Copa Holdings, S.A.
Copa Holdings, S.A. Fundamental Analysis
Copa Holdings, S.A. (CPA) shows moderate financial fundamentals with a PE ratio of 8.75, profit margin of 18.56%, and ROE of 25.62%. The company generates $3.6B in annual revenue with weak year-over-year growth of -0.31%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 63.9/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze CPA's fundamental strength across five key dimensions:
Efficiency Score
ExcellentCPA demonstrates superior asset utilization.
Valuation Score
ModerateCPA shows balanced valuation metrics.
Growth Score
ModerateCPA shows steady but slowing expansion.
Financial Health Score
ExcellentCPA maintains a strong and stable balance sheet.
Profitability Score
ExcellentCPA achieves industry-leading margins.
Key Financial Metrics
Is CPA Expensive or Cheap?
P/E Ratio
CPA trades at 8.75 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, CPA's PEG of 7.41 indicates potential overvaluation.
Price to Book
The market values Copa Holdings, S.A. at 2.12 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 3.01 times EBITDA. This is generally considered low.
How Well Does CPA Make Money?
Net Profit Margin
For every $100 in sales, Copa Holdings, S.A. keeps $18.56 as profit after all expenses.
Operating Margin
Core operations generate 22.45 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $25.62 in profit for every $100 of shareholder equity.
ROA
Copa Holdings, S.A. generates $10.20 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Copa Holdings, S.A. generates strong operating cash flow of $1.12B, reflecting robust business health.
Free Cash Flow
Copa Holdings, S.A. generates strong free cash flow of $368.35M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $8.93 in free cash annually.
FCF Yield
CPA converts 6.27% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
8.75
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
7.41
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.12
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.62
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.92
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.23
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.26
vs 25 benchmark
ROA
Return on assets percentage
0.10
vs 25 benchmark
ROCE
Return on capital employed
0.16
vs 25 benchmark
How CPA Stacks Against Its Sector Peers
| Metric | CPA Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 8.75 | 26.49 | Better (Cheaper) |
| ROE | 25.62% | 1307.00% | Weak |
| Net Margin | 18.56% | -5131.00% (disorted) | Strong |
| Debt/Equity | 0.92 | 0.81 | Neutral |
| Current Ratio | 1.23 | 10.48 | Neutral |
| ROA | 10.20% | -1549792.00% (disorted) | Strong |
CPA outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Copa Holdings, S.A.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
28.75%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
149.19%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
28.78%
Industry Style: Cyclical, Value, Infrastructure
High Growth