Copa Corporation Inc. (7689) AI Stock Analysis

• Market Cap: ¥1.40B
• Dividend Yield: N/A
• Average Volume (3M): 2.69K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.80
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: JP
• Employees: 43
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): -25.77
• Shares Outstanding: 2,963,000
• 10 Day Avg. Volume: 4,830
• 30 Day Avg. Volume: 2,690
• PEG Ratio: 0.06
• Price to Book (P/B): 1.54
• Price to Sales (P/S): 0.78
• P/FCF Ratio: -7.65
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 48 Neutral
• Price Target: ¥446.00 ▼(-8.79% Downside)
• Action: Reiterated Date: 02/05/26
• Date: Action: Reiterated 02/05/26

The score is held down primarily by continued losses and negative free cash flow, alongside declining equity. Technicals provide some support due to positive momentum, but overbought indicators raise near-term risk, and valuation remains challenged given the negative P/E.

Positive Factors

Conservative balance sheet

Zero reported debt materially reduces financial risk and preserves strategic flexibility over months. This gives management more runway to address profitability and cash issues without immediate refinancing pressure, supporting survivability while operating performance recovers.

Revenue rebound in 2025

A large YoY revenue rebound indicates improving demand or recovery from a depressed period. If sustained, rising top-line can leverage fixed costs, enable margin recovery and reduce need for external funding over the coming quarters, improving long-term operational viability.

Improving cash burn trend

Improvement in cash burn shows management is stabilizing operations and narrowing cash outflows. Sustained reduction in burn increases runway and the odds of returning to positive cash generation within several quarters, reducing dependency on financings if the trend continues.

Negative Factors

Persistent operating losses

Continued negative operating results and a deeply negative net margin indicate the core business is not yet profitable. Persistent losses erode ability to reinvest, depress returns, and make durable recovery dependent on structural revenue growth or material cost transformation.

Negative free cash flow

Negative operating and free cash flow in consecutive years means the company is not self-funding. That heightens reliance on existing liquidity or external capital, increasing execution risk and constraining strategic investment until sustainable positive cash generation is restored.

Meaningful equity erosion

Substantial decline in equity and deeply negative ROE reduce the capital buffer available to absorb losses. This weakens long-term solvency margins, limits future financing flexibility despite low debt, and raises the bar for durable operational improvements to restore balance sheet health.

Copa Corporation Inc. Business Overview & Revenue Model

Company Description

Copa Corporation Inc. engages in the product demonstration sale and wholesale business in Japan. It is also involved in product planning and development business; TV shopping appearances and product wholesale business; production of promotional videos; and mail-order sales through internet, as well as sales consulting activities. The company was incorporated in 1998 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Copa Corporation Inc. Financial Statement Overview

Summary

Overall fundamentals are weak: profitability remains negative despite a revenue rebound, and cash flow is negative in 2024–2025. The main offsetting strength is a conservative balance sheet with zero debt, though equity has eroded meaningfully.

Income Statement

Profitability has deteriorated materially after a previously profitable period. Revenue has been volatile and is well below prior peaks (down sharply from 2020–2021 levels), with 2025 showing a rebound (+214% year over year) off a depressed base. Despite some improvement versus 2024, the company remains loss-making in 2025 with negative operating results and a net loss (about -21% net margin), indicating the core earnings profile is still under pressure.

Balance Sheet

Leverage appears conservative, with total debt at zero in 2024 and 2025, which reduces financial risk. However, equity has declined meaningfully (from ~2.76B in 2023 to ~1.04B in 2025) and returns on equity are deeply negative in the last two years, reflecting ongoing losses and balance sheet erosion despite low debt.

Cash Flow

Cash generation has been inconsistent and recently weak. Operating cash flow and free cash flow are negative in 2024 and 2025 (with 2025 free cash flow also negative), following positive cash flow in 2023. While the cash burn improved versus 2024, the business is not currently self-funding, increasing reliance on existing liquidity and/or future profitability improvements to stabilize cash flows.

Breakdown	TTM	Mar 2025	Feb 2024	Feb 2023	Feb 2022	Mar 2021
Income Statement
Total Revenue	1.96B	2.05B	2.21B	2.57B	3.87B	6.75B
Gross Profit	781.63M	889.49M	817.03M	950.92M	1.29B	2.27B
EBITDA	-452.36M	-386.64M	-1.25B	-101.28M	150.50M	943.84M
Net Income	-485.93M	-437.77M	-1.28B	-133.34M	89.86M	575.94M
Balance Sheet
Total Assets	1.26B	1.27B	1.65B	3.36B	3.31B	3.43B
Cash, Cash Equivalents and Short-Term Investments	467.26M	658.73M	883.31M	1.65B	1.09B	1.62B
Total Debt	0.00	0.00	0.00	250.00M	157.53M	390.00K
Total Liabilities	317.60M	232.67M	169.16M	605.16M	414.99M	629.36M
Stockholders Equity	945.70M	1.04B	1.48B	2.76B	2.89B	2.80B
Cash Flow
Free Cash Flow	0.00	-209.14M	-514.91M	458.54M	-680.49M	30.23M
Operating Cash Flow	0.00	-209.14M	-398.40M	536.49M	-672.05M	48.19M
Investing Cash Flow	0.00	-15.37M	-114.79M	-76.42M	-8.44M	-20.21M
Financing Cash Flow	0.00	-71.00K	-250.17M	92.34M	157.01M	645.59M

Copa Corporation Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7067	69 Neutral	¥1.62B	47.81	―	1.00%	5.79%	-30.56%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
9244	60 Neutral	¥1.46B	9.23	―	―	4.93%	―
9241	58 Neutral	¥1.36B	23.71	―	―	1.95%	1083.13%
4760	56 Neutral	¥1.29B	11.52	―	3.86%	3.93%	-4.20%
2156	55 Neutral	¥1.31B	47.70	―	1.98%	5.87%	―
7689	48 Neutral	¥1.40B	-3.55	―	―	―	―