Stock Research and Analysis

by Neal Dihora, CFA

Bulls Say

ASUR has a monopoly on southeast Mexico, forcing passengers to go through its airports when traveling to the region. The company is contracted by the Mexican government to operate its airports through 2048, when it can apply to extend the concessions.
ASUR invested in a venture that operates the Luis Muñoz Marin International Airport in Puerto Rico that could result in significant earnings growth.
ASUR's high degree of operating leverage generates large returns on each incremental passenger above a certain cost point. Read more 

Bears Say

ASUR runs a capital-intensive business. During the past five years, it has reinvested 18% of revenue in terminal improvement, runways, machinery, and equipment.
The Cancun airport accounts for nearly 75% of ASUR's passenger traffic, making the company highly dependent on the ability of local resorts to attract tourists.
Government confiscation of airport concessions or sale of new concessions in ASUR's geographic region could hurt operating results. Read more 

Management

Fernando Chico Pardo has been chairman of ASUR since 2007. He was also the CEO until May 2011 when he resigned, allowing then-CFO Adolfo Castro to take over the position. Castro has been the contact point for investors and we see minimal changes to   Read more 

Profile

Grupo Aeroportuario del Sureste, or ASUR, owns the rights to operate nine airports in southeast Mexico through 2048 and participates in a joint venture to operate the Luis   Read more 

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