Stock Research and Analysis

by Neal Dihora, CFA

Bulls Say

ASUR has a monopoly on southeast Mexico through at least 2048, forcing passengers to go through its airports when traveling to the region.
ASUR invested in a venture that operates the Luis Muñoz Marin International Airport in Puerto Rico, which 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. It could use additional cash for further joint ventures or acquisitions. 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 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 CEO until May 2011 when he stepped down, allowing CFO Adolfo Castro to take over the position. Chico Pardo owns 12.6% of ASUR's total capital stock. Castro has been the contact point   Read more 

Profile

Grupo Aeroportuario del Sureste, or ASUR, was created in 1998 following a decision by the Mexican government to privatize some of its airports. ASUR owns the rights to operate   Read more 

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