NYSE:CPA

Stock Analysis Report

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Market Cap

US$3.3b

Last Updated

2021/06/13 22:29 UTC

Data Sources

Company Financials +

Executive Summary

Copa Holdings, S.A., through its subsidiaries, provides airline passenger and cargo services. More Details


Snowflake Analysis

High growth potential with worrying balance sheet.


Similar Companies

Share Price & News

How has Copa Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CPA is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: CPA's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

1.4%

CPA

-1.1%

US Airlines

0.8%

US Market


1 Year Return

44.2%

CPA

57.4%

US Airlines

44.4%

US Market

Return vs Industry: CPA underperformed the US Airlines industry which returned 57.4% over the past year.

Return vs Market: CPA matched the US Market which returned 44.3% over the past year.


Shareholder returns

CPAIndustryMarket
7 Day1.4%-1.1%0.8%
30 Day-6.9%-4.1%3.0%
90 Day-15.0%-9.8%4.4%
1 Year44.2%44.2%57.4%57.4%46.7%44.4%
3 Year-18.5%-23.0%-2.7%-4.3%60.3%50.4%
5 Year64.1%47.8%34.0%29.8%128.3%102.8%

Long-Term Price Volatility Vs. Market

How volatile is Copa Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Copa Holdings undervalued compared to its fair value and its price relative to the market?

2.8x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: CPA ($77) is trading above our estimate of fair value ($18.61)

Significantly Below Fair Value: CPA is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: CPA is unprofitable, so we can't compare its PE Ratio to the Global Airlines industry average.

PE vs Market: CPA is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate CPA's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: CPA's PB Ratio (2.8x) is in line with the US Airlines industry average.


Future Growth

How is Copa Holdings forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

83.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CPA is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2%).

Earnings vs Market: CPA is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: CPA's is expected to become profitable in the next 3 years.

Revenue vs Market: CPA's revenue (36.8% per year) is forecast to grow faster than the US market (9.3% per year).

High Growth Revenue: CPA's revenue (36.8% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CPA's Return on Equity is forecast to be low in 3 years time (13.8%).


Past Performance

How has Copa Holdings performed over the past 5 years?

-33.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CPA is currently unprofitable.

Growing Profit Margin: CPA is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: CPA is unprofitable, and losses have increased over the past 5 years at a rate of 33.1% per year.

Accelerating Growth: Unable to compare CPA's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: CPA is unprofitable, making it difficult to compare its past year earnings growth to the Airlines industry (10.3%).


Return on Equity

High ROE: CPA has a negative Return on Equity (-67.46%), as it is currently unprofitable.


Financial Health

How is Copa Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: CPA's short term assets ($1.4B) exceed its short term liabilities ($936.0M).

Long Term Liabilities: CPA's short term assets ($1.4B) do not cover its long term liabilities ($2.0B).


Debt to Equity History and Analysis

Debt Level: CPA's debt to equity ratio (124.9%) is considered high.

Reducing Debt: CPA's debt to equity ratio has increased from 47.7% to 124.9% over the past 5 years.

Debt Coverage: CPA's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if CPA's interest payments on its debt are well covered by EBIT.


Balance Sheet


Dividend

What is Copa Holdings's current dividend yield, its reliability and sustainability?

1.78%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate CPA's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate CPA's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if CPA's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if CPA's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: CPA is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CPA's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

7.2yrs

Average management tenure


CEO

Pedro Heilbron (62 yo)

33.42yrs

Tenure

Mr. Pedro Heilbron has been Chairman of the Chief Executive Board at Star Alliance Services GmbH since December 2016. Mr. Heilbron serves as the Chief Executive Officer at Compañía Panameña de Aviación, S....


Leadership Team

Experienced Management: CPA's management team is seasoned and experienced (7.2 years average tenure).


Board Members

Experienced Board: CPA's board of directors are considered experienced (6.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Copa Holdings, S.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Copa Holdings, S.A.
  • Ticker: CPA
  • Exchange: NYSE
  • Founded: 1947
  • Industry: Airlines
  • Sector: Transportation
  • Market Cap: US$3.283b
  • Shares outstanding: 42.64m
  • Website: https://copa.gcs-web.com

Number of Employees


Location

  • Copa Holdings, S.A.
  • Boulevard Costa del Este
  • Av. Principal y Av. de la Rotonda
  • Panama City
  • Panama

Listings


Biography

Copa Holdings, S.A., through its subsidiaries, provides airline passenger and cargo services. The company offers approximately 104 daily scheduled flights to 54 destinations in 25 countries in North, Centr...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/13 22:29
End of Day Share Price2021/06/11 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.