NYSE:CTB

Stock Analysis Report

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Executive Summary

Cooper Tire & Rubber Company, together with its subsidiaries, designs, manufactures, markets, and sells replacement tires in North America, Latin America, Europe, and Asia. More Details


Snowflake Analysis

Flawless balance sheet and good value.


Similar Companies

Share Price & News

How has Cooper Tire & Rubber's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CTB is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 10% a week.

Volatility Over Time: CTB's weekly volatility (10%) has been stable over the past year.


Market Performance


7 Day Return

1.2%

CTB

-2.6%

US Auto Components

-0.4%

US Market


1 Year Return

133.0%

CTB

81.7%

US Auto Components

36.2%

US Market

Return vs Industry: CTB exceeded the US Auto Components industry which returned 81.7% over the past year.

Return vs Market: CTB exceeded the US Market which returned 36.2% over the past year.


Shareholder returns

CTBIndustryMarket
7 Day1.2%-2.6%-0.4%
30 Day44.3%-1.9%-2.9%
90 Day43.8%7.3%5.0%
1 Year135.7%133.0%82.6%81.7%39.1%36.2%
3 Year88.7%81.0%21.5%13.2%48.4%39.0%
5 Year58.1%48.1%80.4%56.2%116.5%92.4%

Long-Term Price Volatility Vs. Market

How volatile is Cooper Tire & Rubber's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Cooper Tire & Rubber undervalued compared to its fair value and its price relative to the market?

20.41x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CTB ($57.92) is trading above our estimate of fair value ($48.79)

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


Price To Earnings Ratio

PE vs Industry: CTB is good value based on its PE Ratio (20.4x) compared to the US Auto Components industry average (24.6x).

PE vs Market: CTB is good value based on its PE Ratio (20.4x) compared to the US market (21.5x).


Price to Earnings Growth Ratio

PEG Ratio: CTB is good value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: CTB is good value based on its PB Ratio (2.1x) compared to the US Auto Components industry average (2.4x).


Next Steps

Future Growth

How is Cooper Tire & Rubber forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

21.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CTB's forecast earnings growth (21.1% per year) is above the savings rate (2%).

Earnings vs Market: CTB's earnings (21.1% per year) are forecast to grow faster than the US market (19.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: CTB's revenue (7.3% per year) is forecast to grow slower than the US market (10% per year).

High Growth Revenue: CTB's revenue (7.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CTB's Return on Equity is forecast to be low in 3 years time (13%).


Next Steps

Past Performance

How has Cooper Tire & Rubber performed over the past 5 years?

-25.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CTB has high quality earnings.

Growing Profit Margin: CTB's current net profit margins (5.7%) are higher than last year (3.5%).


Past Earnings Growth Analysis

Earnings Trend: CTB's earnings have declined by 25.7% per year over the past 5 years.

Accelerating Growth: CTB's earnings growth over the past year (48.4%) exceeds its 5-year average (-25.7% per year).

Earnings vs Industry: CTB earnings growth over the past year (48.4%) exceeded the Auto Components industry 16.5%.


Return on Equity

High ROE: CTB's Return on Equity (10.2%) is considered low.


Next Steps

Financial Health

How is Cooper Tire & Rubber's financial position?


Financial Position Analysis

Short Term Liabilities: CTB's short term assets ($1.6B) exceed its short term liabilities ($648.1M).

Long Term Liabilities: CTB's short term assets ($1.6B) exceed its long term liabilities ($912.9M).


Debt to Equity History and Analysis

Debt Level: CTB's debt to equity ratio (25%) is considered satisfactory.

Reducing Debt: CTB's debt to equity ratio has reduced from 30.3% to 25% over the past 5 years.

Debt Coverage: CTB's debt is well covered by operating cash flow (130.4%).

Interest Coverage: CTB's interest payments on its debt are well covered by EBIT (11.2x coverage).


Balance Sheet


Next Steps

Dividend

What is Cooper Tire & Rubber current dividend yield, its reliability and sustainability?

0.73%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CTB's dividend (0.73%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.31%).

High Dividend: CTB's dividend (0.73%) is low compared to the top 25% of dividend payers in the US market (3.64%).


Stability and Growth of Payments

Stable Dividend: CTB's dividends per share have been stable in the past 10 years.

Growing Dividend: CTB's dividend payments have not increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (14.8%), CTB's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CTB's dividends in 3 years are forecast to be thoroughly covered by earnings (10% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.3yrs

Average management tenure


CEO

Brad Hughes (58 yo)

4.5yrs

Tenure

US$5,456,705

Compensation

Mr. Bradley E. Hughes, also known as Brad, has been the Chief Executive Officer and President of Cooper Tire & Rubber Co. since September 1, 2016. Mr. Hughes served as the Chief Operating Officer and Senio...


CEO Compensation Analysis

Compensation vs Market: Brad's total compensation ($USD5.46M) is about average for companies of similar size in the US market ($USD4.96M).

Compensation vs Earnings: Brad's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Bradley Hughes
President4.5yrsUS$5.46m0.48%
$ 14.0m
Stephen Zamansky
Senior VP9.92yrsUS$1.47m0.15%
$ 4.3m
Gerald Bialek
Interim CFO0.58yrno data0.0064%
$ 188.1k
Mark Young
VP & Chief Accounting Officerno datano data0.0038%
$ 110.1k
Benny Patel
Senior VP & CTO1.33yrsno datano data
Jacob Drerup
Manager of Investor Relations3.08yrsno datano data
Paula Whitesell
Senior VP & Chief Human Resources Officer0.67yrno datano data
Philip Kortokrax
Senior Vice President of Global Operations & Procurement3yrsno datano data
John Bodart
Senior Vice President of Transformation1.5yrsno datano data
Luis Ceneviz
Senior VP & President of International0.75yrno datano data
Christopher Ball
Senior VP & President of North America3yrsno datano data
David Craig
Director of Corporate Strategy and International Sales & Marketingno datano datano data

2.3yrs

Average Tenure

51yo

Average Age

Experienced Management: CTB's management team is considered experienced (2.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Bradley Hughes
President4.5yrsUS$5.46m0.48%
$ 14.0m
Brian Walker
Independent Director2.42yrsUS$225.00kno data
Robert Welding
Independent Director13.58yrsUS$240.00k0.0060%
$ 173.8k
Susan Davis
Independent Director5.08yrsUS$225.00kno data
Steven Chapman
Independent Director15.17yrsUS$225.00k0.0052%
$ 152.5k
John Holland
Independent Non-Executive Chairman0.83yrUS$245.00k0.0080%
$ 234.0k
Gary Michel
Independent Director5.42yrsUS$225.00kno data
Tracey Joubert
Independent Director3.33yrsUS$225.00kno data
Tyrone Jordan
Director0.17yrno datano data
Kathryn Dickson
Independent Director2.42yrsUS$225.00k0.0050%
$ 144.9k

3.9yrs

Average Tenure

58yo

Average Age

Experienced Board: CTB's board of directors are considered experienced (3.9 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.


Ownership Breakdown

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


Top Shareholders

Company Information

Cooper Tire & Rubber Company's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Cooper Tire & Rubber Company
  • Ticker: CTB
  • Exchange: NYSE
  • Founded: 1914
  • Industry: Tires and Rubber
  • Sector: Automobiles
  • Market Cap: US$2.921b
  • Shares outstanding: 50.44m
  • Website: https://www.coopertire.com

Number of Employees


Location

  • Cooper Tire & Rubber Company
  • 701 Lima Avenue
  • Findlay
  • Ohio
  • 45840
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CTBNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1968
TI2DB (Deutsche Boerse AG)YesCommon StockDEEURJan 1968

Biography

Cooper Tire & Rubber Company, together with its subsidiaries, designs, manufactures, markets, and sells replacement tires in North America, Latin America, Europe, and Asia. The company operates through Ame...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/03/07 23:33
End of Day Share Price2021/03/05 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.