Added to YB: 2024-07-31
Pitch date: 2024-07-29
ARA.MX [neutral]
Consorcio ARA, S. A. B. de C. V.
Author Info
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Company Info
Consorcio ARA, S. A. B. de C. V., together with its subsidiaries, designs, constructs, markets, and promotes low-income and middle-income residential housing developments in Mexico.
Market Cap
MXN 4.2B
Pitch Price
N/A
Price Target
N/A
Dividend
4.76%
EV/EBITDA
4.89
P/E
6.05
EV/Sales
0.64
Sector
Household Durables
Category
value
Consorcio Ara – Analysis and Valuation 2.0
ARA.MX: Undervalued Mexican homebuilder. NAV est. MXN4,076M vs MXN3,700M mkt cap. Housing biz generates poor 3% ROIC, but commercial properties 15.2% ROIC. Stable margins, no cash burn. Risks: gov't financing dependence, Hurricane Otis impact. 9.2% margin of safety insufficient. Fair value despite cheap appearance due to poor ROIC.
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