Grupo Aeroportuario del Pacifico SAB De CV ADR (PAC)

Grupo Aeroportuario del Pacífico, S.A.B. de C.V. (PAC) Stock Overview

Company Profile

History and Background:

Grupo Aeroportuario del Pacífico, S.A.B. de C.V. (PAC) is a Mexican company that operates 12 international airports in Mexico's Pacific region. Founded in 1998, the company was privatized in 1999 and has been listed on the Mexican Stock Exchange (BMV) since 2006.

Core Business Areas:

PAC's primary business is the development, operation, and maintenance of its 12 airports. These airports handle over 40 million passengers annually and serve as important gateways for tourism and trade within Mexico.

Leadership and Corporate Structure:

PAC's current CEO is Raúl Revuelta Musalem. The company has a Board of Directors composed of 12 members and a Management Team consisting of seven executives overseeing various business areas.

Top Products and Market Share

Products and Offerings:

PAC's primary products are the services and facilities offered at its 12 airports. These include passenger terminals, runways, air traffic control services, cargo handling facilities, and commercial spaces.

Market Share:

PAC has a significant market share within Mexico's airport industry. As of 2023, the company handled over 30% of all passenger traffic in the country.

Product Performance and Competition:

PAC's airports are generally well-rated by passengers and consistently rank high in customer satisfaction surveys. The company faces competition from other airport operators in Mexico, including Grupo Aeroportuario del Centro Norte (OMA) and Grupo Aeroportuario del Sureste (ASUR).

Total Addressable Market

The global airport industry is estimated to be worth over $160 billion, with the Mexican market accounting for a significant portion. PAC operates within this large and growing market, with opportunities for further expansion in the future.

Financial Performance

Financial Statements Analysis:

PAC's recent financial statements show consistent revenue growth over the last few years. In 2022, the company reported revenue of $862 million and net income of $152 million. Profit margins are healthy, and EPS has been increasing steadily.

Year-over-Year Performance:

PAC's revenue and net income have grown by over 20% in the past year. This strong financial performance reflects the recovery of the travel industry after the pandemic.

Cash Flow and Balance Sheet Health:

PAC has a strong balance sheet with healthy cash flow. The company has a low debt-to-equity ratio and a good track record of managing its financial resources.

Dividends and Shareholder Returns

Dividend History:

PAC has a long history of paying dividends to shareholders. The company's current dividend yield is approximately 1.5%, and the payout ratio is around 30%.

Shareholder Returns:

Over the past 5 years, PAC's shareholders have enjoyed a total return of over 70%. This includes both capital appreciation and dividend income.

Growth Trajectory

Historical Growth:

PAC has experienced significant growth over the past 10 years. The company's revenue has more than doubled, and its net income has tripled.

Future Growth Projections:

PAC's management team expects the company to continue growing in the coming years. This growth will be driven by increased passenger traffic, expansion into new markets, and strategic acquisitions.

Recent Growth Initiatives:

PAC is actively pursuing several growth initiatives, including the development of new airport terminals, partnerships with airlines, and investments in technology.

Market Dynamics

The airport industry is dynamic and subject to various trends and challenges. These include changes in travel patterns, technological advancements, and economic fluctuations. PAC is well-positioned to adapt to these changes due to its strong financial position, experienced management team, and focus on innovation.

Competitors

PAC's key competitors in Mexico include:

• Grupo Aeroportuario del Centro Norte (OMA): Market share of approximately 25%
• Grupo Aeroportuario del Sureste (ASUR): Market share of approximately 15%

PAC has a competitive advantage due to its larger network of airports, strong financial performance, and focus on customer service.

Challenges and Opportunities

Challenges:

PAC faces several challenges, including increased competition, rising operating costs, and potential economic downturns.

Opportunities:

Opportunities for PAC include the expansion into new markets, development of new airport services, and partnerships with technology companies.

Recent Acquisitions

PAC has not made any significant acquisitions in the past 3 years.

AI-Based Fundamental Rating

Based on an AI-based analysis of PAC's financial health, market position, and future prospects, the company receives a rating of 8 out of 10.

This rating reflects PAC's strong financial performance, leading market position, and positive growth prospects. However, the company faces challenges from competition and economic factors.

Sources and Disclaimers

Sources:

• PAC's official website
• Bloomberg
• Reuters
• Yahoo Finance

Disclaimer:

This information is provided for informational purposes only and should not be considered investment advice. Please consult with a qualified financial advisor before making any investment decisions.