COPA HOLDINGS SA-CLASS A (CPA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CPA - PAP310761054 - Common Stock
136.62 USD
+2.61 (+1.95%)
136.62 USD
0 (0%)
Overall CPA gets a fundamental rating of 7 out of 10. We evaluated CPA against 22 industry peers in the Passenger Airlines industry. CPA scores excellent on profitability, but there are some minor concerns on its financial health. CPA scores decently on growth, while it is valued quite cheap. This could make an interesting combination. 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
- Looking at the Return On Assets, with a value of 10.59%, CPA belongs to the top of the industry, outperforming 95.45% of the companies in the same industry.
- CPA has a Return On Equity of 24.91%. This is amongst the best in the industry. CPA outperforms 90.91% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 14.07%, CPA belongs to the top of the industry, outperforming 86.36% of the companies in the same industry.
- CPA had an Average Return On Invested Capital over the past 3 years of 14.48%. This is significantly below the industry average of 20.56%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.59% | ||
| ROE | 24.91% | ||
| ROIC | 14.07% |
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 (18.81%) than 100.00% of its industry peers.
- CPA's Profit Margin has improved in the last couple of years.
- The Operating Margin of CPA (22.82%) is better than 100.00% of its industry peers.
- CPA's Operating Margin has improved in the last couple of years.
- The Gross Margin of CPA (63.15%) 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 | 22.82% | ||
| PM (TTM) | 18.81% | ||
| GM | 63.15% |
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.
- CPA has less shares outstanding than it did 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 2.53 indicates that CPA is not a great score, but indicates only limited risk for bankruptcy at the moment.
- The Altman-Z score of CPA (2.53) is better than 90.91% of its industry peers.
- CPA has a debt to FCF ratio of 4.89. This is a neutral value as CPA would need 4.89 years to pay back of all of its debts.
- With an excellent Debt to FCF ratio value of 4.89, CPA belongs to the best of the industry, outperforming 86.36% of the companies in the same industry.
- CPA has a Debt/Equity ratio of 0.71. This is a neutral value indicating CPA is somewhat dependend on debt financing.
- CPA has a Debt to Equity ratio of 0.71. This is in the better half of the industry: CPA outperforms 77.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 4.89 | ||
| Altman-Z | 2.53 |
ROIC/WACC1.53
WACC9.18%
2.3 Liquidity
- A Current Ratio of 1.06 indicates that CPA should not have too much problems paying its short term obligations.
- Looking at the Current ratio, with a value of 1.06, CPA belongs to the top of the industry, outperforming 95.45% of the companies in the same industry.
- A Quick Ratio of 0.95 indicates that CPA may have some problems paying its short term obligations.
- With an excellent Quick ratio value of 0.95, CPA belongs to the best of the industry, outperforming 95.45% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.06 | ||
| Quick Ratio | 0.95 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 6.91% over the past 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 been growing slightly by 1.53% in the past 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)6.91%
EPS 3Y492.5%
EPS 5Y12.92%
EPS Q2Q%20%
Revenue 1Y (TTM)1.53%
Revenue growth 3Y31.66%
Revenue growth 5Y4.94%
Sales Q2Q%6.84%
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 11.52% yearly.
- The Revenue is expected to grow by 7.65% on average over the next years.
EPS Next Y14.41%
EPS Next 2Y11.88%
EPS Next 3Y11.47%
EPS Next 5Y11.52%
Revenue Next Year5.2%
Revenue Next 2Y8.04%
Revenue Next 3Y7.89%
Revenue Next 5Y7.65%
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.
- 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 reasonably with a Price/Earnings ratio of 8.50.
- Based on the Price/Earnings ratio, CPA is valued cheaper than 100.00% of the companies in the same industry.
- CPA is valuated cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 7.50, the valuation of CPA can be described as very cheap.
- Based on the Price/Forward Earnings ratio, CPA is valued cheaper than 100.00% of the companies in the same industry.
- CPA is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.5 | ||
| Fwd PE | 7.5 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, CPA is valued cheaper than 86.36% of the companies in the same industry.
- 81.82% 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 | 12.64 | ||
| EV/EBITDA | 5.23 |
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)0.59
PEG (5Y)0.66
EPS Next 2Y11.88%
EPS Next 3Y11.47%
5. Dividend
5.1 Amount
- CPA has a Yearly Dividend Yield of 4.82%, which is a nice return.
- CPA's Dividend Yield is rather good when compared to the industry average which is at 0.83. CPA pays more dividend than 100.00% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.81, CPA pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.82% |
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.
- 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 2Y11.88%
EPS Next 3Y11.47%
COPA HOLDINGS SA-CLASS A / CPA FAQ
What is the fundamental rating for CPA stock?
ChartMill assigns a fundamental rating of 7 / 10 to CPA.
What is the valuation status for CPA stock?
ChartMill assigns a valuation rating of 9 / 10 to COPA HOLDINGS SA-CLASS A (CPA). This can be considered as Undervalued.
How profitable is COPA HOLDINGS SA-CLASS A (CPA) stock?
COPA HOLDINGS SA-CLASS A (CPA) has a profitability rating of 8 / 10.
What is the valuation of COPA HOLDINGS SA-CLASS A based on its PE and PB ratios?
The Price/Earnings (PE) ratio for COPA HOLDINGS SA-CLASS A (CPA) is 8.5 and the Price/Book (PB) ratio is 2.11.