CPAI Counterpoint Quantitative Equity ETF

Counterpoint Quantitative Equity ETF (CPAI) currently reports 51 stock positions (subject to change), placing it in the neither concentrated nor index-like range by holdings breadth. The top line-up is MU (3.85%), ALAB (3.77%), CRDO (3.32%), with MU as the largest single weight at 3.85%. Together, the top three holdings account for 10.94%, which indicates that idiosyncratic risk at the top of the book is relatively contained within the overall portfolio. The resulting profile combines thematic conviction with varying degrees of diversification, which can support upside participation while still spreading idiosyncratic risk beyond the top weights.

From a returns-on-capital standpoint, ROIC is 12.66%, WACC is 9.09%, and the economic spread is 3.56%. On balance, the portfolio clears its capital cost hurdle modestly — value creation is present but not emphatic. Supporting metrics show ROE at 8.55% and ROA at 6.44%, a combination that helps frame whether profitability strength is broad enough to hold through different market conditions. Taken together, the return profile suggests a portfolio that is value-creative but with less room for execution slippage.

The current pricing of the underlying holdings reads trailing P/E of 20.20, forward P/E of 13.57, PEG of 1.38. The trailing-to-forward compression is moderate — supportive of valuation, but not a dramatic signal of earnings acceleration. The PEG ratio is low enough to suggest the valuation is supported by earnings growth expectations rather than multiple expansion alone. The aggregate current ratio of 2.64 points to strong liquidity across holdings. In aggregate, the valuation reads as fair to moderately stretched — leaving the investment case dependent on earnings execution rather than multiple expansion.

On profitability at each income statement layer, gross margin sits at 50.11%, operating margin at 13.60%, and free cash flow margin at 16.76%. The portfolio's gross margins are solid, reflecting a reasonable balance between revenue realization and direct cost absorption. The operating margin reading is modest, consistent with businesses still working to scale their cost structures efficiently. Free cash flow margins are strong, reflecting capital-efficient businesses that largely self-fund their growth. Taken together, the margin stack suggests quality that is uneven — some layers are more resilient than others, and that asymmetry matters under stress.

Looking at what the businesses are actually delivering versus what analysts are pricing in, TTM revenue growth of 49.51% indicating that revenue growth remains a meaningful tailwind for the portfolio. At the same time, the estimated 12-month price change of 23.12%, where implied upside appears constructive but not aggressive. Revenue growth captures operating momentum, while price targets reflect external expectations that can move with rates, risk appetite, and sector sentiment. Whether current momentum translates into delivered returns will depend on the durability of both top-line trends and the assumptions embedded in analyst targets. The estimated 12-month price change is a weighted composite of analyst price target estimates adjusted by each holding's ETF weight, sourced from publicly available data, and should not be interpreted as a reliable prediction of future performance.

The composite of ROIC spread, valuation, revenue momentum, and analyst expectations delivers a rare alignment of quality and growth that justifies elevated conviction.

These findings are based solely on the metrics presented and do not constitute an investment recommendation. Always perform your own due diligence before committing capital.