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, engages in designing, promoting, building, and selling housing developments in Mexico.
Market Cap
MXN 4.6B
Pitch Price
N/A
Price Target
N/A
Dividend
4.36%
EV/EBITDA
5.17
P/E
6.09
EV/Sales
0.65
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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