Copa Holdings S.A. Class A Common Stock (CPA)

FairStock Score: 74/100 — STEADY

Key Financials

Strengths

• High return on equity of 26.1% demonstrating efficient capital deployment
• Attractive 5.7% dividend yield providing steady income returns
• FairStock composite score of 74/100 places it in the top tier across value, quality, and momentum factors

Concerns

• Altman Z-Score of 1.7 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

Copa Holdings S.A. Class A Common Stock is a small-cap industrials company valued at $4.9 billion. The business generates $3.6 billion in annual revenue with a 4.8% net margin. From a quality standpoint, Copa shows distressed Altman Z-Score of 1.7 warrants caution and strong 26% ROE. On valuation, the stock is deeply undervalued on a P/E basis at 7.1x, with a modest 25% margin of safety vs Graham Number. Growth dynamics show revenue growing at 9.6% and profit growth of 4.1%. The 5.7% dividend yield adds an income component for patient holders. Our composite FairStock Score of 74/100 reflects above-average fundamentals overall. This combination of reasonable valuation, solid returns, and conservative leverage makes it worth a closer look for value-oriented portfolios.

Bull Case

The market underappreciates Copa's consistent 26% ROE at just 7x earnings—a re-rating toward sector peers could unlock 30-50% upside. Operational leverage in the business model means incremental revenue growth could disproportionately boost bottom-line profitability.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the industrials space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer