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

Last update: Sep 29, 2023

Our stock screening tool has pinpointed COPA HOLDINGS SA-CLASS A (NYSE:CPA) as a growth stock that isn't overvalued. NYSE:CPA is excelling in various growth indicators while maintaining a solid financial footing. Furthermore, it remains attractively priced. Let's delve into the specifics below.

ChartMill's Evaluation of Growth

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NYSE:CPA was assigned a score of 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.
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.

Analyzing Valuation Metrics

ChartMill employs its own Valuation Rating system for all stocks. This score, ranging from 0 to 10, is determined by evaluating different valuation factors, including price to earnings and free cash flow, both in absolute terms and relative to the market and industry. NYSE:CPA has earned a 9 for valuation:

CPA is valuated cheaply with a Price/Earnings ratio of 5.78.
Based on the Price/Earnings ratio, CPA is valued cheaper than 86.96% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.79, CPA is valued rather cheaply.
With a Price/Forward Earnings ratio of 5.25, 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.
Compared to an average S&P500 Price/Forward Earnings ratio of 18.89, 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.
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.
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.

Looking at the Health

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NYSE:CPA has earned 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.
CPA has a better Debt to FCF ratio (2.13) than 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.

Profitability Insights: NYSE:CPA

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NYSE:CPA scores a 6 out of 10:

CPA's Return On Assets of 6.73% is amongst the best of the industry. CPA outperforms 91.30% of its industry peers.
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.
Looking at the Profit Margin, with a value of 10.17%, CPA belongs to the top of the industry, outperforming 95.65% of the companies in the same industry.
The Operating Margin of CPA (22.25%) is better than 100.00% of its industry peers.
Looking at the Gross Margin, with a value of 59.33%, CPA is in the better half of the industry, outperforming 73.91% of the companies in the same industry.

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

Check the latest full fundamental report of CPA for a complete fundamental analysis.

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.