Here's COPA HOLDINGS SA-CLASS A (NYSE:CPA) for you, a growth stock our stock screener believes is undervalued. NYSE:CPA is scoring impressively in terms of growth while demonstrating strong financials. On top of that, it remains attractively priced. Let's break it down further.
Understanding NYSE:CPA's Growth
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:
- The Earnings Per Share has grown by an impressive 313.78% over the past year.
- Looking at the last year, CPA shows a very strong growth in Revenue. 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.
- 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.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
How do we evaluate the 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:
- The Price/Earnings ratio is 5.45, which indicates a rather cheap valuation of CPA.
- Based on the Price/Earnings ratio, CPA is valued cheaper than 91.30% of the companies in the same industry.
- CPA's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.11.
- CPA is valuated cheaply with a Price/Forward Earnings ratio of 4.95.
- 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 18.41.
- 82.61% of the companies in the same industry are more expensive than CPA, based on the Enterprise Value to EBITDA ratio.
- 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.
- CPA has a very decent profitability rating, which 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.
Exploring NYSE:CPA's Health
A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:CPA has received a 5 out of 10:
- With an excellent Altman-Z score value of 2.12, CPA belongs to the best of the industry, outperforming 86.96% of the companies in the same industry.
- 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.
- CPA has a better Debt to FCF ratio (2.13) than 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 utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NYSE:CPA has earned 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'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 Profit Margin of 10.17%. This is amongst the best in the industry. CPA outperforms 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.
- 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
Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.