NYSE:CPS

Stock Analysis Report

Cooper-Standard Holdings

Executive Summary

Cooper-Standard Holdings Inc., through its subsidiary, Cooper-Standard Automotive Inc., designs, manufactures, and sells sealing, fuel and brake delivery, fluid transfer, and anti-vibration systems worldwide.

Rewards

PE ratio (4.9x) is below the US market (18.9x)

Risk Analysis

Earnings are forecast to decline by an average of -26.3% per year for the next 3 years

Interest payments are not well covered by earnings

Highly volatile share price over past 3 months

Large one-off items impacting financial results



Snowflake Analysis

Fair value with mediocre balance sheet.


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Share Price & News

How has Cooper-Standard Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CPS's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-10.5%

CPS

-4.5%

US Auto Components

-2.7%

US Market


1 Year Return

-62.6%

CPS

-4.4%

US Auto Components

21.2%

US Market

Return vs Industry: CPS underperformed the US Auto Components industry which returned 1.9% over the past year.

Return vs Market: CPS underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

CPSIndustryMarket
7 Day-10.5%-4.5%-2.7%
30 Day-14.5%-7.2%0.09%
90 Day-17.0%-3.3%6.9%
1 Year-62.6%-62.6%-2.9%-4.4%23.8%21.2%
3 Year-73.7%-73.7%-4.0%-13.7%48.1%38.6%
5 Year-48.8%-48.8%11.1%-4.7%72.5%53.4%

Price Volatility Vs. Market

How volatile is Cooper-Standard Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Cooper-Standard Holdings undervalued compared to its fair value and its price relative to the market?

4.59x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CPS ($29.4) is trading above our estimate of fair value ($8.28)

Significantly Below Fair Value: CPS is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: CPS is good value based on its PE Ratio (4.9x) compared to the Auto Components industry average (18.2x).

PE vs Market: CPS is good value based on its PE Ratio (4.9x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: CPS's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: CPS is good value based on its PB Ratio (0.6x) compared to the US Auto Components industry average (1.3x).


Next Steps

Future Growth

How is Cooper-Standard Holdings forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

-26.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CPS's earnings are forecast to decline over the next 3 years (-26.3% per year).

Earnings vs Market: CPS's earnings are forecast to decline over the next 3 years (-26.3% per year).

High Growth Earnings: CPS's earnings are forecast to decline over the next 3 years.

Revenue vs Market: CPS's revenue is expected to decline over the next 3 years (-0.5% per year).

High Growth Revenue: CPS's revenue is forecast to decline over the next 3 years (-0.5% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CPS's Return on Equity is forecast to be low in 3 years time (7.1%).


Next Steps

Past Performance

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

13.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CPS has a large one-off gain of $53.6M impacting its September 30 2019 financial results.

Growing Profit Margin: CPS's current net profit margins (3.2%) are lower than last year (4.3%).


Past Earnings Growth Analysis

Earnings Trend: CPS's earnings have grown by 13% per year over the past 5 years.

Accelerating Growth: CPS's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: CPS had negative earnings growth (-34.1%) over the past year, making it difficult to compare to the Auto Components industry average (4.1%).


Return on Equity

High ROE: CPS's Return on Equity (10.5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Cooper-Standard Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: CPS's short term assets ($1.2B) exceed its short term liabilities ($696.9M).

Long Term Liabilities: CPS's short term assets ($1.2B) exceed its long term liabilities ($1.0B).


Debt to Equity History and Analysis

Debt Level: CPS's debt to equity ratio (85.2%) is considered high.

Reducing Debt: CPS's debt to equity ratio has reduced from 118.9% to 85.2% over the past 5 years.

Debt Coverage: CPS's debt is not well covered by operating cash flow (12.9%).

Interest Coverage: CPS's interest payments on its debt are not well covered by EBIT (1.7x coverage).


Balance Sheet

Inventory Level: CPS has a high level of physical assets or inventory.

Debt Coverage by Assets: CPS's debt is covered by short term assets (assets are 1.6x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.9%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate CPS's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate CPS's dividend yield against the top 25% of dividend payers, as the company has not reported any 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.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CPS's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Cooper-Standard Holdings's salary, the management and board of directors tenure and is there insider trading?

2.6yrs

Average management tenure


CEO

Jeff Edwards (57yo)

7.3yrs

Tenure

US$4,170,207

Compensation

Mr. Jeffrey S. Edwards, also known as Jeff, has been the Chief Executive Officer of Cooper-Standard Holdings Inc. since October 15, 2012 and has been Chairman since May 10, 2013. Mr. Edwards has been the C ...


CEO Compensation Analysis

Compensation vs Market: Jeff's total compensation ($USD4.17M) is above average for companies of similar size in the US market ($USD1.70M).

Compensation vs Earnings: Jeff's compensation has been consistent with company performance over the past year.


Management Age and Tenure

2.6yrs

Average Tenure

52.5yo

Average Age

Experienced Management: CPS's management team is considered experienced (2.6 years average tenure).


Board Age and Tenure

4.7yrs

Average Tenure

58yo

Average Age

Experienced Board: CPS's board of directors are considered experienced (4.7 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$99,81022 Aug 19
Song Lee
EntityIndividual
Shares3,000
Max PriceUS$33.27
BuyUS$18,94512 Aug 19
Jonathan Banas
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares500
Max PriceUS$37.89
BuyUS$207,48018 Jun 19
D. Pumphrey
EntityIndividual
Shares5,320
Max PriceUS$39.00
BuyUS$69,07304 Jun 19
Jeffrey DeBest
EntityIndividual
Role
Senior Key Executive
Executive VP & President of Advanced Technology Group
Shares1,750
Max PriceUS$39.47
SellUS$31,57206 May 19
Sharon Wenzl
EntityIndividual
Shares600
Max PriceUS$52.62
BuyUS$59,99001 Mar 19
Jonathan Banas
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares1,000
Max PriceUS$59.99

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Sue Kampe (58yo)

    Senior VP

    • Tenure: 4.1yrs
  • Jeff Edwards (57yo)

    Chairman & CEO

    • Tenure: 7.3yrs
    • Compensation: US$4.17m
  • Patrick Clark (46yo)

    Senior VP and Chief Global Engineering & Product Strategy Officer

    • Tenure: 1yrs
  • Roger Hendriksen

    Director of Investor Relations

    • Tenure: 4.8yrs
  • Larry Ott (60yo)

    Senior VP & Chief Human Resources Officer

    • Tenure: 6yrs
  • Joanna Totsky

    Senior VP

    • Tenure: 0.5yrs
  • Chris Couch (49yo)

    Senior VP & CTO

    • Tenure: 0.08yrs
  • Jeff DeBest (56yo)

    Executive VP & President of Advanced Technology Group

    • Tenure: 1.9yrs
    • Compensation: US$1.74m
  • Jon Banas (48yo)

    Executive VP & CFO

    • Tenure: 2.6yrs
    • Compensation: US$1.01m
  • Peter Brusate (43yo)

    Chief Accounting Officer

    • Tenure: 2.6yrs

Board Members

  • Thomas Sidlik (69yo)

    Independent Director

    • Tenure: 6yrs
    • Compensation: US$228.19k
  • Stephen Van Oss (64yo)

    Independent Director

    • Tenure: 11.4yrs
    • Compensation: US$228.19k
  • Bob Remenar (64yo)

    Independent Director

    • Tenure: 4.7yrs
    • Compensation: US$228.19k
  • Jeff Edwards (57yo)

    Chairman & CEO

    • Tenure: 7.3yrs
    • Compensation: US$4.17m
  • Matt Simoncini (58yo)

    Independent Director

    • Tenure: 1.4yrs
    • Compensation: US$142.74k
  • Justin Mirro (50yo)

    Independent Director

    • Tenure: 4.7yrs
    • Compensation: US$218.19k
  • Sonya Sepahban (58yo)

    Independent Director

    • Tenure: 3.7yrs
    • Compensation: US$218.19k
  • David Mastrocola (58yo)

    Lead Director

    • Tenure: 9yrs
    • Compensation: US$238.19k
  • Peifang Zhang (58yo)

    Independent Director

    • Tenure: 2.7yrs
    • Compensation: US$218.19k

Company Information

Cooper-Standard Holdings Inc.'s company bio, 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
  • Market Cap: US$466.938m
  • Shares outstanding: 16.84m
  • Website: https://www.cooperstandard.com

Number of Employees


Location

  • Cooper-Standard Holdings Inc.
  • 39550 Orchard Hill Place Drive
  • Novi
  • Michigan
  • 48375
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CPSNYSE (New York Stock Exchange)YesCommon StockUSUSDMay 2010
C31DB (Deutsche Boerse AG)YesCommon StockDEEURMay 2010

Biography

Cooper-Standard Holdings Inc., through its subsidiary, Cooper-Standard Automotive Inc., designs, manufactures, and sells sealing, fuel and brake delivery, fluid transfer, and anti-vibration systems worldwide. It operates in four segments: North America, Europe, Asia Pacific, and South America. The company’s sealing systems include dynamic and static seals, encapsulated glasses, stainless steel trims, flush glass systems, variable extrusions, and specialty sealing products. Its fuel and brake delivery systems comprise chassis and tank fuel lines and bundles, metallic brake lines and bundles, quick connects, direct injection and port fuel rails, and tube coatings. The company’s fluid transfer systems consist of heater/coolant hoses, DPF and SCR emission lines, degas tanks, air intake and charge products, and transmission oil cooling hoses, as well as turbo charger, secondary air, and brake and clutch hoses. It also provides anti-vibration systems, such as powertrain mount systems that include multi-state vacuum switchable hydraulic engine, bi-state electric switchable hydraulic engine, conventional hydraulic, and elastomeric mounts; and chassis suspension components, which comprise conventional and hydraulic body mounts and bushings, as well as strut mounts, spring seats and bumpers, mass dampers, and dual durometer bushings. The company’s products are primarily used in passenger vehicles and light trucks that are manufactured by automotive original equipment manufacturers and replacement markets. Cooper-Standard Holdings Inc. was founded in 1960 and is headquartered in Novi, Michigan. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/01/28 00:54
End of Day Share Price2020/01/27 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.