NYSE:CPA is a prime example of a stock that offers more than what meets the eye in terms of fundamentals.

Last update: Sep 28, 2023

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

Understanding NYSE:CPA's Valuation

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NYSE:CPA scores a 9 out of 10:

CPA is valuated cheaply with a Price/Earnings ratio of 5.76.
91.30% of the companies in the same industry are more expensive than CPA, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 25.59. CPA is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 5.24, which 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.
Compared to an average S&P500 Price/Forward Earnings ratio of 18.75, CPA is valued rather cheaply.
Based on the Enterprise Value to EBITDA ratio, CPA is valued cheaper than 91.30% of the companies in the same industry.
91.30% of the companies in the same industry are more expensive than CPA, based on the Price/Free Cash Flow ratio.
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
CPA has a very decent profitability rating, which 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.

Profitability Assessment of NYSE:CPA

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NYSE:CPA, the assigned 6 is a significant indicator of 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.
With an excellent Return On Invested Capital value of 20.49%, CPA belongs to the best of the industry, outperforming 91.30% of the companies in the same industry.
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.
The Gross Margin of CPA (59.33%) is better than 73.91% of its industry peers.

Health Analysis for NYSE:CPA

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:CPA has achieved a 5 out of 10:

CPA has a better Altman-Z score (1.94) than 86.96% of its industry peers.
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 Debt to Equity ratio of 0.83. This is in the better half of the industry: CPA outperforms 69.57% of its industry peers.

Assessing Growth for NYSE:CPA

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NYSE:CPA has achieved 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!
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.

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

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.