$Central North Airport (OMAB.US)$ Central North Airport (OMA...

Central North Airport (OMAB) It is a Mexican company that went public in 2006 with an IPO price of 18 yuan, and the current price is 53.3.

The recent dividend yield of 12.3% is very prominent. According to my research, the dividend payout in 2022 is significantly higher than in previous years, raising questions about its sustainability.

Except for 2020, the gross margin has always been between 55% and 65%, and the return on net assets has been between 26% and 37%, which is very attractive.

In the past 5 years, revenue has grown consistently except for a 37% decline in 2020. Operating profit and net income both experienced significant declines in 2020 but partially recovered in 2021. In 2022 Q1, there was significant growth in revenue, operating profit, and net income.

Interest expense accounts for 13% of operating profit, which is a moderate burden.

The debt-to-assets ratio has increased slightly from 49% to 51%. Net assets have been accumulating at a rate of over 10 billion pesos per year. In 2022 Q1, net assets decreased by 32%, or 3.57 billion, which is likely due to dividend payments. Goodwill and other intangible assets amount to 11.922 billion, accounting for a slightly higher proportion of 7.665 billion in net assets. Long-term loans amount to 7.488 billion, and they increased by 2.5 billion in 2022 Q1. It gives the impression that borrowing money is being used to pay dividends, with a high proportion relative to net assets.

Except for 2020, the cash flow from operating activities is generally twice that of the net investment. There are a lot of profits. Maybe this is the confidence to borrow money and pay dividends?

Currently, the PE ratio is 18.6, the PE ratio TTM is 16.1, which is not high compared to the growth rate. It is advisable to choose cautiously (⭐️).