Stephen Simpson, CFA
Long only, growth at reasonable price, value, research analyst

OMA Looking To Traffic And Non-Aeronautical To Drive Growth

Like Grupo Aeroportuario del Pacifico (NYSE:PAC), Grupo Aeroportuario del Centro Norte (NASDAQ:OMAB), also known as "OMA", operates airports in Mexico under long-term concessions from the government. While OMA should benefit from the same surge in low-cost airlines as PAC and Grupo Aeroportuario del Sureste (NYSE:ASR), OMA is looking to non-aerospace opportunities like real estate development to help drive growth.

OMA may not look so interesting from the perspective of backwards-looking valuation metrics, but the potential cash flow growth here makes this an interesting name. OMA is more focused on domestic traffic than PAC, but if the company's attempts to develop properties like hotels and cargo facilities pan out, double-digit free cash flow growth and...

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