Looking for growth without the hefty price tag? Consider NYSE:CPA.

Last update: Sep 25, 2023

Here's COPA HOLDINGS SA-CLASS A (NYSE:CPA) for you, a growth stock our stock screener believes is undervalued. NYSE:CPA is scoring impressively in terms of growth while demonstrating strong financials. On top of that, it remains attractively priced. Let's break it down further.

How We Gauge Growth for NYSE:CPA

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NYSE:CPA has earned a 7 for growth:

The Earnings Per Share has grown by an impressive 313.78% over the past year.
CPA shows a strong growth in Revenue. In the last year, the Revenue has grown by 47.77%.
The Earnings Per Share is expected to grow by 28.48% on average over the next years. This is a very strong growth
CPA is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.48% yearly.
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

Deciphering NYSE:CPA's Valuation Rating

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 5.77, the valuation of CPA can be described as very cheap.
Based on the Price/Earnings ratio, CPA is valued cheaper than 86.96% of the companies in the same industry.
CPA's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.89.
A Price/Forward Earnings ratio of 5.24 indicates a rather cheap valuation of CPA.
CPA's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CPA is cheaper than 78.26% of the companies in the same industry.
CPA is valuated cheaply when we compare the Price/Forward Earnings ratio to 18.97, which is the current average of the S&P500 Index.
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CPA indicates a rather cheap valuation: CPA is cheaper than 91.30% of the companies listed in the same industry.
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.

Health Assessment of NYSE:CPA

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:CPA has received a 5 out of 10:

Looking at the Altman-Z score, with a value of 1.94, CPA belongs to the top of the industry, outperforming 86.96% 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.
CPA has a better Debt to Equity ratio (0.83) than 69.57% of its industry peers.

Profitability Assessment of 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:

Looking at the Return On Assets, with a value of 6.73%, CPA belongs to the top of the industry, outperforming 91.30% of the companies in the same industry.
Looking at the Return On Equity, with a value of 22.08%, CPA is in the better half of 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.
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.
CPA has a better Gross Margin (59.33%) than 73.91% of its industry peers.

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

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

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.