Grupo Aeroméxico, S.A.B. de C.V. Fundamental Analysis
Grupo Aeroméxico, S.A.B. de C.V. Fundamental Analysis
Grupo Aeroméxico, S.A.B. de C.V. (AERO) shows weak financial fundamentals with a PE ratio of 6.86, profit margin of 6.18%, and ROE of -50.82%. The company generates $5.5B in annual revenue with weak year-over-year growth of -4.30%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 47.3/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze AERO's fundamental strength across five key dimensions:
Efficiency Score
WeakAERO struggles to generate sufficient returns from assets.
Valuation Score
ExcellentAERO trades at attractive valuation levels.
Growth Score
WeakAERO faces weak or negative growth trends.
Financial Health Score
ModerateAERO shows balanced financial health with some risks.
Profitability Score
WeakAERO struggles to sustain strong margins.
Key Financial Metrics
Is AERO Expensive or Cheap?
P/E Ratio
AERO trades at 6.86 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, AERO's PEG of -0.07 indicates potential undervaluation.
Price to Book
The market values Grupo Aeroméxico, S.A.B. de C.V. at -4.02 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -0.43 times EBITDA. This is generally considered low.
How Well Does AERO Make Money?
Net Profit Margin
For every $100 in sales, Grupo Aeroméxico, S.A.B. de C.V. keeps $6.18 as profit after all expenses.
Operating Margin
Core operations generate 15.17 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-50.82 in profit for every $100 of shareholder equity.
ROA
Grupo Aeroméxico, S.A.B. de C.V. generates $4.72 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Grupo Aeroméxico, S.A.B. de C.V. produces operating cash flow of $937.50M, showing steady but balanced cash generation.
Free Cash Flow
Grupo Aeroméxico, S.A.B. de C.V. generates strong free cash flow of $599.88M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $4.11 in free cash annually.
FCF Yield
AERO converts 25.58% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
6.86
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.07
vs 25 benchmark
P/B Ratio
Price to book value ratio
-4.02
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.42
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-6.83
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.65
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.51
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.21
vs 25 benchmark
How AERO Stacks Against Its Sector Peers
| Metric | AERO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 6.86 | 25.99 | Better (Cheaper) |
| ROE | -50.82% | 1259.00% | Weak |
| Net Margin | 6.18% | -34891.00% (disorted) | Weak |
| Debt/Equity | -6.83 | 0.74 | Strong (Low Leverage) |
| Current Ratio | 0.65 | 9.71 | Weak Liquidity |
| ROA | 4.72% | -1482943.00% (disorted) | Weak |
AERO outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Grupo Aeroméxico, S.A.B. de C.V.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
305.44%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
117.85%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
4250.89%
Industry Style: Cyclical, Value, Infrastructure
High Growth