Central North Airport

Grupo Aeroportuario del Centro Norte SAB de CV is assigned a 5-star quantitative star rating, illustrating our stance that this share class offers a compelling opportunity for investors. The stock currently trades at a 16% discount to our quantitative fair value estimate of $112.64 per share, which is reinforced by this estimate's low uncertainty rating.

The company's profitability increases our quantitative valuation. Highly profitable companies are often more resilient in recessions and are likely to generate stronger future cash flows for shareholders. For example, the firm's earnings yield of 6.6% lies in the top 40% compared with peers globally. This suggests that it is generating substantial earnings relative to its share price, which contributes to our view that shares are cheap.

Alternatively, the company's valuation metrics are potentially concerning. A company's valuation metrics provide insights into the market's expectations for its future growth and profitability. The firm's book value yield of 11.0%, for example, sits in the bottom 10% globally. The market value of this company's shares looks expensive relative to the book (accounting) value of equity, which, despite our favorable price/fair value ratio, is a negative attribute.

The company's narrow economic moat rating suggests it should be able to maintain robust profitability for a decade or longer before competition erodes its advantage. In addition, the company's moderate financial health score is decent and doesn't seriously concern us with regard to financial distress.