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 7 out of 10 to CPA. CPA was compared to 22 industry peers in the Passenger Airlines industry. CPA scores excellent points on both the profitability and health parts. This is a solid base for a good stock. CPA may be a bit undervalued, certainly considering the very reasonable score on growth These ratings would make CPA suitable for value investing!
1. Profitability
1.1 Basic Checks
CPA had positive earnings in the past year.
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 has a better Return On Equity (24.54%) than 90.91% of its industry peers.
The Return On Invested Capital of CPA (14.51%) is better than 86.36% of its industry peers.
CPA had an Average Return On Invested Capital over the past 3 years of 14.48%. This is significantly above the industry average of 8.55%.
The last Return On Invested Capital (14.51%) for CPA is above the 3 year average (14.48%), which is a sign of increasing profitability.
| 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
CPA has a better Profit Margin (17.64%) 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.
CPA's Operating Margin has improved in the last couple of years.
CPA's Gross Margin of 61.94% is fine compared to the rest of the industry. CPA outperforms 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so CPA is still creating some value.
Compared to 1 year ago, CPA has less shares outstanding
The number of shares outstanding for CPA has been reduced compared to 5 years ago.
Compared to 1 year ago, CPA has a worse debt to assets ratio.
2.2 Solvency
CPA has an Altman-Z score of 2.49. 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.
CPA's Altman-Z score of 2.49 is amongst the best of the industry. CPA outperforms 86.36% of its industry peers.
The Debt to FCF ratio of CPA is 1.94, which is an excellent value as it means it would take CPA, only 1.94 years of fcf income to pay off all of its debts.
CPA has a Debt to FCF ratio of 1.94. This is amongst the best in 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.
CPA's Debt to Equity ratio of 0.66 is fine compared to the rest of the industry. CPA outperforms 77.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 1.94 | ||
| Altman-Z | 2.49 |
ROIC/WACC1.65
WACC8.77%
2.3 Liquidity
A Current Ratio of 0.99 indicates that CPA may have some problems paying 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.
Looking at the last year, CPA shows a decrease in Revenue. The Revenue has decreased by -0.90% in the last year.
Measured over the past years, CPA shows a small growth in Revenue. The Revenue has been growing by 4.94% on average per year.
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
Based on estimates for the next years, CPA will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.88% on average per year.
Based on estimates for the next years, CPA will show a small growth in Revenue. The Revenue will grow by 7.42% on average per year.
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
The EPS growth rate is stable: in the next years the growth will be about the same 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.
4. Valuation
4.1 Price/Earnings Ratio
CPA is valuated cheaply with a Price/Earnings ratio of 7.62.
Based on the Price/Earnings ratio, CPA is valued cheaper than 90.91% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.45. CPA is valued rather cheaply when compared to this.
CPA is valuated cheaply with a Price/Forward Earnings ratio of 6.05.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CPA indicates a rather cheap valuation: CPA is cheaper than 81.82% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.90, CPA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.62 | ||
| Fwd PE | 6.05 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CPA is valued a bit cheaper than 77.27% of the companies 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 | 4.59 | ||
| EV/EBITDA | 4.48 |
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 excellent profitability rating of CPA may justify a higher PE ratio.
PEG (NY)0.54
PEG (5Y)0.59
EPS Next 2Y12.62%
EPS Next 3Y11.88%
5. Dividend
5.1 Amount
CPA has a Yearly Dividend Yield of 6.02%, which is a nice return.
Compared to an average industry Dividend Yield of 2.81, CPA pays a better dividend. On top of this CPA pays more dividend than 100.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.42, CPA pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.02% |
5.2 History
On average, the dividend of CPA grows each year by 17.30%, which is quite nice.
CPA has paid a dividend for at least 10 years, which is 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%
111.64
+0.46 (+0.41%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryPassenger Airlines
Earnings (Last)
Earnings (Next)
Inst Owners100.65%
Inst Owner Change-1%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap4.60B
Analysts83.33
Price Target159.2 (42.6%)
Short Float %5.27%
Short Ratio4.71
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.02% |
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)2.97%
PT rev (3m)2.78%
EPS NQ rev (1m)3.15%
EPS NQ rev (3m)-1.87%
EPS NY rev (1m)1.02%
EPS NY rev (3m)3.96%
Revenue NQ rev (1m)0.76%
Revenue NQ rev (3m)-2.45%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)-1.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.62 | ||
| Fwd PE | 6.05 | ||
| P/S | 1.33 | ||
| P/FCF | 4.59 | ||
| P/OCF | 4.59 | ||
| P/B | 1.85 | ||
| P/tB | 1.93 | ||
| EV/EBITDA | 4.48 |
EPS(TTM)14.65
EY13.12%
EPS(NY)18.47
Fwd EY16.54%
FCF(TTM)24.32
FCFY21.79%
OCF(TTM)24.32
OCFY21.79%
SpS83.85
BVpS60.27
TBVpS57.9
PEG (NY)0.54
PEG (5Y)0.59
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 | 2.49 |
F-Score4
WACC8.77%
ROIC/WACC1.65
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%