CPA - Copa Holdings Is Bafflingly Undervalued
2024-03-13 12:26:36 ET
Summary
- Copa Holdings is a Panama-based airline with strong financials, industry-leading margins, and TBV approaching 50% of its market cap.
- Following steep COVID losses in 2020, Copa quickly returned to rapid and profitable growth, with revenue nearly doubling in both 2021 and 2022.
- Management is forecasting low-double-digit growth in 2024. The Panamanian tourism industry now surpasses pre-pandemic levels and continues to grow.
- The stock's single-digit P/E and P/FCF multiples suggest that it is dramatically undervalued.
- Following its recent dividend increase, Copa now yields 6.4%. The company also recently authorized a new $200M buyback program after fully exercising the prior authorization.
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Copa Holdings Is Bafflingly Undervalued