Grupo Aeroportuario del Pacifico SAB de CV (PAC, Financial) has recently been in the spotlight, drawing interest from investors and financial analysts due to its robust financial stance. With shares currently priced at $118.5, Grupo Aeroportuario del Pacifico SAB de CV has witnessed a daily loss of 27.58%, marked against a three-month change of -37.26%. A thorough analysis, underlined by the GF Score, suggests that Grupo Aeroportuario del Pacifico SAB de CV is well-positioned for substantial growth in the near future.
Decoding the GF Score
The GF Score is a stock performance ranking system developed by GuruFocus using five aspects of valuation, which has been found to be closely correlated to the long-term performances of stocks by backtesting from 2006 to 2021. The stocks with a higher GF Score generally generate higher returns than those with a lower GF Score. Therefore, when picking stocks, investors should invest in companies with high GF Scores. The GF Score ranges from 0 to 100, with 100 as the highest rank.
Grupo Aeroportuario del Pacifico SAB de CV has been assigned the following ranks:
- Financial strength rank: 8/10
- Profitability rank: 9/10
- Growth rank: 10/10
- GF Value rank: 10/10
- Momentum rank: 10/10
Each one of these components is ranked and the ranks also have positive correlation with the long term performances of stocks. The GF score is calculated using the five key aspects of analysis. Through backtesting, we know that each of these key aspects has a different impact on the stock price performance. Thus, they are weighted differently when calculating the total score. With high ranks across all categories, GuruFocus assigned Grupo Aeroportuario del Pacifico SAB de CV the GF Score of 98 out of 100, which signals the highest outperformance potential.
Understanding Grupo Aeroportuario del Pacifico SAB de CV's Business
Grupo Aeroportuario del Pacifico SAB de CV, with a market cap of $5.99 billion and sales of $1.68 billion, is engaged in the construction, development, and operation of airports in Mexico. The company's segments include Guadalajara; Tijuana; Puerto Vallarta; San Jose del Cabo; Montego Bay; Hermosillo; Guanajuato and Other Airports. It generates maximum revenue from the Guadalajara segment. The company's operating margin stands impressively at 48.32%, indicating its efficiency in controlling costs relative to its total sales.
Financial Strength Breakdown
According to the Financial Strength rating, Grupo Aeroportuario del Pacifico SAB de CV's robust balance sheet exhibits resilience against financial volatility, reflecting prudent management of capital structure.
The Interest Coverage ratio for Grupo Aeroportuario del Pacifico SAB de CV stands impressively at 6.77, underscoring its strong capability to cover its interest obligations. This robust financial position resonates with the wisdom of legendary investor Benjamin Graham, who favored companies with an interest coverage ratio of at least 5.
With a favorable Debt-to-Revenue ratio of 0, Grupo Aeroportuario del Pacifico SAB de CV's strategic handling of debt solidifies its financial health.
Profitability Rank Breakdown
The Profitability Rank shows Grupo Aeroportuario del Pacifico SAB de CV's impressive standing among its peers in generating profit.
Furthermore, Grupo Aeroportuario del Pacifico SAB de CV's Gross Margin has seen a consistent rise over the past five years, as evidenced by the data: 2018: 53.69; 2019: 55.22; 2020: 38.38; 2021: 51.54; 2022: 55.41. This trend underscores the company's growing proficiency in transforming revenue into profit.
The Piotroski F-Score confirms Grupo Aeroportuario del Pacifico SAB de CV's solid financial situation based on Joseph Piotroski's nine-point scale, which measures a company's profitability, funding and operating efficiency.
Grupo Aeroportuario del Pacifico SAB de CV's strong Predictability Rank of 4.0 stars out of five underscores its consistent operational performance, providing investors with increased confidence.
Growth Rank Breakdown
Ranked highly in Growth, Grupo Aeroportuario del Pacifico SAB de CV demonstrates a strong commitment to expanding its business.
The company's 3-Year Revenue Growth Rate is 20.4%, which outperforms better than 81.23% of 911 companies in the Transportation industry.
Moreover, Grupo Aeroportuario del Pacifico SAB de CV has seen a robust increase in its earnings before interest, taxes, depreciation, and amortization (EBITDA) over the past few years. Specifically, the three-year growth rate stands at 19.5, and the rate over the past five years is 11.6. This trend accentuates the company's continued capability to drive growth.
Conclusion
With its strong financial strength, profitability, and growth metrics, the GF Score highlights Grupo Aeroportuario del Pacifico SAB de CV's unparalleled position for potential outperformance. This comprehensive analysis underscores the company's robust financial health and growth potential, making it a compelling investment opportunity for value investors.
GuruFocus Premium members can find more companies with strong GF Scores using the following screener link: GF Score Screen
