CPACopa Holdings, S.A.
Is the business good?
The checks split: nothing decisive, though earnings fully cash-backed (1.6×).
Operating profit is fully backed by cash.
Positive operating leverage, operating profit is growing faster than sales, so margins widen as the business scales.
Margin-driven, fat margins on slower asset turns. ROE 24% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is CPA?
Copa Holdings, S.A. earns 15% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 5.8 points above what the capital costs: growth creates value
- Operating margin
- 23%
Operating margin · Airlines median 7.6% · fiscal year to FY2025
- Cash conversion
- 1.62×
Cash conversion · 1.54× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- −1.3%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | −58% |
| FY2021 | 10% |
| FY2022 | 15% |
| FY2023 | 23% |
| FY2024 | 22% |
| FY2025 | 23% |
Details›
- Operating marginfiscal year to FY2025
- 23%
- Net marginfiscal year to FY2025
- 19%
- Revenue, trailing twelve months
- $3.62B
- Net income, trailing twelve months
- $672M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 15%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.