Copa Holdings SA (CPA) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Copa Holdings SA

Delta Air Lines, Inc.

Southwest Airlines Co.

Air Transport Services Group, Inc.

United Airlines Holdings, Inc.

SkyWest, Inc.

Allegiant Travel Co.

Alaska Air Group, Inc.

JetBlue Airways Corp.

American Airlines Group, Inc.

Spirit Airlines, Inc.

Why is Copa Holdings SA ?

High Management Efficiency with a high ROCE of 18.94%

Strong Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 18.94%

Flat results in Jun 25

INVENTORY TURNOVER RATIO(HY) Lowest at 18.38 times
DEBTORS TURNOVER RATIO(HY) Lowest at 18.48 times

With ROCE of 23.13%, it has a very attractive valuation with a 1.72 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 29.53%, its profits have risen by 8.4% ; the PEG ratio of the company is 0.8

Market Beating Performance

The stock has generated a return of 29.53% in the last 1 year, much higher than market (S&P 500) returns of 14.11%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Copa Holdings SA should be less than 10%
Overall Portfolio exposure to Airline should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Airline)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Copa Holdings SA for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Copa Holdings SA

19.98%

0.87

29.30%

S&P 500

20.12%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

35.61%

EBIT Growth (5y)

40.28%

EBIT to Interest (avg)

4.25

Debt to EBITDA (avg)

1.79

Net Debt to Equity (avg)

0.31

Sales to Capital Employed (avg)

0.87

Tax Ratio

13.72%

Dividend Payout Ratio

39.56%

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

18.94%

ROE (avg)

18.44%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.22

EV to EBIT

8.41

EV to EBITDA

5.82

EV to Capital Employed

1.94

EV to Sales

1.86

PEG Ratio

1.48

Dividend Yield

ROCE (Latest)

23.01%

ROE (Latest)

24.99%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

5What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 1,123.77 MM

CASH AND EQV(HY)

Highest at USD 2,329.67 MM

NET SALES(Q)

Highest at USD 962.89 MM

OPERATING PROFIT(Q)

Highest at USD 306.97 MM

-11What is not working for the Company

ROCE(HY)

Lowest at 26.09%

INVENTORY TURNOVER RATIO(HY)

Lowest at 17.55 times

INTEREST COVERAGE RATIO(Q)

Lowest at 1,117.16

RAW MATERIAL COST(Y)

Grown by 6.62% (YoY

INTEREST(Q)

Highest at USD 27.48 MM

EPS(Q)

Lowest at USD 0

Here's what is working for Copa Holdings SA

Operating Cash Flow

Highest at USD 1,123.77 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Net Sales

Highest at USD 962.89 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Operating Profit

Highest at USD 306.97 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (USD MM)

Cash and Eqv

Highest at USD 2,329.67 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Depreciation

Highest at USD 97.39 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for Copa Holdings SA

Interest

At USD 27.48 MM has Grown at 12.63%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Interest Coverage Ratio

Lowest at 1,117.16

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Inventory Turnover Ratio

Lowest at 17.55 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Interest

Highest at USD 27.48 MM

in the last five periods and Increased by 12.63% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

EPS

Lowest at USD 0

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)

Raw Material Cost

Grown by 6.62% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales