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 has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. A decent growth rate in combination with a cheap valuation! Better keep an eye on CPA. With these ratings, CPA could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
In the past year CPA was profitable.
In the past year CPA had a positive cash flow from operations.
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
CPA has a Return On Assets of 10.59%. This is amongst the best in the industry. CPA outperforms 100.00% of its industry peers.
With an excellent Return On Equity value of 24.54%, CPA belongs to the best of the industry, outperforming 90.91% of the companies in the same industry.
CPA has a better Return On Invested Capital (14.51%) 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 8.55%.
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
Looking at the Profit Margin, with a value of 17.64%, 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 Profit Margin of CPA has grown nicely.
The Operating Margin of CPA (21.75%) is better than 100.00% of its industry peers.
In the last couple of years the Operating Margin of CPA has grown nicely.
Looking at the Gross Margin, with a value of 61.94%, CPA is in the better half of the industry, outperforming 68.18% of the companies in the same industry.
CPA's Gross Margin has been stable in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), CPA 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.
Compared to 1 year ago, CPA has a worse debt to assets ratio.
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.
CPA has a Altman-Z score of 2.47. This is amongst the best in the industry. CPA outperforms 86.36% of its industry peers.
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.
A Debt/Equity ratio of 0.66 indicates that 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 | 2.47 |
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 better Current ratio (0.99) than 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
The earnings per share for CPA have decreased strongly by -13.67% 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.
Looking at the last year, CPA shows a decrease in Revenue. The Revenue has decreased by -0.90% in the last year.
The Revenue has been growing slightly by 4.94% on average over the past years.
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
The Earnings Per Share is expected to grow by 11.88% on average over the next years. This is quite good.
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
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
With a Price/Earnings ratio of 7.59, the valuation of CPA can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of CPA indicates a rather cheap valuation: CPA is cheaper than 90.91% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.28, CPA is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 6.02, the valuation of CPA can be described as very cheap.
Based on the Price/Forward Earnings ratio, CPA is valued cheaply inside the industry as 81.82% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of CPA to the average of the S&P500 Index (21.76), we can say CPA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.59 | ||
| Fwd PE | 6.02 |
4.2 Price Multiples
CPA's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. CPA is cheaper than 77.27% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CPA indicates a rather cheap valuation: CPA is cheaper than 95.45% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.57 | ||
| EV/EBITDA | 4.4 |
4.3 Compensation for Growth
CPA's 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)0.54
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.
CPA's Dividend Yield is rather good when compared to the industry average which is at 2.81. 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 2.42.
| 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 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)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%
111.18
+2.08 (+1.91%)
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 Cap4.58B
Analysts83.33
Price Target159.2 (43.19%)
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 | 7.59 | ||
| Fwd PE | 6.02 | ||
| P/S | 1.33 | ||
| P/FCF | 4.57 | ||
| P/OCF | 4.57 | ||
| P/B | 1.84 | ||
| P/tB | 1.92 | ||
| EV/EBITDA | 4.4 |
EPS(TTM)14.65
EY13.18%
EPS(NY)18.47
Fwd EY16.61%
FCF(TTM)24.32
FCFY21.88%
OCF(TTM)24.32
OCFY21.88%
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 | 2.47 |
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%