Copa Holdings (CPA) AI Stock Analysis

• Market Cap: $4.78B
• Dividend Yield: 5.37%
• Average Volume (3M): 281.81K
• Price to Earnings (P/E): 7.2
• Beta (1Y): 0.58
• Revenue Growth: 1.36%
• EPS Growth: 6.84%
• 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: 239,236
• 30 Day Avg. Volume: 281,810
• 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: 1.27
• Enterprise Value/Revenue: 1.72
• Enterprise Value/Gross Profit: 5.29
• Enterprise Value/Ebitda: 4.98
• 1Y Price Target: $157.00
• Price Target Upside: 30.87% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): 16.38
• Revenue Forecast (FY): $3.63B

• Rating: 77 Outperform
• Price Target: $136.00 ▲(13.36% Upside)

Copa Holdings demonstrates strong financial performance and attractive valuation, leading to a favorable stock score. The company's robust profitability and efficient operations are significant strengths. While technical indicators suggest mixed momentum, the low P/E ratio and high dividend yield enhance the stock's appeal. The earnings call further supports a positive outlook, despite some yield pressures.

Positive Factors

Fleet Expansion

Expanding the fleet with modern aircraft enhances operational efficiency and capacity, supporting long-term growth and competitive positioning.

Operational Efficiency

High operational efficiency with strong on-time performance and flight completion rates strengthens customer satisfaction and market competitiveness.

Financial Strength

A strong cash position enhances liquidity, providing financial flexibility to invest in growth opportunities and withstand economic fluctuations.

Negative Factors

Passenger Yield Decline

Declining passenger yields can pressure revenue and profitability, especially in competitive markets, affecting long-term financial performance.

Yield Pressure

Sustained yield pressure due to competition may limit revenue growth, necessitating strategic adjustments to maintain profitability.

Negative Free Cash Flow to Net Income Ratio

Challenges in converting net income to free cash flow may impact liquidity and limit the ability to fund operations and growth initiatives.

Copa Holdings Business Overview & Revenue Model

Company Description

Copa Holdings, S.A., through its subsidiaries, provides airline passenger and cargo services. The company offers approximately 204 daily scheduled flights to 69 destinations in 29 countries in North, Central, and South America, as well as the Caribbean from its Panama City hub. As of December 31, 2021, it operated a fleet of 91 aircraft comprising 77 Boeing 737-Next Generation aircraft and 14 Boeing 737 MAX 9 aircraft. Copa Holdings, S.A. was founded in 1947 and is based in Panama City, Panama.

How the Company Makes Money

Copa Holdings generates revenue primarily through passenger ticket sales, which account for the largest share of its income. The company offers various fare classes and ancillary services, such as baggage fees, seat selection, and in-flight purchases, contributing to its overall revenue. Additionally, Copa Airlines earns money from cargo services, transporting goods between destinations. The airline's strategic partnerships, including membership in the Star Alliance network, enable it to expand its reach and increase passenger traffic through code-sharing agreements. Factors such as fuel prices, economic conditions in Latin America, and travel demand significantly influence Copa's financial performance.

Copa Holdings Financial Statement Overview

Summary

Copa Holdings demonstrates strong financial health with robust revenue growth and profitability. The balance sheet is stable with manageable debt levels, and cash flow generation is improving despite some conversion challenges. The company is well-positioned in the airlines industry, showing resilience and operational efficiency.

Income Statement

Copa Holdings has demonstrated strong revenue growth with a TTM increase of 1.68% and consistent profitability. The gross profit margin stands at 36.21% and the net profit margin at 18.36%, indicating efficient cost management and robust earnings. EBIT and EBITDA margins are also healthy at 23.72% and 33.51% respectively, reflecting operational efficiency.

Balance Sheet

The company's balance sheet shows a stable financial position with a debt-to-equity ratio of 0.80, indicating manageable leverage. Return on equity is strong at 26.22%, showcasing effective use of equity capital. The equity ratio is 42.49%, suggesting a solid equity base relative to assets.

Cash Flow

Copa Holdings has shown significant improvement in free cash flow, with a growth rate of 4226.28% in the TTM period. However, the free cash flow to net income ratio is slightly negative at -0.62%, indicating challenges in converting income into free cash flow. The operating cash flow to net income ratio is 0.73, reflecting decent cash generation from operations.

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	1.15B	1.10B	1.16B	800.27M	363.82M	-75.46M
EBITDA	1.22B	1.12B	1.08B	741.68M	370.51M	-298.40M
Net Income	665.21M	608.11M	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: Positive
• Last Price: 119.97
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CPA, the sentiment is Positive. The current price of 119.97 is above the 20-day moving average (MA) of 118.91, below the 50-day MA of 121.53, and above the 200-day MA of 106.82, indicating a neutral trend. The MACD of -0.88 indicates Negative momentum. The RSI at 50.76 is Neutral, neither overbought nor oversold. The STOCH value of 39.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CPA.

Copa Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CPA	77 Outperform	$4.78B	7.18	26.69%	5.37%	1.36%	6.84%
SKYW	70 Outperform	$4.31B	10.11	17.42%	―	19.27%	78.26%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
ALGT	58 Neutral	$1.51B	―	-25.37%	―	3.29%	-983.31%
ALK	54 Neutral	$6.00B	42.17	3.53%	―	31.50%	-49.15%
JBLU	51 Neutral	$1.83B	―	-19.09%	―	-2.49%	47.88%
ULCC	50 Neutral	$1.33B	―	-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.