For those who appreciate growth without the sticker shock, NYSE:CPA is worth considering.

Here's COPA HOLDINGS SA-CLASS A (NYSE:CPA) for you, a growth stock our stock screener believes is undervalued. NYSE:CPA is scoring impressively in terms of growth while demonstrating strong financials. On top of that, it remains attractively priced. Let's break it down further.

Unpacking NYSE:CPA's Growth Rating

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NYSE:CPA has earned a 7 for growth:

• CPA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 313.78%, which is quite impressive.
• CPA shows a strong growth in Revenue. In the last year, the Revenue has grown by 47.77%.
• CPA is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 28.48% yearly.
• The Revenue is expected to grow by 9.48% on average over the next years. This is quite good.
• When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
• The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

Evaluating Valuation: NYSE:CPA

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. NYSE:CPA has achieved a 9 out of 10:

• Based on the Price/Earnings ratio of 5.71, the valuation of CPA can be described as very cheap.
• Based on the Price/Earnings ratio, CPA is valued cheaper than 86.96% of the companies in the same industry.
• CPA is valuated cheaply when we compare the Price/Earnings ratio to 25.92, which is the current average of the S&P500 Index.
• With a Price/Forward Earnings ratio of 5.19, the valuation of CPA can be described as very cheap.
• CPA's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CPA is cheaper than 78.26% of the companies in the same industry.
• The average S&P500 Price/Forward Earnings ratio is at 19.00. CPA is valued rather cheaply when compared to this.
• Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CPA indicates a rather cheap valuation: CPA is cheaper than 91.30% of the companies listed in the same industry.
• 91.30% of the companies in the same industry are more expensive than CPA, based on the Price/Free Cash Flow ratio.
• The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
• CPA has a very decent profitability rating, which may justify a higher PE ratio.
• A more expensive valuation may be justified as CPA's earnings are expected to grow with 28.48% in the coming years.

How We Gauge Health for NYSE:CPA

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:CPA has achieved a 5 out of 10:

• With an excellent Altman-Z score value of 1.94, CPA belongs to the best of the industry, outperforming 86.96% of the companies in the same industry.
• CPA has a debt to FCF ratio of 2.13. This is a good value and a sign of high solvency as CPA would need 2.13 years to pay back of all of its debts.
• CPA's Debt to FCF ratio of 2.13 is amongst the best of the industry. CPA outperforms 100.00% of its industry peers.
• Looking at the Debt to Equity ratio, with a value of 0.83, CPA is in the better half of the industry, outperforming 69.57% of the companies in the same industry.

How do we evaluate the Profitability for NYSE:CPA?

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NYSE:CPA, the assigned 6 is a significant indicator of profitability:

• CPA has a Return On Assets of 6.73%. This is amongst the best in the industry. CPA outperforms 91.30% of its industry peers.
• Looking at the Return On Equity, with a value of 22.08%, CPA is in the better half of the industry, outperforming 78.26% of the companies in the same industry.
• The Return On Invested Capital of CPA (20.49%) is better than 91.30% of its industry peers.
• Looking at the Profit Margin, with a value of 10.17%, CPA belongs to the top of the industry, outperforming 95.65% of the companies in the same industry.
• CPA has a better Operating Margin (22.25%) than 100.00% of its industry peers.
• With a decent Gross Margin value of 59.33%, CPA is doing good in the industry, outperforming 73.91% of the companies in the same industry.

Our Affordable Growth screener lists more Affordable Growth stocks and is updated daily.

Check the latest full fundamental report of CPA for a complete fundamental analysis.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.