COPA HOLDINGS SA-CLASS A (CPA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CPA - PAP310761054 - Common Stock
136.62 USD
+2.61 (+1.95%)
136.62 USD
0 (0%)
Taking everything into account, CPA scores 7 out of 10 in our fundamental rating. CPA was compared to 22 industry peers in the Passenger Airlines industry. While CPA has a great profitability rating, there are some minor concerns on its financial health. CPA is valued quite cheap, while showing a decent growth score. This is a good combination! These ratings could make CPA a good candidate 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.
- Of the past 5 years CPA 4 years were profitable.
- Each year in the past 5 years CPA had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 10.59%, CPA belongs to the top of the industry, outperforming 95.45% of the companies in the same industry.
- CPA's Return On Equity of 24.91% is amongst the best of the industry. CPA outperforms 90.91% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 14.07%, CPA belongs to the top of the industry, outperforming 86.36% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for CPA is significantly below the industry average of 20.53%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.59% | ||
| ROE | 24.91% | ||
| ROIC | 14.07% |
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 (18.81%) 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 (22.82%) is better than 100.00% of its industry peers.
- CPA's Operating Margin has improved in the last couple of years.
- CPA's Gross Margin of 63.15% 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 | 22.82% | ||
| PM (TTM) | 18.81% | ||
| GM | 63.15% |
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.
- Compared to 1 year ago, CPA has less shares outstanding
- Compared to 5 years ago, CPA has less shares outstanding
- CPA has a worse debt/assets ratio than last year.
2.2 Solvency
- CPA has an Altman-Z score of 2.55. This is not the best score and indicates that CPA is in the grey zone with still only limited risk for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 2.55, CPA belongs to the top of the industry, outperforming 90.91% of the companies in the same industry.
- The Debt to FCF ratio of CPA is 4.89, which is a neutral value as it means it would take CPA, 4.89 years of fcf income to pay off all of its debts.
- CPA has a better Debt to FCF ratio (4.89) than 86.36% of its industry peers.
- CPA has a Debt/Equity ratio of 0.71. This is a neutral value indicating CPA is somewhat dependend on debt financing.
- The Debt to Equity ratio of CPA (0.71) is better than 77.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 4.89 | ||
| Altman-Z | 2.55 |
ROIC/WACC1.53
WACC9.18%
2.3 Liquidity
- CPA has a Current Ratio of 1.06. This is a normal value and indicates that CPA is financially healthy and should not expect problems in meeting its short term obligations.
- With an excellent Current ratio value of 1.06, CPA belongs to the best of the industry, outperforming 95.45% of the companies in the same industry.
- A Quick Ratio of 0.95 indicates that CPA may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.95, CPA belongs to the top of the industry, outperforming 95.45% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.06 | ||
| Quick Ratio | 0.95 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 6.91% over the past year.
- The Earnings Per Share has been growing by 12.92% on average over the past years. This is quite good.
- Looking at the last year, CPA shows a small growth in Revenue. The Revenue has grown by 1.53% in the last year.
- CPA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.94% yearly.
EPS 1Y (TTM)6.91%
EPS 3Y492.5%
EPS 5Y12.92%
EPS Q2Q%20%
Revenue 1Y (TTM)1.53%
Revenue growth 3Y31.66%
Revenue growth 5Y4.94%
Sales Q2Q%6.84%
3.2 Future
- The Earnings Per Share is expected to grow by 11.52% on average over the next years. This is quite good.
- Based on estimates for the next years, CPA will show a small growth in Revenue. The Revenue will grow by 7.65% on average per year.
EPS Next Y14.41%
EPS Next 2Y11.88%
EPS Next 3Y11.47%
EPS Next 5Y11.52%
Revenue Next Year5.2%
Revenue Next 2Y8.04%
Revenue Next 3Y7.89%
Revenue Next 5Y7.65%
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.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- CPA is valuated reasonably with a Price/Earnings ratio of 8.50.
- Based on the Price/Earnings ratio, CPA is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
- When comparing the Price/Earnings ratio of CPA to the average of the S&P500 Index (27.25), we can say CPA is valued rather cheaply.
- A Price/Forward Earnings ratio of 7.50 indicates a rather cheap valuation of CPA.
- Based on the Price/Forward Earnings ratio, CPA is valued cheaply inside the industry as 95.45% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, CPA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.5 | ||
| Fwd PE | 7.5 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, CPA is valued a bit cheaper than 77.27% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, CPA is valued cheaper than 81.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.64 | ||
| EV/EBITDA | 5.33 |
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.
- CPA has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)0.59
PEG (5Y)0.66
EPS Next 2Y11.88%
EPS Next 3Y11.47%
5. Dividend
5.1 Amount
- CPA has a Yearly Dividend Yield of 4.82%, which is a nice return.
- Compared to an average industry Dividend Yield of 0.83, CPA pays a better dividend. On top of this CPA pays more dividend than 100.00% of the companies listed in the same industry.
- CPA's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.82% |
5.2 History
- On average, the dividend of CPA grows each year by 17.30%, which is quite nice.
- CPA has paid a dividend for at least 10 years, which is a reliable track record.
- The dividend of CPA decreased recently.
Dividend Growth(5Y)17.3%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
- The dividend of CPA is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DPN/A
EPS Next 2Y11.88%
EPS Next 3Y11.47%
COPA HOLDINGS SA-CLASS A / CPA FAQ
What is the fundamental rating for CPA stock?
ChartMill assigns a fundamental rating of 7 / 10 to CPA.
What is the valuation status for CPA stock?
ChartMill assigns a valuation rating of 9 / 10 to COPA HOLDINGS SA-CLASS A (CPA). This can be considered as Undervalued.
How profitable is COPA HOLDINGS SA-CLASS A (CPA) stock?
COPA HOLDINGS SA-CLASS A (CPA) has a profitability rating of 8 / 10.
What is the valuation of COPA HOLDINGS SA-CLASS A based on its PE and PB ratios?
The Price/Earnings (PE) ratio for COPA HOLDINGS SA-CLASS A (CPA) is 8.5 and the Price/Book (PB) ratio is 2.11.