Pacific Airport

Grupo Aeroportuario del Pacifico SAB de CV receives a 4-star quantitative star rating, illustrating our stance that this share class offers a somewhat attractive opportunity for investors. The stock currently trades at a 14% discount to our quantitative fair value estimate of $239.40 per share; however, some caution is warranted due to this estimate's medium uncertainty rating.

The firm's solid growth bolsters our valuation estimate. Consistent revenue and earnings growth indicates a company's potential for increased market share and profitability. For example, the firm's revenue 3-year growth of 10.7% falls in the top 40% globally. Robust trailing three-year revenue growth portends a favorable future trajectory, which contributes to our view that shares are cheap.

Conversely, the firm'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 enterprise value to revenue ratio of 6.5, for example, lies in the top 20% compared with peers globally. This overstates the long-term cash flow growth potential of the organization. Despite our favorable price/fair value ratio, this characteristic 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.