NYSE:CPA, a growth stock which is not overvalued.

Consider COPA HOLDINGS SA-CLASS A (NYSE:CPA) as an affordable growth stock, identified by our stock screening tool. NYSE:CPA is showcasing impressive growth figures and is well-positioned in terms of profitability, solvency, and liquidity. Moreover, it seems to be priced reasonably. Let's dive deeper into the analysis.

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

Assessing Valuation Metrics for NYSE:CPA

ChartMill assigns a Valuation Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing different valuation elements, such as price to earnings and free cash flow, both in absolute terms and relative to the market and industry. In the case of NYSE:CPA, the assigned 9 reflects its valuation:

• The Price/Earnings ratio is 5.51, which indicates a rather cheap valuation of CPA.
• 86.96% of the companies in the same industry are more expensive than CPA, based on the Price/Earnings ratio.
• When comparing the Price/Earnings ratio of CPA to the average of the S&P500 Index (25.88), we can say CPA is valued rather cheaply.
• With a Price/Forward Earnings ratio of 5.01, the valuation of CPA can be described as very cheap.
• 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 18.97.
• 82.61% of the companies in the same industry are more expensive than CPA, based on the Enterprise Value to EBITDA ratio.
• Based on the Price/Free Cash Flow ratio, CPA is valued cheaply inside the industry as 86.96% 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.
• CPA's earnings are expected to grow with 28.48% in the coming years. This may justify a more expensive valuation.

Deciphering NYSE:CPA's Health Rating

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:

• Looking at the Altman-Z score, with a value of 2.13, CPA belongs to the top 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.
• The Debt to FCF ratio of CPA (2.13) is better than 100.00% of its industry peers.
• CPA has a better Debt to Equity ratio (0.83) than 69.57% of its industry peers.

Looking at the Profitability

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:

• The Return On Assets of CPA (6.73%) is better than 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.
• Looking at the Return On Invested Capital, with a value of 20.49%, CPA belongs to the top 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.
• Looking at the Operating Margin, with a value of 22.25%, CPA belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
• CPA has a better Gross Margin (59.33%) than 73.91% of its industry peers.

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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.