Price to trailing twelve month operating cash flow for CPA is currently 2.82, higher than only 16.78% of US stocks with positive operating cash flow.
Of note is the ratio of Copa Holdings SA's sales and general administrative expense to its total operating expenses; only 14.04% of US stocks have a lower such ratio.
Copa Holdings SA's shareholder yield -- a measure of how much capital is returned to stockholders via dividends and buybacks -- is 22.62%, greater than the shareholder yield of 89.92% of stocks in our set.
Stocks with similar financial metrics, market capitalization, and price volatility to Copa Holdings SA are TIPT, FET, NES, RFP, and KEX.
Copa Holdings, S.A. Copa Holdings, S.A. (CPA) Company Bio
Copa Holdings is a leading Latin American provider of passenger and cargo services. The Company, through its operating subsidiaries, provides service to 74 destinations in 30 countries in North, Central and South America and the Caribbean. The company was founded in 1947 and is based in Panama City, Panama.
CPA Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for CPA, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Copa Holdings SA ranked in the 91th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 1916.5% on a DCF basis. The most interesting components of our discounted cash flow analysis for Copa Holdings SA ended up being:
The compound growth rate in the free cash flow of Copa Holdings SA over the past 4.95 years is 0.4%; that's better than 84.19% of cash flow producing equities in the Industrials sector, where it is classified.
Copa Holdings SA's weighted average cost of capital (WACC) is 7%; for context, that number is higher than merely 11.63% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
NPO, HEES, POWL, ESOA, and TRTN can be thought of as valuation peers to CPA, in the sense that they are in the Industrials sector and have a similar price forecast based on DCF valuation.
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Ladies and gentlemen, thank you for standing by, and welcome to the Copa Holdings First Quarter Earnings Call. Joining us today are Pedro Heilbron, CEO of Copa Holdings; and Jose Montero, our CFO. First, Pedro will start with our first quarter highlights, followed by Jose, who will discuss our financial results.