| Snowflake Score | |
|---|---|
| Valuation | 5/6 |
| Future Growth | 1/6 |
| Past Performance | 0/6 |
| Financial Health | 2/6 |
| Dividends | 0/6 |
CPS Stock Overview
Cooper-Standard Holdings Inc., through its subsidiary, Cooper-Standard Automotive Inc., designs, manufactures, and sells sealing, fuel and brake delivery, and fluid transfer systems.
Cooper-Standard Holdings Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$10.88 |
| 52 Week High | US$28.06 |
| 52 Week Low | US$3.53 |
| Beta | 2.84 |
| 1 Month Change | 141.78% |
| 3 Month Change | 129.54% |
| 1 Year Change | -52.94% |
| 3 Year Change | -66.64% |
| 5 Year Change | -89.10% |
| Change since IPO | -65.46% |
Recent News & Updates
A 'Sealing Systems' Stock Market (And Sentiment Results)...
The idea emanated from Charlie Munger’s purchase of Tenneco during 2001 -2003 recession. GM and Ford are key. Dealer lot inventories are still at 10-15% of where they need to be. Opinion, Not Investment Advice. See Terms Above. Disclosure: We own a meaningful amount of CPS stock. On June 7, 2022 we broke our Cooper-Standard (CPS) thesis publicly on Fox Business for the first time. We elaborated on the thesis – at a more granular level – on our VideoCast – Episode 138 on June 9, 2022. The stock is now up 83.41% since reporting earnings last Thursday: StockCharts Cooper-Standard ((CPS)) – Leveraged Play on Auto-Semi recovery and High Yield Credit Markets Re-Opening The idea emanated from Charlie Munger’s purchase of Tenneco during 2001 -2003 recession: BARRONS StockCharts “Tenneco was a major supplier of aftermarket auto parts. Its well-known brands include Monroe shock absorbers, Walker mufflers, and DynoMax exhaust products. At the time of Charlie Munger’s “cigar butt” investment, Tenneco — which had ~40m shares outstanding — had a market cap of ~$80m and enterprise value of ~$1.6 billion, as well as a total debt load of ~$1.52b. He bought the stock (which was trading at ~$1.50-$2/share), as well as the bonds (11.375% notes yielding 35% to maturity). Within a few years, the stock went up to $15, at which point he sold. The bonds went back up to par value and were called in by the company in conjunction with a refinancing.” (macro-ops) StockCharts Friday, CPS was up 69.58% on Q2 Earnings Report and Guidance (up ~14% more since). We said this: Twitter Overview: 10-K 10-K 10-K 10-K The Auto Industry is finally moving past the worst of a costly semiconductor shortage that has reportedly cut 13 million vehicles from global production since the start of 2021 (AutoForecast Solutions (AFS)). Over-ordering of chips (for consumer products) is finally catching up with reduced demand (electronics/PCs). Excess capacity is being re-allocated to auto/industrial chips. CPS is a Special Situation auto supplier. Its existence depends on the number of cars the OEMs produce – with its two largest clients being Ford and GM. We have received very good news on this front in a mosaic of recent earnings reports – indicating the tide has shifted as it relates to auto chip supply (improving). This was a core tenet in our investment thesis – which is now starting to manifest. Taiwan Semiconductor: Auto Chip business up 14% yoy in Q2 NXPI Semiconductor: Auto Chip business up 36% yoy in Q2 Texas Instruments: Beat and Raised on strength in Industrial and Auto Chips. Auto chips rose 20% yoy. Qualcomm: Automotive chips grew 38% on an annual basis – an all-time-high for Qualcomm. GM: Maintained full year guidance and production despite a setback in early Q2 due to China lockdowns. Ford: Maintained full year guidance and production despite a setback in early Q2 due to China lockdowns. In a research report recently published, RBC analyst Joseph Spak wrote that some auto suppliers he follows have seen supply chain situations improve. What’s more, forecasting firm IHS kept its prediction of about 80 million global car sales for the full year 2022 earlier this month, despite volume slipping out of the second quarter because of problems in China. GM and FORD are key: They can only book revenue when they send the car to dealers. They can only send the car to dealers when they have the auto chips. The color is now that the tide has changed in the latter part of Q2 and the chips are flowing again. This is critical for auto-suppliers as they get paid when OEMs are shipping cars, and OEMs can only ship cars if they have chips. The machine is now unclogging and two years of unfulfilled backlog can now start to be filled. The operating leverage will be enormous. Dealer lot inventories are still at 10-15% of where they need to be. This is not for lack of DEMAND. It is due to lack of supply of chips. This is finally changing. Yesterday’s shortage will be tomorrow’s glut! FRED S&P DATA 10-K STATISTA -Adam Jonas of Morgan Stanley came out with a note this month which indicates that the long-lasting global auto chip shortage is edging closer to resolution. CEO Jeff Edwards 8/5/2022: “We began to see some improvement in global market conditions and production levels in the final four weeks of the quarter,” said Jeffrey Edwards, chairman and CEO, Cooper-Standard. “With China production coming back on line, European markets and operations beginning to stabilize from Ukraine war-related disruptions, and increasing inflation recoveries from our customers, we saw adjusted EBITDA margins and cash flow turn positive in June. With further improvements in global production volume expected in the remainder of the year, combined with continuing cost reduction initiatives and anticipated incremental positive impact from our enhanced commercial agreements, we continue to expect to deliver full year adjusted EBITDA in line with our original guidance.”
Cooper-Standard Q2 results beat estimates, co reiterates FY 2022 adj. EBITDA guidance
Cooper-Standard press release (NYSE:CPS): Q2 Non-GAAP EPS of -$3.40 beats by $0.08. Revenue of $605.9M (+13.6% Y/Y) beats by $29.85M. Sees FY 2022 sales of $2.5B to $2.7B vs. previous forecast of $2.6B to $2.8B. The consensus revenue estimate is $2.53B. Reiterating 2022 full year guidance for adjusted EBITDA
Shareholder Returns
| CPS | US Auto Components | US Market | |
|---|---|---|---|
| 7D | 12.0% | 9.0% | 4.5% |
| 1Y | -52.9% | -20.5% | -8.9% |
Return vs Industry: CPS underperformed the US Auto Components industry which returned -23% over the past year.
Return vs Market: CPS underperformed the US Market which returned -9.6% over the past year.
Price Volatility
| CPS volatility | |
|---|---|
| CPS Average Weekly Movement | 25.0% |
| Auto Components Industry Average Movement | 8.0% |
| Market Average Movement | 7.6% |
| 10% most volatile stocks in US Market | 16.8% |
| 10% least volatile stocks in US Market | 3.1% |
Stable Share Price: CPS is more volatile than 90% of US stocks over the past 3 months, typically moving +/- 25% a week.
Volatility Over Time: CPS's weekly volatility has increased from 16% to 25% over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1960 | 20,000 | Jeff Edwards | https://www.cooperstandard.com |
Cooper-Standard Holdings Inc., through its subsidiary, Cooper-Standard Automotive Inc., designs, manufactures, and sells sealing, fuel and brake delivery, and fluid transfer systems. The company’s sealing systems include obstacle detection sensor systems, dynamic seals, variable extrusion systems, static seals, specialty sealing products, encapsulated glasses, stainless steel trims, FlushSeal systems, and textured surfaces with cloth appearance. Its fuel and brake delivery systems comprise chassis and tank fuel lines and bundles, direct injection and port fuel rails, metallic brake lines and bundles, tube coatings, quick connects, low oligomer multi-layer convoluted tubes, and brake jounce lines.
Cooper-Standard Holdings Fundamentals Summary
| CPS fundamental statistics | |
|---|---|
| Market Cap | US$186.12m |
| Earnings (TTM) | -US$319.97m |
| Revenue (TTM) | US$2.35b |
0.1x
P/S Ratio-0.6x
P/E RatioIs CPS overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| CPS income statement (TTM) | |
|---|---|
| Revenue | US$2.35b |
| Cost of Revenue | US$2.29b |
| Gross Profit | US$56.79m |
| Other Expenses | US$376.75m |
| Earnings | -US$319.97m |
Last Reported Earnings
Jun 30, 2022
Next Earnings Date
n/a
| Earnings per share (EPS) | -18.70 |
| Gross Margin | 2.42% |
| Net Profit Margin | -13.63% |
| Debt/Equity Ratio | 453.9% |
How did CPS perform over the long term?
See historical performance and comparisonValuation
Is CPS undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
5/6Valuation Score 5/6
Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast
Key Valuation Metric
Which metric is best to use when looking at relative valuation for CPS?
Other financial metrics that can be useful for relative valuation.
| What is CPS's n/a Ratio? | |
|---|---|
| n/a Ratio | 0x |
| n/a | n/a |
| Market Cap | US$186.12m |
| Key Statistics | |
|---|---|
| Enterprise Value/Revenue | 0.5x |
| Enterprise Value/EBITDA | -27.8x |
| PEG Ratio | n/a |
Price to Sales Ratio vs Peers
How does CPS's PS Ratio compare to its peers?
| CPS PS Ratio vs Peers |
|---|
| Company | PS | Estimated Growth | Market Cap |
|---|---|---|---|
| Peer Average | 3.2x | ||
KNDI Kandi Technologies Group | 2x | 29.8% | US$187.2m |
XL XL Fleet | 10.3x | 55.1% | US$196.6m |
SUP Superior Industries International | 0.1x | 11.7% | US$155.1m |
STRT Strattec Security | 0.3x | 8.4% | US$130.9m |
CPS Cooper-Standard Holdings | 0.08x | 11.7% | US$186.1m |
Price-To-Sales vs Peers: CPS is good value based on its Price-To-Sales Ratio (0.1x) compared to the peer average (3.2x).
Price to Earnings Ratio vs Industry
How does CPS's PE Ratio compare vs other companies in the US Auto Components Industry?
Price-To-Sales vs Industry: CPS is good value based on its Price-To-Sales Ratio (0.1x) compared to the US Auto Components industry average (0.6x)
Price to Sales Ratio vs Fair Ratio
What is CPS's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
| Fair Ratio | |
|---|---|
| Current PS Ratio | 0.08x |
| Fair PS Ratio | 0.4x |
Price-To-Sales vs Fair Ratio: CPS is good value based on its Price-To-Sales Ratio (0.1x) compared to the estimated Fair Price-To-Sales Ratio (0.4x).
Share Price vs Fair Value
What is the Fair Price of CPS when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: CPS ($10.88) is trading below our estimate of fair value ($70.43)
Significantly Below Fair Value: CPS is trading below fair value by more than 20%.
Analyst Price Targets
What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?
Analyst Forecast: Insufficient data to show price forecast.
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Future Growth
How is Cooper-Standard Holdings forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?
Future Growth Score
1/6Future Growth Score 1/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE
126.6%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CPS is forecast to remain unprofitable over the next 3 years.
Earnings vs Market: CPS is forecast to remain unprofitable over the next 3 years.
High Growth Earnings: CPS is forecast to remain unprofitable over the next 3 years.
Revenue vs Market: CPS's revenue (11.7% per year) is forecast to grow faster than the US market (7.9% per year).
High Growth Revenue: CPS's revenue (11.7% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: Insufficient data to determine if CPS's Return on Equity is forecast to be high in 3 years time
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Past Performance
How has Cooper-Standard Holdings performed over the past 5 years?
Past Performance Score
0/6Past Performance Score 0/6
Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE
-64.2%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: CPS is currently unprofitable.
Growing Profit Margin: CPS is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: CPS is unprofitable, and losses have increased over the past 5 years at a rate of 64.2% per year.
Accelerating Growth: Unable to compare CPS's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: CPS is unprofitable, making it difficult to compare its past year earnings growth to the Auto Components industry (-6.3%).
Return on Equity
High ROE: CPS has a negative Return on Equity (-146.83%), as it is currently unprofitable.
Discover strong past performing companies
Financial Health
How is Cooper-Standard Holdings's financial position?
Financial Health Score
2/6Financial Health Score 2/6
Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Stable Cash Runway
Forecast Cash Runway
Financial Position Analysis
Short Term Liabilities: CPS's short term assets ($999.1M) exceed its short term liabilities ($645.6M).
Long Term Liabilities: CPS's short term assets ($999.1M) do not cover its long term liabilities ($1.3B).
Debt to Equity History and Analysis
Debt Level: CPS's net debt to equity ratio (340.9%) is considered high.
Reducing Debt: CPS's debt to equity ratio has increased from 92.2% to 453.9% over the past 5 years.
Balance Sheet
Cash Runway Analysis
For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.
Stable Cash Runway: CPS has sufficient cash runway for more than a year based on its current free cash flow.
Forecast Cash Runway: Insufficient data to determine if CPS has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.
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Dividend
What is Cooper-Standard Holdings's current dividend yield, its reliability and sustainability?
Dividend Score
0/6Dividend Score 0/6
Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage
Dividend Yield vs Market
Notable Dividend: Unable to evaluate CPS's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate CPS's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if CPS's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if CPS's dividend payments have been increasing.
Earnings Payout to Shareholders
Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: Unable to calculate sustainability of dividends as CPS has not reported any payouts.
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Management
How experienced are the management team and are they aligned to shareholders interests?
3.6yrs
Average management tenure
CEO
Jeff Edwards (60 yo)
9.83yrs
Tenure
US$5,087,944
Compensation
Mr. Jeffrey S. Edwards, also known as Jeff, serves as the Chief Executive Officer of Cooper-Standard Holdings Inc. since October 15, 2012 and serves as the Chairman since May 10, 2013. Mr. Edwards also ser...
CEO Compensation Analysis
Compensation vs Market: Jeff's total compensation ($USD5.09M) is above average for companies of similar size in the US market ($USD1.67M).
Compensation vs Earnings: Jeff's compensation has increased whilst the company is unprofitable.
Leadership Team
Experienced Management: CPS's management team is considered experienced (3.6 years average tenure).
Board Members
Experienced Board: CPS's board of directors are considered experienced (7.3 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Cooper-Standard Holdings Inc.'s employee growth, exchange listings and data sources
Key Information
- Name: Cooper-Standard Holdings Inc.
- Ticker: CPS
- Exchange: NYSE
- Founded: 1960
- Industry: Auto Parts and Equipment
- Sector: Automobiles
- Implied Market Cap: US$186.115m
- Shares outstanding: 17.11m
- Website: https://www.cooperstandard.com
Number of Employees
Location
- Cooper-Standard Holdings Inc.
- 40300 Traditions Drive
- Northville
- Michigan
- 48168
- United States
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/08/16 00:00 |
| End of Day Share Price | 2022/08/16 00:00 |
| Earnings | 2022/06/30 |
| Annual Earnings | 2021/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.