COPA HOLDINGS SA-CLASS A (CPA) Stock Fundamental Analysis
NYSE:CPA - New York Stock Exchange, Inc. - PAP310761054 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to CPA. CPA was compared to 23 industry peers in the Passenger Airlines industry. While CPA belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. CPA has a correct valuation and a medium growth rate. Finally CPA also has an excellent dividend rating. These ratings would make CPA suitable for dividend investing!
1. Profitability
1.1 Basic Checks
In the past year CPA was profitable.
Of the past 5 years CPA 4 years were profitable.
CPA had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
CPA's Return On Assets of 10.60% is amongst the best of the industry. CPA outperforms 100.00% of its industry peers.
The Return On Equity of CPA (25.64%) is better than 91.30% of its industry peers.
CPA has a Return On Invested Capital of 14.87%. This is amongst the best in the industry. CPA outperforms 95.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.6% | ||
| ROE | 25.64% | ||
| ROIC | 14.87% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With an excellent Profit Margin value of 17.67%, CPA belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
CPA's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 21.87%, CPA belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Operating Margin of CPA has grown nicely.
The Gross Margin of CPA (62.03%) is better than 65.22% of its industry peers.
In the last couple of years the Gross Margin of CPA has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.87% | ||
| PM (TTM) | 17.67% | ||
| GM | 62.03% |
OM growth 3Y31.09%
OM growth 5Y6.34%
PM growth 3Y82.62%
PM growth 5Y14.13%
GM growth 3Y-0.6%
GM growth 5Y-0.26%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so CPA is still creating some value.
CPA has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
CPA has an Altman-Z score of 2.38. This is not the best score and indicates that CPA is in the grey zone with still only limited risk for bankruptcy at the moment.
With an excellent Altman-Z score value of 2.38, CPA belongs to the best of the industry, outperforming 86.96% of the companies in the same industry.
A Debt/Equity ratio of 0.71 indicates that CPA is somewhat dependend on debt financing.
CPA's Debt to Equity ratio of 0.71 is fine compared to the rest of the industry. CPA outperforms 78.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.38 |
ROIC/WACC1.66
WACC8.94%
2.3 Liquidity
CPA has a Current Ratio of 1.10. This is a normal value and indicates that CPA is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.10, CPA belongs to the top of the industry, outperforming 86.96% of the companies in the same industry.
CPA has a Quick Ratio of 1.01. This is a normal value and indicates that CPA is financially healthy and should not expect problems in meeting its short term obligations.
With an excellent Quick ratio value of 1.01, CPA belongs to the best of the industry, outperforming 86.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.1 | ||
| Quick Ratio | 1.01 |
3. Growth
3.1 Past
The earnings per share for CPA have decreased strongly by -13.18% in the last year.
Measured over the past years, CPA shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.92% on average per year.
The Revenue has decreased by -0.36% in the past year.
The Revenue has been growing slightly by 4.93% on average over the past years.
EPS 1Y (TTM)-13.18%
EPS 3Y492.5%
EPS 5Y12.92%
EPS Q2Q%-10.74%
Revenue 1Y (TTM)-0.36%
Revenue growth 3Y31.64%
Revenue growth 5Y4.93%
Sales Q2Q%-3.92%
3.2 Future
Based on estimates for the next years, CPA will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.97% on average per year.
CPA is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.24% yearly.
EPS Next Y10.83%
EPS Next 2Y10.55%
EPS Next 3Y10.97%
EPS Next 5YN/A
Revenue Next Year6.79%
Revenue Next 2Y7.9%
Revenue Next 3Y8.24%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 6.73, which indicates a rather cheap valuation of CPA.
Based on the Price/Earnings ratio, CPA is valued cheaply inside the industry as 95.65% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of CPA to the average of the S&P500 Index (30.30), we can say CPA is valued rather cheaply.
A Price/Forward Earnings ratio of 6.08 indicates a rather cheap valuation of CPA.
CPA's Price/Forward Earnings ratio is rather cheap when compared to the industry. CPA is cheaper than 95.65% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.06. CPA is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.73 | ||
| Fwd PE | 6.08 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The 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.
PEG (NY)0.62
PEG (5Y)0.52
EPS Next 2Y10.55%
EPS Next 3Y10.97%
5. Dividend
5.1 Amount
CPA has a Yearly Dividend Yield of 6.58%, which is a nice return.
CPA's Dividend Yield is rather good when compared to the industry average which is at 2.75. CPA pays more dividend than 100.00% of the companies in the same industry.
CPA's Dividend Yield is rather good when compared to the S&P500 average which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.58% |
5.2 History
On average, the dividend of CPA grows each year by 9.98%, which is quite nice.
CPA has been paying a dividend for at least 10 years, so it has a reliable track record.
CPA has decreased its dividend recently.
Dividend Growth(5Y)9.98%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
The dividend of CPA is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DPN/A
EPS Next 2Y10.55%
EPS Next 3Y10.97%
98.05
+0.17 (+0.17%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryPassenger Airlines
Earnings (Last)
Earnings (Next)
Inst Owners93.32%
Inst Owner Change0.16%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap4.08B
Analysts83.33
Price Target154.89 (57.97%)
Short Float %5.04%
Short Ratio4.87
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.58% |
Yearly Dividend3.29
Dividend Growth(5Y)9.98%
DPN/A
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.69%
Min EPS beat(2)-1.23%
Max EPS beat(2)4.6%
EPS beat(4)3
Avg EPS beat(4)6.13%
Min EPS beat(4)-1.23%
Max EPS beat(4)20.34%
EPS beat(8)7
Avg EPS beat(8)10.63%
EPS beat(12)11
Avg EPS beat(12)17.83%
EPS beat(16)15
Avg EPS beat(16)44.34%
Revenue beat(2)0
Avg Revenue beat(2)-1.43%
Min Revenue beat(2)-1.82%
Max Revenue beat(2)-1.04%
Revenue beat(4)1
Avg Revenue beat(4)-0.92%
Min Revenue beat(4)-3.05%
Max Revenue beat(4)2.21%
Revenue beat(8)4
Avg Revenue beat(8)-0.07%
Revenue beat(12)6
Avg Revenue beat(12)-0.08%
Revenue beat(16)9
Avg Revenue beat(16)0.76%
PT rev (1m)0.39%
PT rev (3m)-0.36%
EPS NQ rev (1m)-4.64%
EPS NQ rev (3m)-21.44%
EPS NY rev (1m)0.37%
EPS NY rev (3m)-0.46%
Revenue NQ rev (1m)-1.03%
Revenue NQ rev (3m)-10.71%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)-1.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.73 | ||
| Fwd PE | 6.08 | ||
| P/S | 1.18 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.72 | ||
| P/tB | 1.79 | ||
| EV/EBITDA | N/A |
EPS(TTM)14.56
EY14.85%
EPS(NY)16.14
Fwd EY16.46%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS82.82
BVpS57.06
TBVpS54.73
PEG (NY)0.62
PEG (5Y)0.52
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.6% | ||
| ROE | 25.64% | ||
| ROCE | 17.46% | ||
| ROIC | 14.87% | ||
| ROICexc | 20.59% | ||
| ROICexgc | 21.25% | ||
| OM | 21.87% | ||
| PM (TTM) | 17.67% | ||
| GM | 62.03% | ||
| FCFM | N/A |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y31.09%
OM growth 5Y6.34%
PM growth 3Y82.62%
PM growth 5Y14.13%
GM growth 3Y-0.6%
GM growth 5Y-0.26%
F-ScoreN/A
Asset Turnover0.6
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.1 | ||
| Quick Ratio | 1.01 | ||
| Altman-Z | 2.38 |
F-ScoreN/A
WACC8.94%
ROIC/WACC1.66
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-13.18%
EPS 3Y492.5%
EPS 5Y12.92%
EPS Q2Q%-10.74%
EPS Next Y10.83%
EPS Next 2Y10.55%
EPS Next 3Y10.97%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.36%
Revenue growth 3Y31.64%
Revenue growth 5Y4.93%
Sales Q2Q%-3.92%
Revenue Next Year6.79%
Revenue Next 2Y7.9%
Revenue Next 3Y8.24%
Revenue Next 5YN/A
EBIT growth 1Y-6.67%
EBIT growth 3Y72.57%
EBIT growth 5Y11.59%
EBIT Next Year56.42%
EBIT Next 3Y21.67%
EBIT Next 5YN/A
FCF growth 1YN/A
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1YN/A
OCF growth 3YN/A
OCF growth 5YN/A