NYSE:CPA is showing good growth, while it is not too expensive.

Last update: Oct 2, 2023

Uncover the potential of COPA HOLDINGS SA-CLASS A (NYSE:CPA), a growth stock that our stock screener found to be reasonably priced. NYSE:CPA is excelling in growth aspects, maintaining a healthy financial position, and still offers an attractive valuation. We'll examine each aspect in detail.

A Closer Look at Growth for NYSE:CPA

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NYSE:CPA, the assigned 7 reflects its growth potential:

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.
CPA shows a strong growth in Revenue. In the last year, the Revenue has grown by 47.77%.
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.
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.

Understanding NYSE:CPA's Valuation

An integral part of ChartMill's stock analysis is the Valuation Rating, which spans from 0 to 10. This rating evaluates diverse valuation factors, including price to earnings and cash flows, while considering the stock's profitability and growth. NYSE:CPA has received a 9 out of 10:

CPA is valuated cheaply with a Price/Earnings ratio of 5.82.
Based on the Price/Earnings ratio, CPA is valued cheaply inside the industry as 91.30% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 25.75. CPA is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 5.29, the valuation of CPA can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CPA indicates a somewhat cheap valuation: CPA is cheaper than 78.26% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 18.85, CPA is valued rather cheaply.
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CPA indicates a somewhat cheap valuation: CPA is cheaper than 78.26% of the companies listed in the same industry.
CPA's Price/Free Cash Flow ratio is rather cheap when compared to the industry. CPA is cheaper than 86.96% 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.
A more expensive valuation may be justified as CPA's earnings are expected to grow with 28.48% in the coming years.

Health Analysis for NYSE:CPA

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:

CPA has a better Altman-Z score (2.16) 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's Debt to FCF ratio of 2.13 is amongst the best of the industry. CPA outperforms 100.00% of its industry peers.
The Debt to Equity ratio of CPA (0.83) is better than 69.57% of its industry peers.

Evaluating Profitability: NYSE:CPA

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NYSE:CPA, the assigned 6 is noteworthy for profitability:

The Return On Assets of CPA (6.73%) is better than 91.30% of its industry peers.
With a decent Return On Equity value of 22.08%, CPA is doing good in the industry, outperforming 78.26% of the companies in the same industry.
CPA has a better Return On Invested Capital (20.49%) than 91.30% of its industry peers.
CPA has a better Profit Margin (10.17%) than 95.65% of its industry peers.
CPA has a Operating Margin of 22.25%. This is amongst the best in 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.

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 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.