Copa Holdings (CPA) AI Stock Analysis

• Market Cap: $5.09B
• Dividend Yield: 5.69%
• Average Volume (3M): 197.02K
• Price to Earnings (P/E): 8.0
• Beta (1Y): 0.54
• Revenue Growth: -0.69%
• EPS Growth: -5.49%
• Country: US
• Employees: 7,909
• Sector: Industrials
• Sector Strength: 72
• Industry: Airlines, Airports & Air Services
• EPS (TTM): 4.20
• Shares Outstanding: 30,234,830
• 10 Day Avg. Volume: 194,866
• 30 Day Avg. Volume: 197,016
• PEG Ratio: 0.44
• Price to Book (P/B): 1.55
• Price to Sales (P/S): 1.07
• P/FCF Ratio: 10.79
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $161.00
• Price Target Upside: 42.34% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 79 Outperform
• Price Target: $145.00 ▲(28.19% Upside)

Copa Holdings' strong financial performance and attractive valuation are the most significant factors driving the score. The positive earnings call further supports the outlook, despite challenges in cash flow management and potential yield pressures.

Positive Factors

Operational Efficiency

Copa's efficient operations and high load factor demonstrate strong capacity utilization, enhancing profitability and competitive positioning.

Fleet Expansion

Expanding the fleet with modern aircraft supports Copa's growth strategy, improving fuel efficiency and capacity for future demand.

Strong Cash Position

A strong cash position provides financial flexibility for strategic investments and buffers against economic downturns.

Negative Factors

Cash Flow Management

Negative free cash flow growth indicates potential liquidity challenges, limiting the ability to fund operations and growth initiatives.

Passenger Yield Pressure

Decreasing passenger yields suggest competitive pressures, which can impact revenue generation and profitability over time.

Debt Levels

Rising debt levels may strain financial resources, impacting long-term financial stability and ability to invest in growth.

Copa Holdings Business Overview & Revenue Model

Company Description

Copa Holdings is a leading Latin American provider of airline services headquartered in Panama City, Panama. The company operates two main subsidiaries: Copa Airlines and Copa Airlines Colombia, offering passenger and cargo transportation services across a vast network that covers more than 80 destinations in over 30 countries in North, Central, and South America, as well as the Caribbean. Copa Holdings is known for its focus on operational efficiency and customer service, providing a range of travel-related services including frequent flyer programs and cargo services.

How the Company Makes Money

Copa Holdings generates revenue primarily through the sale of passenger tickets, which constitutes the bulk of its earnings. The company employs a hub-and-spoke model, allowing it to connect a wide array of routes efficiently, thereby maximizing seat occupancy and optimizing flight schedules. Additionally, Copa Holdings earns revenue from cargo services, which include the transport of goods and freight. Ancillary revenue streams also contribute to the company's income, including fees from services such as seat selection, baggage handling, and in-flight sales. The company has established strategic partnerships with other airlines and travel agencies, enhancing its reach and customer base. Economic factors, such as demand for air travel and fuel prices, also significantly impact its revenue generation.

Copa Holdings Financial Statement Overview

Summary

Copa Holdings shows strong revenue growth and profitability with a stable balance sheet. However, cash flow management is a concern due to negative free cash flow growth, indicating potential liquidity challenges.

Income Statement

Copa Holdings has demonstrated strong revenue growth with a TTM revenue growth rate of 67.2%, indicating a robust recovery post-pandemic. The company maintains healthy profitability margins with a gross profit margin of 36.21% and a net profit margin of 18.36% in the TTM. EBIT and EBITDA margins are also strong at 23.72% and 30.97%, respectively, showcasing efficient operational management. However, the slight decline in gross profit margin from the previous year suggests potential cost pressures.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.80, indicating manageable leverage. Return on equity is impressive at 26.22%, highlighting effective use of shareholder funds. The equity ratio stands at 42.67%, suggesting a solid capital structure. However, the increase in total debt over the years requires monitoring to ensure it remains sustainable.

Cash Flow

Copa Holdings faces challenges in cash flow management, with a negative free cash flow growth rate of -101.68% in the TTM. The operating cash flow to net income ratio is 0.73, indicating decent cash generation from operations. However, the negative free cash flow to net income ratio suggests that capital expenditures may be outpacing cash generation, which could impact future liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.53B	3.45B	3.46B	2.97B	1.51B	801.00M
Gross Profit	1.30B	1.23B	1.47B	800.27M	550.06M	-229.00M
EBITDA	1.21B	1.12B	1.08B	741.68M	370.51M	-298.40M
Net Income	665.21M	608.53M	514.10M	348.05M	43.84M	-607.06M
Balance Sheet
Total Assets	6.28B	5.74B	5.20B	4.69B	4.25B	3.85B
Cash, Cash Equivalents and Short-Term Investments	991.51M	1.20B	915.18M	934.75M	1.02B	889.88M
Total Debt	2.17B	2.00B	1.75B	1.68B	1.60B	1.39B
Total Liabilities	3.61B	3.37B	3.07B	3.20B	2.95B	2.57B
Stockholders Equity	2.67B	2.37B	2.12B	1.49B	1.30B	1.28B
Cash Flow
Free Cash Flow	-272.94M	340.51M	214.91M	90.26M	-32.71M	-100.00M
Operating Cash Flow	1.09B	996.85M	1.04B	740.95M	462.61M	-39.52M
Investing Cash Flow	-1.04B	-343.14M	-543.00M	-552.15M	-459.13M	-93.76M
Financing Cash Flow	-48.36M	-219.65M	-394.03M	-273.69M	88.54M	93.61M

Copa Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 113.11
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CPA, the sentiment is Negative. The current price of 113.11 is below the 20-day moving average (MA) of 124.64, below the 50-day MA of 122.77, and above the 200-day MA of 105.98, indicating a neutral trend. The MACD of -0.45 indicates Positive momentum. The RSI at 31.10 is Neutral, neither overbought nor oversold. The STOCH value of 32.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CPA.

Copa Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CPA	79 Outperform	$5.09B	8.01	26.60%	5.69%	-0.69%	-5.49%
SKYW	70 Outperform	$3.74B	8.90	17.42%	―	19.27%	78.26%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
ALK	56 Neutral	$4.48B	30.99	3.53%	―	31.50%	-49.15%
ALGT	52 Neutral	$1.13B	―	-25.37%	―	3.29%	-983.31%
JBLU	45 Neutral	$1.49B	―	-19.09%	―	-2.49%	47.88%
ULCC	44 Neutral	$858.57M	―	-27.87%	―	1.77%	-1964.48%

Copa Holdings Corporate Events

Copa Holdings Reports Strong Q3 2025 Financial Results and Fleet Expansion

Copa Holdings reported strong financial results for the third quarter of 2025, with a net profit of $173.4 million, marking an 18.7% increase from the previous year. The company achieved an operating margin of 23.2% and a net margin of 19.0%, supported by disciplined cost management and robust demand. The airline expanded its fleet with new Boeing aircraft and maintained high on-time performance, reinforcing its competitive position in the Latin American aviation market. Additionally, Copa Holdings announced a dividend payment and continued to strengthen its liquidity position, ending the quarter with $1.3 billion in cash and investments.

Copa Holdings Reports Increased Traffic and Capacity for September 2025

Copa Holdings reported a 5.2% increase in capacity (ASMs) and a 6.4% rise in passenger traffic (RPMs) for September 2025 compared to the same month in 2024. This growth resulted in a system load factor of 86.9%, which is 1.0 percentage points higher than September 2024, indicating improved utilization of aircraft seating capacity.

Copa Holdings Schedules Q3 2025 Financial Results Release

Copa Holdings announced its schedule for the release of its third-quarter 2025 financial results, which will occur on November 19, 2025, after the US market closes. The company will also host an earnings conference call and webcast on November 20, 2025, at 11:00 AM US ET. This announcement is part of Copa Holdings’ ongoing efforts to keep stakeholders informed about its financial performance and strategic positioning in the competitive airline industry.

Copa Holdings Reports Increased Passenger Traffic for August 2025

In August 2025, Copa Holdings reported a 5.8% increase in capacity and a 9.8% rise in passenger traffic compared to the previous year, resulting in a load factor of 88.3%, up by 3.2 percentage points from August 2024. These statistics indicate a strong operational performance for the company, enhancing its market position in the Latin American aviation sector.