Don't overlook NYSE:CPA—it's a hidden gem with strong fundamentals and an attractive price tag.

COPA HOLDINGS SA-CLASS A (NYSE:CPA) is a hidden gem identified by our stock screening tool, featuring undervaluation and robust fundamentals. NYSE:CPA showcases decent financial health and profitability, coupled with an attractive price. Let's dig deeper into the analysis.

Understanding NYSE:CPA's Valuation

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 5.89, 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 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.
• With a Price/Forward Earnings ratio of 5.35, the valuation of CPA can be described as very cheap.
• 78.26% of the companies in the same industry are more expensive than CPA, based on the Price/Forward Earnings ratio.
• 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.
• CPA's Price/Free Cash Flow ratio is rather cheap when compared to the industry. CPA is cheaper than 91.30% of the companies 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.
• CPA's earnings are expected to grow with 28.48% in the coming years. This may justify a more expensive valuation.

A Closer Look at Profitability for NYSE:CPA

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NYSE:CPA was assigned a score of 6 for profitability:

• 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.
• CPA's Return On Equity of 22.08% is fine compared to the rest of the industry. CPA outperforms 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.
• With an excellent Operating Margin value of 22.25%, CPA belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
• 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.

ChartMill's Evaluation of Health

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NYSE:CPA, the assigned 5 for health provides valuable insights:

• 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.
• 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 has a Debt to FCF ratio of 2.13. This is amongst the best in the industry. CPA outperforms 100.00% of its industry peers.
• With a decent Debt to Equity ratio value of 0.83, CPA is doing good in the industry, outperforming 69.57% of the companies in the same industry.

Understanding NYSE:CPA's Growth

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NYSE:CPA boasts a 7 out of 10:

• The Earnings Per Share has grown by an impressive 313.78% over the past year.
• 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.
• 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.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

For an up to date full fundamental analysis you can check the fundamental report of CPA

Keep in mind

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.