NYSE:CPA stands out as a growth opportunity that won't break the bank.

Last update: Sep 22, 2023

COPA HOLDINGS SA-CLASS A (NYSE:CPA) was identified as an affordable growth stock by our stock screener. NYSE:CPA is showing great growth, but also scores well on profitability, solvency and liquidity. At the same time it seems to be priced reasonably. We'll explore this a bit deeper below.

Growth Assessment of NYSE:CPA

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NYSE:CPA scores 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.
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.
Based on estimates for the next years, CPA will show a quite strong growth in Revenue. The Revenue will grow by 9.48% on average per year.
The EPS growth rate is accelerating: in the next years the growth will be better 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.

Valuation Examination for 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:

CPA is valuated cheaply with a Price/Earnings ratio of 5.89.
Compared to the rest of the industry, the Price/Earnings ratio of CPA indicates a rather cheap valuation: CPA is cheaper than 86.96% of the companies listed in the same industry.
CPA's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.93.
A Price/Forward Earnings ratio of 5.35 indicates a rather cheap valuation of CPA.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CPA indicates a somewhat cheap valuation: CPA is cheaper than 78.26% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 19.01, CPA is valued rather cheaply.
Based on the Enterprise Value to EBITDA ratio, CPA is valued cheaper than 86.96% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CPA indicates a rather cheap valuation: CPA is cheaper than 91.30% of the companies listed in the same industry.
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.
A more expensive valuation may be justified as CPA's earnings are expected to grow with 28.48% in the coming years.

Assessing Health Metrics for NYSE:CPA

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NYSE:CPA was assigned a score of 5 for health:

Looking at the Altman-Z score, with a value of 2.12, CPA belongs to the top of the industry, outperforming 82.61% of the companies in the same industry.
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.
The Debt to Equity ratio of CPA (0.83) is better than 69.57% of its industry peers.

A Closer Look at Profitability for NYSE:CPA

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NYSE:CPA has earned a 6 out of 10:

With an excellent Return On Assets value of 6.73%, CPA belongs to the best of the industry, outperforming 91.30% of the companies in the same industry.
With a decent Return On Equity value of 22.08%, CPA is doing good in the industry, outperforming 78.26% of the companies in the same industry.
CPA has a Return On Invested Capital of 20.49%. This is amongst the best in the industry. CPA outperforms 91.30% of its industry peers.
CPA has a better Profit Margin (10.17%) than 95.65% of its industry peers.
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.

Every day, new Affordable Growth stocks can be found on ChartMill in our Affordable Growth screener.

Our latest full fundamental report of CPA contains the most current fundamental analsysis.

Disclaimer

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.