Grupo Aeroportuario del Centro Norte, S.A.B. de C.V. (BMV:OMAB) Delivered A Better ROE Than Its Industry

Many investors are still learning about the various metrics that can be useful when analysing a stock. This article is for those who would like to learn about Return On Equity (ROE). We'll use ROE to examine Grupo Aeroportuario del Centro Norte, S.A.B. de C.V. (BMV:OMAB), by way of a worked example. Return on equity or ROE is an important factor to be considered by a shareholder because it tells them how effectively their capital is being reinvested. In short, ROE shows the profit each dollar generates with respect to its shareholder investments. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. How Is ROE Calculated? Return on equity can be calculated by using the formula: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Grupo Aeroportuario del Centro Norte. de is:60% = Mex$5.2b ÷ Mex$8.7b (Based on the trailing twelve months to June 2025). The 'return' is the profit over the last twelve months. One way to conceptualize this is that for each MX$1 of shareholders' capital it has, the company made MX$0.60 in profit. See our latest analysis for Grupo Aeroportuario del Centro Norte. de Does Grupo Aeroportuario del Centro Norte. de Have A Good Return On Equity? By comparing a company's ROE with its industry average, we can get a quick measure of how good it is. However, this method is only useful as a rough check, because companies do differ quite a bit within the same industry classification. As is clear from the image below, Grupo Aeroportuario del Centro Norte. de has a better ROE than the average (15%) in the Infrastructure industry. BMV:OMA B Return on Equity September 22nd 2025 That's clearly a positive. Bear in mind, a high ROE doesn't always mean superior financial performance. Especially when a firm uses high levels of debt to finance its debt which may boost its ROE but the high leverage puts the company at risk. Our risks dashboardshould have the 2 risks we have identified for Grupo Aeroportuario del Centro Norte. de. How Does Debt Impact Return On Equity? Most companies need money -- from somewhere -- to grow their profits. That cash can come from retained earnings, issuing new shares (equity), or debt. In the first two cases, the ROE will capture this use of capital to grow. In the latter case, the use of debt will improve the returns, but will not change the equity. In this manner the use of debt will boost ROE, even though the core economics of the business stay the same. Combining Grupo Aeroportuario del Centro Norte. de's Debt And Its 60% Return On Equity Grupo Aeroportuario del Centro Norte. de does use a high amount of debt to increase returns. It has a debt to equity ratio of 1.54. While no doubt that its ROE is impressive, we would have been even more impressed had the company achieved this with lower debt. Investors should think carefully about how a company might perform if it was unable to borrow so easily, because credit markets do change over time. Summary Return on equity is useful for comparing the quality of different businesses. A company that can achieve a high return on equity without debt could be considered a high quality business. If two companies have the same ROE, then I would generally prefer the one with less debt. But ROE is just one piece of a bigger puzzle, since high quality businesses often trade on high multiples of earnings. It is important to consider other factors, such as future profit growth -- and how much investment is required going forward. So you might want to take a peek at this data-rich interactive graph of forecasts for the company. Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.