company background image
CPS

Cooper-Standard Holdings NYSE:CPS Stock Report

Last Price

US$10.88

Market Cap

US$186.1m

7D

12.0%

1Y

-52.9%

Updated

16 Aug, 2022

Data

Company Financials +
CPS fundamental analysis
Snowflake Score
Valuation5/6
Future Growth1/6
Past Performance0/6
Financial Health2/6
Dividends0/6

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

Summary of all time highs, changes and price drops for Cooper-Standard Holdings
Historical stock prices
Current Share PriceUS$10.88
52 Week HighUS$28.06
52 Week LowUS$3.53
Beta2.84
1 Month Change141.78%
3 Month Change129.54%
1 Year Change-52.94%
3 Year Change-66.64%
5 Year Change-89.10%
Change since IPO-65.46%

Recent News & Updates

Aug 15

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.”

Aug 04

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

CPSUS Auto ComponentsUS Market
7D12.0%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

Is CPS's price volatile compared to industry and market?
CPS volatility
CPS Average Weekly Movement25.0%
Auto Components Industry Average Movement8.0%
Market Average Movement7.6%
10% most volatile stocks in US Market16.8%
10% least volatile stocks in US Market3.1%

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

FoundedEmployeesCEOWebsite
196020,000Jeff Edwardshttps://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

How do Cooper-Standard Holdings's earnings and revenue compare to its market cap?
CPS fundamental statistics
Market CapUS$186.12m
Earnings (TTM)-US$319.97m
Revenue (TTM)US$2.35b

0.1x

P/S Ratio

-0.6x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CPS income statement (TTM)
RevenueUS$2.35b
Cost of RevenueUS$2.29b
Gross ProfitUS$56.79m
Other ExpensesUS$376.75m
Earnings-US$319.97m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-18.70
Gross Margin2.42%
Net Profit Margin-13.63%
Debt/Equity Ratio453.9%

How did CPS perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is CPS undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation 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.

CPS key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.5x
Enterprise Value/EBITDA-27.8x
PEG Ration/a

Price to Sales Ratio vs Peers

How does CPS's PS Ratio compare to its peers?

CPS PS Ratio vs Peers
The above table shows the PS ratio for CPS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average3.2x
KNDI Kandi Technologies Group
2x29.8%US$187.2m
XL XL Fleet
10.3x55.1%US$196.6m
SUP Superior Industries International
0.1x11.7%US$155.1m
STRT Strattec Security
0.3x8.4%US$130.9m
CPS Cooper-Standard Holdings
0.08x11.7%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.

CPS PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.08x
Fair PS Ratio0.4x

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.


Discover undervalued companies

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

1/6

Future 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


Discover growth companies

Past Performance

How has Cooper-Standard Holdings performed over the past 5 years?

Past Performance Score

0/6

Past 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

2/6

Financial 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.


Discover healthy companies

Dividend

What is Cooper-Standard Holdings's current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend 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.


Discover strong dividend paying companies

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/16 00:00
End of Day Share Price2022/08/16 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.