Skip to Content

Grupo Aeroportuario del Sureste SAB de CV ADR ASR

Rating as of

Morningstar’s Analysis

Valuation
Currency in USD
Is it the right time to buy or sell?
Find out with Morningstar Premium
Is it the right time to buy or sell?
Find out with Morningstar Premium

1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Stewardship

PREMIUM

Sureste Faces a Tough Road in the Near Term, but We See a Pathway to Recovery in 2021

Analyst Note

| Brian Bernard, CFA, CPA |

Grupo Aeroportuario del Sureste reported weak second-quarter results in line with our expectations, showing the continued impact of the coronavirus pandemic. We’re maintaining our fair value estimate of $131 per ADR, as we continue to expect air travel demand to be challenged in 2020. Total revenue fell 56.6% year over year, largely due to weaker aeronautical (down 78%) and nonaeronautical (down 75.3%) growth. Passenger traffic fell 94% to 846 thousand passengers, with negative growth in domestic traffic (down 91.3%) and international traffic (down 98.5%). Air traffic in the quarter was subdued by the suspension of nonessential activities by local governments.

Read Full Analysis

Company Profile

Business Description

Based in Mexico City, Grupo Aeroportuario del Sureste operates nine airports in southeast Mexico under its government-granted concession plus one in Puerto Rico and six in Colombia. Mexico was 61% of 2019 passenger traffic total of nearly 55.7 million people, with Cancun alone accounting for 46%. Thanks to increased spending per passenger at Cancun, nonaeronautical revenue comprises 36% of total revenue, typically a larger percentage than at its two publicly traded peers, Pacifico and Centro Norte.

Contact
Bosque de Alisos Number 47A - 4th Floor, Bosques de las Lomas
Mexico City, DF, 05120, Mexico
T +52 5552840408
Sector Industrials
Industry Airports & Air Services
Most Recent Earnings Jun 30, 2020
Fiscal Year End Dec 31, 2020
Stock Type
Employees 1,555

Related