Corporacion America Airports Stock Discussion

Corporación América Airports' low P/E ratio persists due to predicted sliding earnings. Investors see limited potential for earnings improvement, not justifying a higher P/E ratio. This weak outlook may hinder a strong share price rise.

The company's decent ROE is overshadowed by its high debt level. Investors should ponder on the company's performance if borrowing becomes difficult due to changing credit markets. A high ROE without debt signifies a high-quality business.

The growth in Corporación América Airports' ROCE is impressive, indicating that the business is likely reaping the full benefits of its past investments. The strong shareholder returns suggest that investors are beginning to recognize these positive changes.

Caution is advised due to the company's high debt level used to boost returns despite a respectable - yet risky - ROE. High quality firms typically have high ROE with low debt.