Copa Holdings (CPA) AI Stock Analysis

• Market Cap: $5.01B
• Dividend Yield: 5.03%
• Average Volume (3M): 258.21K
• Price to Earnings (P/E): 7.9
• Beta (1Y): 0.65
• 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): 3.61
• Shares Outstanding: 30,234,830
• 10 Day Avg. Volume: 253,265
• 30 Day Avg. Volume: 258,214
• 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: 1.12
• Enterprise Value/Revenue: 1.61
• Enterprise Value/Gross Profit: 4.44
• Enterprise Value/Ebitda: 5.19
• 1Y Price Target: $150.33
• Price Target Upside: 17.38% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 81 Outperform
• Price Target: $136.00 ▲(6.19% Upside)

Copa Holdings' strong financial performance and attractive valuation are the primary drivers of its high score. The technical analysis supports a positive outlook, though caution is advised due to potential liquidity challenges and market-specific issues highlighted in the earnings call.

Positive Factors

Operational Efficiency

Copa's high operational efficiency, demonstrated by top-tier on-time performance and flight completion rates, strengthens its competitive position and customer satisfaction, supporting long-term business sustainability.

Financial Flexibility

Strong cash reserves and low debt levels provide Copa with significant financial flexibility, enabling strategic investments and resilience against economic fluctuations, ensuring long-term stability.

Fleet Expansion

Expanding the fleet with modern aircraft enhances Copa's operational capacity and efficiency, supporting growth and competitive positioning in the airline industry over the long term.

Negative Factors

Declining Passenger Yields

Decreasing passenger yields and unit revenues could pressure Copa's profitability, challenging its ability to maintain margins and necessitating strategic adjustments to sustain long-term growth.

Increased Costs Excluding Fuel

Rising costs, excluding fuel, may impact Copa's cost efficiency and profitability, requiring ongoing cost management and operational adjustments to maintain competitive advantage.

Market Challenges in Central America

Weakness in the Central America market, due to external factors like visa issues, could limit Copa's growth prospects in this region, necessitating strategic market diversification to mitigate risks.

Copa Holdings Business Overview & Revenue Model

Company Description

Copa Holdings, through its subsidiaries Copa Airlines and Copa Airlines Colombia, is a leading provider of passenger and cargo air transportation services in Latin America. Headquartered in Panama City, the company operates a hub-and-spoke network connecting more than 80 destinations in 33 countries across North, Central, and South America and the Caribbean. Copa Holdings offers a range of services including scheduled flights, cargo transportation, and travel-related services, with a focus on providing high-quality customer service and efficient operations.

How the Company Makes Money

Copa Holdings generates revenue primarily through the sale of passenger tickets and cargo services. The company's revenue model is based on a combination of passenger fare income, ancillary services, and cargo transportation fees. Key revenue streams include ticket sales from domestic and international flights, which account for the majority of the company's earnings, as well as additional revenue from baggage fees, in-flight services, and partnerships with travel agencies and corporate clients. Furthermore, Copa Airlines benefits from strategic alliances with other airlines, enhancing its connectivity and enabling code-sharing agreements that broaden its market reach and generate incremental revenue.

Copa Holdings Financial Statement Overview

Summary

Copa Holdings demonstrates solid financial health with strong profitability, stable financial leverage, and robust cash flow generation. The company has rebounded effectively from previous years' challenges, positioning itself well for future growth and stability.

Income Statement

Copa Holdings shows strong profitability with a consistent Gross Profit Margin of around 37% in TTM, indicating efficient cost management. The Net Profit Margin has improved significantly over the years, reaching about 17.7% in TTM, reflecting effective operational strategies. Revenue growth is stable, with minor fluctuations, and EBIT and EBITDA margins are healthy at 21.8% and 27.5% respectively, demonstrating robust operational performance.

Balance Sheet

The company maintains a solid financial position, evidenced by a debt-to-equity ratio of 0.78 in TTM, indicating prudent financial leverage. The Return on Equity is impressive at 24.5%, showcasing strong profitability relative to shareholder equity. The equity ratio stands at 43.2%, reflecting a strong equity base. Overall, the balance sheet is stable with a healthy mix of debt and equity financing.

Cash Flow

Copa Holdings exhibits strong cash flow management, with a significant Operating Cash Flow to Net Income Ratio of 1.6, suggesting excellent cash conversion efficiency. The Free Cash Flow to Net Income Ratio is also strong at 1.6, indicating effective use of capital. Free Cash Flow has grown substantially, reflecting improved cash generation capabilities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.48B	3.45B	3.46B	2.97B	1.51B	801.00M
Gross Profit	1.26B	1.23B	1.47B	800.27M	550.06M	-229.00M
EBITDA	1.08B	1.12B	1.08B	741.68M	370.51M	-298.40M
Net Income	637.88M	608.53M	514.10M	348.05M	43.84M	-607.06M
Balance Sheet
Total Assets	6.00B	5.74B	5.20B	4.69B	4.25B	3.85B
Cash, Cash Equivalents and Short-Term Investments	1.00B	1.20B	915.18M	934.75M	1.02B	889.88M
Total Debt	2.05B	2.00B	1.75B	1.68B	1.60B	1.39B
Total Liabilities	3.44B	3.37B	3.07B	3.20B	2.95B	2.57B
Stockholders Equity	2.56B	2.37B	2.12B	1.49B	1.30B	1.28B
Cash Flow
Free Cash Flow	-6.31M	340.51M	214.91M	90.26M	-32.71M	-100.00M
Operating Cash Flow	1.01B	996.85M	1.04B	740.95M	462.61M	-39.52M
Investing Cash Flow	-817.74M	-343.14M	-543.00M	-552.15M	-459.13M	-93.76M
Financing Cash Flow	-129.96M	-219.65M	-394.03M	-273.69M	88.54M	93.61M

Copa Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 128.07
• 50DMA: Positive
• 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 128.07 is above the 20-day moving average (MA) of 120.62, above the 50-day MA of 117.57, and above the 200-day MA of 100.76, indicating a bullish trend. The MACD of 2.16 indicates Negative momentum. The RSI at 68.33 is Neutral, neither overbought nor oversold. The STOCH value of 63.52 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	81 Outperform	$5.01B	7.88	26.60%	5.03%	-0.69%	-5.49%
SKYW	68 Neutral	$3.96B	10.29	16.95%	―	20.45%	131.25%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
ALK	62 Neutral	$5.44B	19.62	7.66%	―	27.81%	43.03%
ALGT	56 Neutral	$1.08B	―	-24.02%	1.25%	3.17%	-1689.03%
JBLU	45 Neutral	$1.60B	―	-15.12%	―	-1.90%	61.06%
ULCC	43 Neutral	$937.72M	13.43	-6.63%	―	4.60%	49.81%

Copa Holdings Corporate Events

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.

Copa Holdings Reports Increased Passenger Traffic for July 2025

In July 2025, Copa Holdings reported a 6.3% increase in capacity (ASMs) and a 7.8% rise in system-wide passenger traffic (RPMs) compared to July 2024. This growth led to a system load factor of 88.8%, which is 1.2 percentage points higher than the previous year, indicating improved operational efficiency and potentially strengthening its market position.

Copa Holdings Reports Strong Q2 2025 Financial Results

Copa Holdings reported strong financial results for the second quarter of 2025, with a net profit of $148.9 million, marking a 25.2% increase in earnings per share compared to the same period last year. The company maintained industry-leading net and operating margins, underscoring its robust business model despite a decrease in passenger yields. Copa’s strategic focus on low costs and high on-time performance, along with its expanding Hub of the Americas® in Panama, continues to bolster its competitive edge in the Latin American aviation market. The company also announced a dividend payment, reflecting confidence in its financial stability and growth prospects.