Current Analysis: Grupo Aeroportuario Del Pacifico

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Grupo Aeroportuario del Pacifico SAB de CV (PAC) is engaged in the construction, development, and operation of airports in Mexico.

The company's segments are Guadalajara; Tijuana; Puerto Vallarta; San Jose del Cabo; Montego Bay; Hermosillo; Guanajuato and Other Airports. It generates maximum revenue from the Guadalajara segment.

The company was incorporated in 1998 and is headquartered in Guadalajara, Mexico.

Three key data points gauge Grupo Aeroportuario del Pacifico SAB de CV or any dividend-paying firm.

The key three are:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money.

PAC Price

Over the past year, PAC’s share price dropped about 18.25% from $141.82 to $115.94 as of Tuesday’s market close.

If PAC stock trades in the range of $100.00 to $150.00 this next year, its recent $115.94 share price might rise to $140.00 by next year. Of course, PAC’s price could drop about the same $24.06 estimated amount or more.

My upside estimate of $24.06, however, is $43.73 below the median of annual target estimates from 7 analysts tracing Grupo Aeroportuario del Pacifico SAB de CV for brokers

PAC Dividend

Grupo Aeroportuario del Pacifico has paid variable quarterly dividends since May 15, 2006. PAC’s most recent Q dividend, paid October 23 to shareholders of record October 10th, was $2.06

That and three more Qs measures up to $9.35 annually for a forward looking yield of 8.06%.

PAC Returns

Add the $9.35 anticipated annual dividend to PAC’s estimated $24.06 possible price upside, reveals a $33.41 estimated gross gain per share for the coming year.

At Tuesday’s $115.95 closing price, a little over $1000 would buy 9 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, might cost us about $1.11 per share.

Subtracting that likely $1.11 brokerage cost from my estimated $33.41 estimated gross gain per share makes a net gain of $32.30 X 9 shares = $290.70 or about a 29% net gain.

This might be too soon to pounce on PAC shares. And beware, Grupo Aeroportuario del Pacifico, is a Mexican Pacific Coast airports operator and has paid variable now quarterly dividends for about 17 years. Furthermore, the estimated $93.50. annual dividend from $1000 invested comes in $22.44 less than the recent $115.94 single share price.  Wait for PAC price to drop to $100 before you pounce.

Remember the true value of any stock is best realized through personal ownership of shares.


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Disclaimer:   This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a ...

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