Grupo Aeroportuario del Pacifico, S.A.B. de C.V. (PAC): A Bull Case Theory

We came across a bullish thesis on Grupo Aeroportuario del Pacífico, S.A.B. de C.V. (PAC) on Substack by Chit Chat Stocks. In this article, we will summarize the bulls’ thesis on PAC. Grupo Aeroportuario del Pacífico, S.A.B. de C.V. (PAC)'s share was trading at $205.54 as of May 2^nd. PAC’s trailing and forward P/E were 22.64 and 17.70 respectively according to Yahoo Finance.

Grupo Aeroportuario del Pacífico (PAC) continues to demonstrate strong fundamentals despite mixed tourism trends. In Q1, the company reported 4.2% passenger growth, with softness in international traffic to destinations like Cabo, Puerto Vallarta, and Montego Bay offset by resilient domestic travel. More notably, revenue growth of 26.1% in pesos (excluding construction) far outpaced traffic growth, signaling continued strength in pricing power and ancillary services. Although operating margins have declined slightly in recent years, PAC still posted a healthy 53.5% margin over the last twelve months. Rising costs for employees, maintenance, and concession taxes are worth watching, especially under the new five-year contract with the Mexican government now in effect, but they do not currently threaten the long-term trajectory. Revenue per passenger remains on an upward trend, and double-digit earnings growth remains a realistic outlook. With 15.7 billion pesos in LTM operating income and trading at just 15x EV/EBIT, PAC remains undervalued relative to its quality and dominant market position. Even with a potential 2025 tourism slowdown, the company is well-positioned to benefit from secular travel demand, infrastructure expansion, and improved monetization of passenger traffic. The business remains a long-term winner in Latin America’s airport infrastructure landscape.

Grupo Aeroportuario del Pacífico, S.A.B. de C.V. (PAC) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 5 hedge fund portfolios held PAC at the end of the fourth quarter which was 8 in the previous quarter. While we acknowledge the risk and potential of PAC as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than PAC but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article was originally published at Insider Monkey.