OMAB

We rate Central North Airport Group (OMAB) as a Buy with a composite score of 69.0/100 at a current price of $126.01. The stock scores above average across the majority of our six quantitative factors and ranks #123 out of 7,333 stocks in our universe, reflecting a favorable risk-reward profile.

The rating is primarily driven by strength in quality (83th percentile) and momentum (80th percentile), which together account for the majority of the composite score. All factors score above the 40th percentile, indicating no material weakness in the quantitative profile. We assign a Narrow Moat rating (60/100), Medium uncertainty, and Exemplary capital allocation.

Key items to watch: balance sheet deleveraging progress. Any material change in these dynamics could warrant a reassessment of our rating. The moat trend is stable, which suggests the competitive landscape is stable for now.

Central North Airport Group holds an above-average position (#25 of 50) within the Transportation, Communications, Electric, Gas, And Sanitary Services sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 69.0/100 places it at rank #123 in our full 7,333-stock universe. At $3.2B in market capitalization, Central North Airport Group is a mid-cap player in the Transportation, Communications, Electric, Gas, And Sanitary Services space, which limits certain scale advantages but may allow for more agile strategic execution.

Momentum indicators (80th percentile) are constructive regarding the near-term price trend. Revenue growth data is unavailable, limiting our ability to confirm whether momentum is fundamentally supported.

The margin cascade tells an important story: gross margins of 72% (+16.7pp vs sector) narrow to operating margins of 54% (+36.1pp vs sector) and net margins of 32.8%, yielding a gross-to-net conversion rate of 46%. This efficient conversion suggests well-controlled operating costs and limited margin leakage between the gross and net levels.

At a current price of $126.01, Central North Airport Group is trading near fair value based on current fundamentals. Our value factor score of 65/100 reflects a composite assessment across multiple valuation metrics including price-to-earnings, price-to-book, EV/EBITDA, and price-to-sales ratios relative to both sector peers and the broader market. Valuation metrics are mixed, with no strong signal of mispricing in either direction.

The stock currently trades at EV/EBITDA of 4.1x (discounted to peers), P/B of 13.0x, P/S of 2.3x. We evaluate these multiples in the context of both absolute levels and sector-relative positioning to form our valuation view.

We assign a Medium uncertainty rating to Central North Airport Group. The stock presents a balanced risk profile: significant leverage (109% debt-to-equity) and low beta of 0.52 — while defensive, this may indicate limited upside participation in bull markets. While not risk-free, the core business fundamentals are adequate to withstand moderate economic stress, and the range of potential outcomes around our fair value estimate is manageable.

Specific risk factors that inform our assessment include: significant leverage (109% debt-to-equity); low beta of 0.52 — while defensive, this may indicate limited upside participation in bull markets. Each of these factors independently widens the distribution of potential outcomes, and in combination they create a risk profile that demands careful position sizing. The stability factor at the 69th percentile and quality factor at the 83th percentile provide a quantitative summary of the overall risk landscape.

Key risk mitigants include: healthy gross margins of 72% provide a buffer against cost pressures; above-average stability (69th percentile) suggests predictable business dynamics; a 7.25% dividend yield anchors total return. These factors partially offset the identified risks and provide downside protection in adverse scenarios. On balance, the risk-reward profile is favorable for long-term investors.

We rate Central North Airport Group's capital allocation as Exemplary. Management demonstrates a strong track record of balancing reinvestment with shareholder returns, evidenced by returns on equity of 190.1%, a 7.25% dividend yield, best-in-class net margins of 32.8%. Exemplary allocators typically generate returns on equity above 20% while maintaining debt-to-equity below 50% — Central North Airport Group meets this high bar.

The balance sheet remains conservatively managed, providing financial flexibility for opportunistic investments while maintaining a margin of safety for shareholders. The company returns capital via a 7.25% dividend yield, and the combination of 72.5% return on assets and controlled leverage suggests management is deploying capital at rates well above the cost of capital — the hallmark of exemplary stewardship.

In summary, Central North Airport Group receives a Buy rating with a composite score of 69.0/100 (rank #123 of 7,333). Our quantitative framework assigns a Narrow Moat (60/100, trend: stable), Medium uncertainty, and Exemplary capital allocation. The average factor score across quality, value, momentum, stability, and investment is 68/100.

Our analysis supports a constructive view on Central North Airport Group. The combination of identifiable competitive advantages, medium uncertainty, and exemplary capital allocation creates a risk-reward profile that favors accumulation at current levels. We recommend investors consider adding this name to portfolios aligned with the stock's risk profile.