under slightly more optimistic assumptions. Key risks include potential government intervention in Mexico, lease expirations in Colombia, currency exposure, and key man risk due to Chairman Fernando Gerardo Chico Pardo’s 23.5% ownership. The business, however, benefits from a largely international customer base at CUN and SJU, insulating it from domestic economic volatility, and offers a compelling risk/reward profile for long-term investors.

Previously we covered a bullish thesis on Grupo Aeroportuario del Centro Norte, S.A.B. de C.V. (OMAB) by Chit Chat Stocks in May 2025, which highlighted strong passenger growth, high operating margins, and potential upside from a contract renewal. The stock has appreciated approximately 18.14% since our coverage. The thesis still stands. No_Hour6830 shares a similar thesis but emphasizes Grupo Aeroportuario del Sureste’s (ASR) broader footprint and U.S. airport retail expansion.

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Disclosure: None.