In a market where value is scarce, NYSE:CPA offers a refreshing opportunity with its solid fundamentals.

Last update: Sep 25, 2023

Our stock screener has singled out COPA HOLDINGS SA-CLASS A (NYSE:CPA) as a stellar value proposition. NYSE:CPA not only scores well in profitability, solvency, and liquidity but also maintains a very reasonable price point. We'll explore this further.

Analyzing Valuation Metrics

ChartMill assigns a Valuation Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing different valuation elements, such as price to earnings and free cash flow, both in absolute terms and relative to the market and industry. In the case of NYSE:CPA, the assigned 9 reflects its valuation:

CPA is valuated cheaply with a Price/Earnings ratio of 5.77.
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.
When comparing the Price/Earnings ratio of CPA to the average of the S&P500 Index (25.89), we can say CPA is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 5.24, the valuation of CPA can be described as very cheap.
Based on the Price/Forward Earnings ratio, CPA is valued a bit cheaper than 78.26% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 18.97. CPA is valued rather cheaply when compared to this.
Based on the Enterprise Value to EBITDA ratio, CPA is valued cheaper than 91.30% of the companies 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.
The 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.

Understanding NYSE:CPA's Profitability

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NYSE:CPA has achieved a 6:

CPA has a Return On Assets of 6.73%. This is amongst the best in the industry. CPA outperforms 91.30% of its industry peers.
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's Return On Invested Capital of 20.49% is amongst the best of 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.
The Operating Margin of CPA (22.25%) is better than 100.00% of its industry peers.
CPA's Gross Margin of 59.33% is fine compared to the rest of the industry. CPA outperforms 73.91% of its industry peers.

How do we evaluate the Health for NYSE:CPA?

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NYSE:CPA scores a 5 out of 10:

With an excellent Altman-Z score value of 1.94, CPA belongs to the best 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.
The Debt to FCF ratio of CPA (2.13) is better than 100.00% of its industry peers.
CPA has a better Debt to Equity ratio (0.83) than 69.57% of its industry peers.

A Closer Look at Growth for 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.
The Revenue has grown by 47.77% in the past year. This is a very strong growth!
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.
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.

More Decent Value stocks can be found in our Decent Value screener.

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

Disclaimer

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.