Risk factor
Very poor trading liquidity
Profitability factor
Greatly undervalued vs peers
About
Grupo Mexicano de Desarrollo, S.A.B. (GMD) is a leading Mexican company that specializes in the development and management of infrastructure projects across the country. The company's diverse portfolio spans crucial sectors, including the operation of port, maritime, and inland terminal facilities; the implementation of hydraulic systems for delivering potable water and treating wastewater; the construction and management of both private toll roads and public highways; and the creation of tourism destinations, such as marinas, residential communities, and hotels. Beyond these core infrastructure activities, GMD also manufactures structural steel and offers comprehensive engineering, procurement, and construction (EPC) services to various industrial clients. Furthermore, the firm has a presence in the energy sector, participating in projects related to renewable power generation and hydrocarbon storage. Established in 1942, Grupo Mexicano de Desarrollo is headquartered in Mexico City.
Company Valuation
Based on key historical and expected multiples, the stock is greatly undervalued relative to its peers. Specifically, the stock is 'cheap' on P/E, undervalued on EV/EBITD