COPA HOLDINGS SA-CLASS A (CPA) Stock Fundamental Analysis
NYSE:CPA - New York Stock Exchange, Inc. - PAP310761054 - Common Stock - Currency: USD
CPA gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 22 industry peers in the Passenger Airlines industry. CPA scores excellent points on both the profitability and health parts. This is a solid base for a good stock. CPA is valued quite cheap, while showing a decent growth score. This is a good combination! These ratings would make CPA suitable for value investing!
1. Profitability
1.1 Basic Checks
In the past year CPA was profitable.
CPA had a positive operating cash flow in the past year.
CPA had positive earnings in 4 of the past 5 years.
In the past 5 years CPA always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of CPA (10.59%) is better than 100.00% of its industry peers.
CPA has a Return On Equity of 24.54%. This is amongst the best in the industry. CPA outperforms 90.91% of its industry peers.
With an excellent Return On Invested Capital value of 14.51%, CPA belongs to the best of the industry, outperforming 86.36% of the companies in the same industry.
CPA had an Average Return On Invested Capital over the past 3 years of 14.48%. This is significantly above the industry average of 8.55%.
The 3 year average ROIC (14.48%) for CPA is below the current ROIC(14.51%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.59% | ||
| ROE | 24.54% | ||
| ROIC | 14.51% |
ROA(3y)9.3%
ROA(5y)2.64%
ROE(3y)24.4%
ROE(5y)5.85%
ROIC(3y)14.48%
ROIC(5y)N/A
1.3 Margins
The Profit Margin of CPA (17.64%) is better than 100.00% of its industry peers.
CPA's Profit Margin has improved in the last couple of years.
The Operating Margin of CPA (21.75%) is better than 100.00% of its industry peers.
In the last couple of years the Operating Margin of CPA has grown nicely.
CPA's Gross Margin of 61.94% is fine compared to the rest of the industry. CPA outperforms 68.18% of its industry peers.
In the last couple of years the Gross Margin of CPA has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.75% | ||
| PM (TTM) | 17.64% | ||
| GM | 61.94% |
OM growth 3Y31.04%
OM growth 5Y6.32%
PM growth 3Y82.55%
PM growth 5Y14.1%
GM growth 3Y-0.59%
GM growth 5Y-0.26%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so CPA is still creating some value.
The number of shares outstanding for CPA has been reduced compared to 1 year ago.
The number of shares outstanding for CPA has been reduced compared to 5 years ago.
Compared to 1 year ago, CPA has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.45 indicates that CPA is not a great score, but indicates only limited risk for bankruptcy at the moment.
CPA has a Altman-Z score of 2.45. This is amongst the best in the industry. CPA outperforms 86.36% of its industry peers.
CPA has a debt to FCF ratio of 1.94. This is a very positive value and a sign of high solvency as it would only need 1.94 years to pay back of all of its debts.
CPA has a better Debt to FCF ratio (1.94) than 95.45% of its industry peers.
CPA has a Debt/Equity ratio of 0.66. This is a neutral value indicating CPA is somewhat dependend on debt financing.
The Debt to Equity ratio of CPA (0.66) is better than 77.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 1.94 | ||
| Altman-Z | 2.45 |
ROIC/WACC1.66
WACC8.74%
2.3 Liquidity
CPA has a Current Ratio of 0.99. This is a bad value and indicates that CPA is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of CPA (0.99) is better than 86.36% of its industry peers.
CPA has a Quick Ratio of 0.99. This is a bad value and indicates that CPA is not financially healthy enough and could expect problems in meeting its short term obligations.
With an excellent Quick ratio value of 0.88, CPA belongs to the best of the industry, outperforming 86.36% of the companies in the same industry.
The current and quick ratio evaluation for CPA is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.88 |
3. Growth
3.1 Past
The earnings per share for CPA have decreased strongly by -13.67% in the last year.
CPA shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.92% yearly.
CPA shows a decrease in Revenue. In the last year, the revenue decreased by -0.90%.
Measured over the past years, CPA shows a small growth in Revenue. The Revenue has been growing by 4.94% on average per year.
EPS 1Y (TTM)-13.67%
EPS 3Y492.5%
EPS 5Y12.92%
EPS Q2Q%2.15%
Revenue 1Y (TTM)-0.9%
Revenue growth 3Y31.66%
Revenue growth 5Y4.94%
Sales Q2Q%0.64%
3.2 Future
Based on estimates for the next years, CPA will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.23% on average per year.
Based on estimates for the next years, CPA will show a small growth in Revenue. The Revenue will grow by 7.63% on average per year.
EPS Next Y13%
EPS Next 2Y11.25%
EPS Next 3Y11.23%
EPS Next 5YN/A
Revenue Next Year4.63%
Revenue Next 2Y6.97%
Revenue Next 3Y7.63%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 7.22 indicates a rather cheap valuation of CPA.
Based on the Price/Earnings ratio, CPA is valued cheaper than 90.91% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.57, CPA is valued rather cheaply.
With a Price/Forward Earnings ratio of 5.87, the valuation of CPA can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CPA indicates a rather cheap valuation: CPA is cheaper than 81.82% of the companies listed in the same industry.
CPA's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.22 | ||
| Fwd PE | 5.87 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CPA indicates a somewhat cheap valuation: CPA is cheaper than 77.27% of the companies listed in the same industry.
95.45% of the companies in the same industry are more expensive than CPA, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.35 | ||
| EV/EBITDA | 4.28 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of CPA may justify a higher PE ratio.
PEG (NY)0.56
PEG (5Y)0.56
EPS Next 2Y11.25%
EPS Next 3Y11.23%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.02%, CPA is a good candidate for dividend investing.
CPA's Dividend Yield is rather good when compared to the industry average which is at 2.75. CPA pays more dividend than 100.00% of the companies in the same industry.
CPA's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.02% |
5.2 History
On average, the dividend of CPA grows each year by 17.30%, which is quite nice.
CPA has been paying a dividend for at least 10 years, so it has a reliable track record.
CPA has decreased its dividend recently.
Dividend Growth(5Y)17.3%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
CPA's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DPN/A
EPS Next 2Y11.25%
EPS Next 3Y11.23%
105.73
+1.96 (+1.89%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryPassenger Airlines
Earnings (Last)
Earnings (Next)
Inst Owners100.65%
Inst Owner Change-1%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap4.35B
Analysts83.33
Price Target157.39 (48.86%)
Short Float %5.22%
Short Ratio4.71
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.02% |
Yearly Dividend6.47
Dividend Growth(5Y)17.3%
DPN/A
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.67%
Min EPS beat(2)4.6%
Max EPS beat(2)6.74%
EPS beat(4)3
Avg EPS beat(4)2.73%
Min EPS beat(4)-1.23%
Max EPS beat(4)6.74%
EPS beat(8)7
Avg EPS beat(8)9.47%
EPS beat(12)11
Avg EPS beat(12)9.32%
EPS beat(16)15
Avg EPS beat(16)44.21%
Revenue beat(2)1
Avg Revenue beat(2)-0.41%
Min Revenue beat(2)-1.04%
Max Revenue beat(2)0.22%
Revenue beat(4)1
Avg Revenue beat(4)-1.42%
Min Revenue beat(4)-3.05%
Max Revenue beat(4)0.22%
Revenue beat(8)4
Avg Revenue beat(8)-0.33%
Revenue beat(12)6
Avg Revenue beat(12)-0.18%
Revenue beat(16)10
Avg Revenue beat(16)1.41%
PT rev (1m)1.81%
PT rev (3m)1.61%
EPS NQ rev (1m)3.7%
EPS NQ rev (3m)-1.5%
EPS NY rev (1m)0%
EPS NY rev (3m)1.95%
Revenue NQ rev (1m)0.78%
Revenue NQ rev (3m)-2.59%
Revenue NY rev (1m)0.14%
Revenue NY rev (3m)-1.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.22 | ||
| Fwd PE | 5.87 | ||
| P/S | 1.26 | ||
| P/FCF | 4.35 | ||
| P/OCF | 4.35 | ||
| P/B | 1.75 | ||
| P/tB | 1.83 | ||
| EV/EBITDA | 4.28 |
EPS(TTM)14.65
EY13.86%
EPS(NY)18.02
Fwd EY17.04%
FCF(TTM)24.32
FCFY23%
OCF(TTM)24.32
OCFY23%
SpS83.85
BVpS60.27
TBVpS57.9
PEG (NY)0.56
PEG (5Y)0.56
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.59% | ||
| ROE | 24.54% | ||
| ROCE | 17.04% | ||
| ROIC | 14.51% | ||
| ROICexc | 18.31% | ||
| ROICexgc | 18.84% | ||
| OM | 21.75% | ||
| PM (TTM) | 17.64% | ||
| GM | 61.94% | ||
| FCFM | 29.01% |
ROA(3y)9.3%
ROA(5y)2.64%
ROE(3y)24.4%
ROE(5y)5.85%
ROIC(3y)14.48%
ROIC(5y)N/A
ROICexc(3y)19.38%
ROICexc(5y)N/A
ROICexgc(3y)20.04%
ROICexgc(5y)N/A
ROCE(3y)17.01%
ROCE(5y)N/A
ROICexcg growth 3Y42.26%
ROICexcg growth 5Y4.3%
ROICexc growth 3Y42.93%
ROICexc growth 5Y4.63%
OM growth 3Y31.04%
OM growth 5Y6.32%
PM growth 3Y82.55%
PM growth 5Y14.1%
GM growth 3Y-0.59%
GM growth 5Y-0.26%
F-Score4
Asset Turnover0.6
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 1.94 | ||
| Debt/EBITDA | 1.52 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 92.59% | ||
| Profit Quality | 164.47% | ||
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.88 | ||
| Altman-Z | 2.45 |
F-Score4
WACC8.74%
ROIC/WACC1.66
Cap/Depr(3y)168.74%
Cap/Depr(5y)124.12%
Cap/Sales(3y)15.49%
Cap/Sales(5y)13.7%
Profit Quality(3y)92.06%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-13.67%
EPS 3Y492.5%
EPS 5Y12.92%
EPS Q2Q%2.15%
EPS Next Y13%
EPS Next 2Y11.25%
EPS Next 3Y11.23%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.9%
Revenue growth 3Y31.66%
Revenue growth 5Y4.94%
Sales Q2Q%0.64%
Revenue Next Year4.63%
Revenue Next 2Y6.97%
Revenue Next 3Y7.63%
Revenue Next 5YN/A
EBIT growth 1Y-9.55%
EBIT growth 3Y72.54%
EBIT growth 5Y11.57%
EBIT Next Year58.69%
EBIT Next 3Y18.45%
EBIT Next 5YN/A
FCF growth 1Y26.33%
FCF growth 3Y5.63%
FCF growth 5Y-13.35%
OCF growth 1Y26.33%
OCF growth 3Y25.25%
OCF growth 5Y4.9%