COPA HOLDINGS SA-CLASS A (CPA) Stock Fundamental Analysis
NYSE:CPA - New York Stock Exchange, Inc. - PAP310761054 - Common Stock - Currency: USD
Overall CPA gets a fundamental rating of 7 out of 10. We evaluated CPA against 22 industry peers in the Passenger Airlines industry. CPA gets an excellent profitability rating and is at the same time showing great financial health properties. CPA scores decently on growth, while it is valued quite cheap. This could make an interesting combination. These ratings would make CPA suitable for value investing!
1. Profitability
1.1 Basic Checks
In the past year CPA was profitable.
CPA had a positive operating cash flow in the past year.
Of the past 5 years CPA 4 years were profitable.
CPA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of CPA (10.59%) is better than 100.00% of its industry peers.
CPA's Return On Equity of 24.54% is amongst the best of the industry. CPA outperforms 86.36% of its industry peers.
The Return On Invested Capital of CPA (14.51%) is better than 86.36% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CPA is significantly above the industry average of 8.50%.
The 3 year average ROIC (14.48%) for CPA is below the current ROIC(14.51%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.59% | ||
| ROE | 24.54% | ||
| ROIC | 14.51% |
ROA(3y)9.3%
ROA(5y)2.64%
ROE(3y)24.4%
ROE(5y)5.85%
ROIC(3y)14.48%
ROIC(5y)N/A
1.3 Margins
The Profit Margin of CPA (17.64%) is better than 100.00% of its industry peers.
CPA's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 21.75%, 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 (61.94%) is better than 68.18% 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 | 21.75% | ||
| PM (TTM) | 17.64% | ||
| GM | 61.94% |
OM growth 3Y31.04%
OM growth 5Y6.32%
PM growth 3Y82.55%
PM growth 5Y14.1%
GM growth 3Y-0.59%
GM growth 5Y-0.26%
2. Health
2.1 Basic Checks
CPA has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for CPA has been reduced compared to 1 year ago.
The number of shares outstanding for CPA has been reduced compared to 5 years ago.
CPA has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.47 indicates that CPA is not a great score, but indicates only limited risk for bankruptcy at the moment.
With an excellent Altman-Z score value of 2.47, CPA belongs to the best of the industry, outperforming 86.36% of the companies in the same industry.
CPA has a debt to FCF ratio of 1.94. This is a very positive value and a sign of high solvency as it would only need 1.94 years to pay back of all of its debts.
CPA's Debt to FCF ratio of 1.94 is amongst the best of the industry. CPA outperforms 95.45% of its industry peers.
CPA has a Debt/Equity ratio of 0.66. This is a neutral value indicating CPA is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.66, CPA is in the better half of the industry, outperforming 77.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 1.94 | ||
| Altman-Z | 2.47 |
ROIC/WACC1.59
WACC9.12%
2.3 Liquidity
CPA has a Current Ratio of 0.99. This is a bad value and indicates that CPA is not financially healthy enough and could expect problems in meeting its short term obligations.
CPA has a Current ratio of 0.99. This is amongst the best in the industry. CPA outperforms 86.36% of its industry peers.
A Quick Ratio of 0.88 indicates that CPA may have some problems paying its short term obligations.
The Quick ratio of CPA (0.88) is better than 86.36% of its industry peers.
CPA does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.88 |
3. Growth
3.1 Past
CPA shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -13.67%.
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 -0.90% in the past year.
CPA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.94% yearly.
EPS 1Y (TTM)-13.67%
EPS 3Y492.5%
EPS 5Y12.92%
EPS Q2Q%2.15%
Revenue 1Y (TTM)-0.9%
Revenue growth 3Y31.66%
Revenue growth 5Y4.94%
Sales Q2Q%0.64%
3.2 Future
CPA is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.88% yearly.
CPA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.42% yearly.
EPS Next Y14.15%
EPS Next 2Y12.62%
EPS Next 3Y11.88%
EPS Next 5YN/A
Revenue Next Year4.57%
Revenue Next 2Y6.89%
Revenue Next 3Y7.42%
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
CPA is valuated cheaply with a Price/Earnings ratio of 7.38.
CPA's Price/Earnings ratio is rather cheap when compared to the industry. CPA is cheaper than 100.00% 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 27.50.
CPA is valuated cheaply with a Price/Forward Earnings ratio of 5.86.
Based on the Price/Forward Earnings ratio, CPA is valued cheaply inside the industry as 90.91% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of CPA to the average of the S&P500 Index (36.44), we can say CPA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.38 | ||
| Fwd PE | 5.86 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CPA indicates a somewhat cheap valuation: CPA is cheaper than 77.27% of the companies listed in the same industry.
95.45% of the companies in the same industry are more expensive than CPA, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.45 | ||
| EV/EBITDA | 4.41 |
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.
CPA has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)0.52
PEG (5Y)0.57
EPS Next 2Y12.62%
EPS Next 3Y11.88%
5. Dividend
5.1 Amount
CPA has a Yearly Dividend Yield of 5.67%, which is a nice return.
Compared to an average industry Dividend Yield of 2.73, CPA pays a better dividend. On top of this CPA pays more dividend than 100.00% of the companies listed in the same industry.
CPA's Dividend Yield is rather good when compared to the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.67% |
5.2 History
On average, the dividend of CPA grows each year by 17.30%, which is quite nice.
CPA has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of CPA decreased recently.
Dividend Growth(5Y)17.3%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
The dividend of CPA is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DPN/A
EPS Next 2Y12.62%
EPS Next 3Y11.88%
108.13
-1.16 (-1.06%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryPassenger Airlines
Earnings (Last)
Earnings (Next)
Inst Owners100.65%
Inst Owner Change-0.03%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap4.45B
Analysts83.33
Price Target159.2 (47.23%)
Short Float %5.81%
Short Ratio4.97
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.67% |
Yearly Dividend6.47
Dividend Growth(5Y)17.3%
DPN/A
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.67%
Min EPS beat(2)4.6%
Max EPS beat(2)6.74%
EPS beat(4)3
Avg EPS beat(4)2.73%
Min EPS beat(4)-1.23%
Max EPS beat(4)6.74%
EPS beat(8)7
Avg EPS beat(8)9.47%
EPS beat(12)11
Avg EPS beat(12)9.32%
EPS beat(16)15
Avg EPS beat(16)44.21%
Revenue beat(2)1
Avg Revenue beat(2)-0.41%
Min Revenue beat(2)-1.04%
Max Revenue beat(2)0.22%
Revenue beat(4)1
Avg Revenue beat(4)-1.42%
Min Revenue beat(4)-3.05%
Max Revenue beat(4)0.22%
Revenue beat(8)4
Avg Revenue beat(8)-0.33%
Revenue beat(12)6
Avg Revenue beat(12)-0.18%
Revenue beat(16)10
Avg Revenue beat(16)1.41%
PT rev (1m)1.15%
PT rev (3m)2.97%
EPS NQ rev (1m)-1.98%
EPS NQ rev (3m)-3.82%
EPS NY rev (1m)1.02%
EPS NY rev (3m)3.96%
Revenue NQ rev (1m)-0.58%
Revenue NQ rev (3m)-3.01%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)-1.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.38 | ||
| Fwd PE | 5.86 | ||
| P/S | 1.29 | ||
| P/FCF | 4.45 | ||
| P/OCF | 4.45 | ||
| P/B | 1.79 | ||
| P/tB | 1.87 | ||
| EV/EBITDA | 4.41 |
EPS(TTM)14.65
EY13.55%
EPS(NY)18.47
Fwd EY17.08%
FCF(TTM)24.32
FCFY22.49%
OCF(TTM)24.32
OCFY22.49%
SpS83.85
BVpS60.27
TBVpS57.9
PEG (NY)0.52
PEG (5Y)0.57
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.59% | ||
| ROE | 24.54% | ||
| ROCE | 17.04% | ||
| ROIC | 14.51% | ||
| ROICexc | 18.31% | ||
| ROICexgc | 18.84% | ||
| OM | 21.75% | ||
| PM (TTM) | 17.64% | ||
| GM | 61.94% | ||
| FCFM | 29.01% |
ROA(3y)9.3%
ROA(5y)2.64%
ROE(3y)24.4%
ROE(5y)5.85%
ROIC(3y)14.48%
ROIC(5y)N/A
ROICexc(3y)19.38%
ROICexc(5y)N/A
ROICexgc(3y)20.04%
ROICexgc(5y)N/A
ROCE(3y)17.01%
ROCE(5y)N/A
ROICexcg growth 3Y42.26%
ROICexcg growth 5Y4.3%
ROICexc growth 3Y42.93%
ROICexc growth 5Y4.63%
OM growth 3Y31.04%
OM growth 5Y6.32%
PM growth 3Y82.55%
PM growth 5Y14.1%
GM growth 3Y-0.59%
GM growth 5Y-0.26%
F-Score4
Asset Turnover0.6
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 1.94 | ||
| Debt/EBITDA | 1.52 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 92.59% | ||
| Profit Quality | 164.47% | ||
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.88 | ||
| Altman-Z | 2.47 |
F-Score4
WACC9.12%
ROIC/WACC1.59
Cap/Depr(3y)168.74%
Cap/Depr(5y)124.12%
Cap/Sales(3y)15.49%
Cap/Sales(5y)13.7%
Profit Quality(3y)92.06%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-13.67%
EPS 3Y492.5%
EPS 5Y12.92%
EPS Q2Q%2.15%
EPS Next Y14.15%
EPS Next 2Y12.62%
EPS Next 3Y11.88%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.9%
Revenue growth 3Y31.66%
Revenue growth 5Y4.94%
Sales Q2Q%0.64%
Revenue Next Year4.57%
Revenue Next 2Y6.89%
Revenue Next 3Y7.42%
Revenue Next 5YN/A
EBIT growth 1Y-9.55%
EBIT growth 3Y72.54%
EBIT growth 5Y11.57%
EBIT Next Year58.69%
EBIT Next 3Y18.45%
EBIT Next 5YN/A
FCF growth 1Y26.33%
FCF growth 3Y5.63%
FCF growth 5Y-13.35%
OCF growth 1Y26.33%
OCF growth 3Y25.25%
OCF growth 5Y4.9%