Investors seeking growth at a reasonable cost should explore NYSE:CPA.

Last update: Oct 3, 2023

Take a closer look at COPA HOLDINGS SA-CLASS A (NYSE:CPA), an affordable growth stock uncovered by our stock screener. NYSE:CPA boasts strong growth prospects and excels in financial health indicators, all while maintaining a reasonable valuation. Let's break it down further.

How do we evaluate the 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!
Based on estimates for the next years, CPA will show a very strong growth in Earnings Per Share. The EPS will grow by 28.48% on average per year.
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.

A Closer Look at Valuation for NYSE:CPA

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:

With a Price/Earnings ratio of 5.64, the valuation of CPA can be described as very cheap.
Based on the Price/Earnings ratio, CPA is valued cheaply inside the industry as 91.30% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 25.50, CPA is valued rather cheaply.
CPA is valuated cheaply with a Price/Forward Earnings ratio of 5.13.
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's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 18.66.
Based on the Enterprise Value to EBITDA ratio, CPA is valued cheaper than 82.61% of the companies in the same industry.
86.96% of the companies in the same industry are more expensive than CPA, based on the Price/Free Cash Flow ratio.
CPA's 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.

ChartMill's Evaluation of Health

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:

CPA has a better Altman-Z score (2.14) than 86.96% of its industry peers.
The Debt to FCF ratio of CPA is 2.13, which is a good value as it means it would take CPA, 2.13 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of CPA (2.13) is better than 100.00% of its industry peers.
CPA's Debt to Equity ratio of 0.83 is fine compared to the rest of the industry. CPA outperforms 69.57% of its industry peers.

How do we evaluate the Profitability for 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:

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.
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 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.
The Operating Margin of CPA (22.25%) is better than 100.00% of its industry peers.
CPA has a Gross Margin of 59.33%. This is in the better half of the industry: CPA outperforms 73.91% of its industry peers.

Every day, new Affordable Growth stocks can be found on ChartMill 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.