Grupo Aeroportuario del Centro Norte, S.A.B. de C.V. (NASDAQ: OMAB; BMV: OMA), also known as Central North Airport Group or OMA, has reported a 6.6% decrease in passenger traffic for August 2024 compared to the same month in the previous year.
The Mexico-based airport operator noted that domestic traffic fell by 8.7%, while international traffic saw an increase of 11.1%. However, excluding the impact of Hurricane Otis on Acapulco Airport, the remaining 12 airports in OMA's network experienced a smaller decline of 5.2%.
Commercial traffic accounted for 99.4% of the total passenger volume, with general aviation making up the remaining 0.6%. During the month, OMA also launched a new route as part of its operations.
OMA operates 13 international airports across nine states in central and northern Mexico, including Monterrey, the country's third-largest metropolitan area, and popular tourist destinations like Acapulco, Mazatlán, and Zihuatanejo. The company also manages a hotel inside the Mexico City airport's Terminal 2 and another at the Monterrey airport, with a workforce of over 1,200 people.
The information in this article is based on statements from OMA's report to the Securities and Exchange Commission.
In other recent news, Grupo Aeroportuario del Centro Norte, commonly known as OMA, has been the focus of several significant developments. Morgan Stanley (NYSE:MS) upgraded OMA's stock from Equalweight to Overweight, despite lowering the price target to $77 from $82. The firm's confidence is partly due to OMA's business model, which typically maintains profit margins between 29-32% with low volatility.
OMA reported a mixed performance in its second-quarter earnings for 2024, with a 2.4% decrease in total passenger traffic, largely due to a 4.3% decline in domestic traffic. However, international traffic increased by 12%, and non-aeronautical revenues grew by 13.8%. The company also reported an adjusted EBITDA of MXN 2.2 billion and a cash position of MXN 1.6 billion.
The company also experienced a 4.2% decrease in passenger traffic across its 13 airports for July 2024 compared to the same month last year. However, OMA announced the commencement of four new routes during the month, which could potentially contribute to future traffic growth.
In addition, OMA has published its 2023 Sustainability Report and third Green Bond Report, highlighting the company's progress in various activities and initiatives, including the allocation of proceeds and the environmental impact of projects funded by the Green Bond issued in 2021.
These are among the recent developments at OMA.
InvestingPro Insights
As Grupo Aeroportuario del Centro Norte (OMA) navigates the fluctuations in passenger traffic, investors may find value in the company's financial health and market performance. With a market capitalization of $3.07 billion and a robust gross profit margin of 67.95% in the last twelve months as of Q2 2024, OMA stands out for its impressive profitability in the sector. Despite a decrease in passenger traffic, the company's revenue growth remains positive at 8.93% year-over-year, showcasing its resilience.
An InvestingPro Tip highlights OMA's attractive earnings multiple, with a P/E ratio of 12.23, suggesting that the stock may be undervalued relative to its earnings potential. Additionally, OMA pays a significant dividend to shareholders, boasting a high dividend yield of 10.96%, which could be appealing for income-focused investors. These financial metrics, along with the fact that analysts predict the company will remain profitable this year, make OMA a noteworthy player in the Transportation Infrastructure industry.
For those interested in a deeper analysis, InvestingPro offers more tips on OMA, which can be found at https://www.investing.com/pro/OMAB. These additional insights can provide investors with a more comprehensive understanding of the company's performance and potential investment opportunities.
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