NYSE:CPA, a growth stock which is not overvalued.

Our stock screener has singled out COPA HOLDINGS SA-CLASS A (NYSE:CPA) as an attractive growth opportunity. NYSE:CPA is demonstrating remarkable growth potential while maintaining strong financial indicators, making it a reasonably priced option. We'll explore this further.

What does the Growth looks like for NYSE:CPA

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NYSE:CPA has achieved a 7 out of 10:

• 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.
• The Revenue has grown by 47.77% in the past year. This is a very strong growth!
• Based on estimates for the next years, CPA will show a very strong growth in Earnings Per Share. The EPS will grow by 28.48% on average per year.
• The Revenue is expected to grow by 9.48% on average over the next years. This is quite good.
• The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
• The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

How do we evaluate the Valuation for NYSE:CPA?

ChartMill employs its own Valuation Rating system for all stocks. This score, ranging from 0 to 10, is determined by evaluating different valuation factors, including price to earnings and free cash flow, both in absolute terms and relative to the market and industry. NYSE:CPA has earned a 9 for valuation:

• Based on the Price/Earnings ratio of 5.76, the valuation of CPA can be described as very cheap.
• Compared to the rest of the industry, the Price/Earnings ratio of CPA indicates a rather cheap valuation: CPA is cheaper than 91.30% of the companies listed in the same industry.
• Compared to an average S&P500 Price/Earnings ratio of 25.59, CPA is valued rather cheaply.
• CPA is valuated cheaply with a Price/Forward Earnings ratio of 5.24.
• Based on the Price/Forward Earnings ratio, CPA is valued a bit cheaper than 78.26% of the companies in the same industry.
• When comparing the Price/Forward Earnings ratio of CPA to the average of the S&P500 Index (18.75), we can say CPA is valued rather cheaply.
• Based on the Enterprise Value to EBITDA ratio, CPA is valued cheaply inside the industry as 91.30% of the companies are valued more expensively.
• Based on the Price/Free Cash Flow ratio, CPA is valued cheaply inside the industry as 91.30% of the companies are valued more expensively.
• CPA's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
• The decent profitability rating of CPA may justify a higher PE ratio.
• CPA's earnings are expected to grow with 28.48% in the coming years. This may justify a more expensive valuation.

ChartMill's Evaluation of Health

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:

• The Altman-Z score of CPA (1.94) is better than 86.96% of its industry peers.
• The Debt to FCF ratio of CPA is 2.13, which is a good value as it means it would take CPA, 2.13 years of fcf income to pay off all of its debts.
• With an excellent Debt to FCF ratio value of 2.13, CPA belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
• 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.

Profitability Insights: NYSE:CPA

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NYSE:CPA has achieved a 6:

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

More Affordable Growth stocks can be found in our Affordable Growth screener.

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

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.