NYSE:CTB

Stock Analysis Report

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.


Snowflake Analysis

Flawless balance sheet, undervalued and pays a dividend.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

20.7%

CTB

23.7%

US Auto Components

9.4%

US Market


1 Year Return

-36.0%

CTB

-38.9%

US Auto Components

-6.8%

US Market

Return vs Industry: CTB exceeded the US Auto Components industry which returned -40.2% over the past year.

Return vs Market: CTB underperformed the US Market which returned -8.1% over the past year.


Shareholder returns

CTBIndustryMarket
7 Day20.7%23.7%9.4%
30 Day-13.0%-13.9%-3.9%
90 Day-26.2%-33.7%-16.5%
1 Year-34.9%-36.0%-38.0%-38.9%-4.8%-6.8%
3 Year-50.4%-52.4%-33.2%-39.9%23.4%15.2%
5 Year-47.7%-50.9%-30.9%-41.0%41.3%25.7%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CTB ($20.49) is trading below our estimate of fair value ($52.9)

Significantly Below Fair Value: CTB is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: CTB is good value based on its PE Ratio (10.7x) compared to the Auto Components industry average (11.6x).

PE vs Market: CTB is good value based on its PE Ratio (10.7x) compared to the US market (13.3x).


Price to Earnings Growth Ratio

PEG Ratio: CTB is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: CTB is overvalued based on its PB Ratio (0.8x) compared to the US Auto Components industry average (0.7x).


Next Steps

Future Growth

How is Cooper Tire & Rubber forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

21.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CTB's forecast earnings growth (21.7% per year) is above the savings rate (1.7%).

Earnings vs Market: CTB's earnings (21.7% per year) are forecast to grow faster than the US market (13.3% per year).

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

Revenue vs Market: CTB's revenue (0.2% per year) is forecast to grow slower than the US market (6.9% per year).

High Growth Revenue: CTB's revenue (0.2% 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 (11.5%).


Next Steps

Past Performance

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

-28.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CTB has a large one-off loss of $49.9M impacting its December 31 2019 financial results.

Growing Profit Margin: CTB's current net profit margins (3.5%) are higher than last year (2.7%).


Past Earnings Growth Analysis

Earnings Trend: CTB's earnings have declined by -28.1% per year over the past 5 years.

Accelerating Growth: CTB's earnings growth over the past year (25.9%) exceeds its 5-year average (-28.1% per year).

Earnings vs Industry: CTB earnings growth over the past year (25.9%) exceeded the Auto Components industry -4.2%.


Return on Equity

High ROE: CTB's Return on Equity (7.4%) 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 ($1.5B) exceed its short term liabilities ($604.1M).

Long Term Liabilities: CTB's short term assets ($1.5B) exceed its long term liabilities ($870.5M).


Debt to Equity History and Analysis

Debt Level: CTB's debt to equity ratio (24.9%) is considered satisfactory.

Reducing Debt: CTB's debt to equity ratio has reduced from 40.2% to 24.9% over the past 5 years.

Debt Coverage: CTB's debt is well covered by operating cash flow (87.9%).

Interest Coverage: CTB's interest payments on its debt are well covered by EBIT (8.4x coverage).


Balance Sheet


Next Steps

Dividend

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

2.05%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CTB's dividend (2.05%) is higher than the bottom 25% of dividend payers in the US market (1.89%).

High Dividend: CTB's dividend (2.05%) is low compared to the top 25% of dividend payers in the US market (5.26%).


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 (21.9%), CTB's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CTB's dividends in 3 years are forecast to be thoroughly covered by earnings (14.5% payout ratio).


Next Steps

Management

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

2.1yrs

Average management tenure


CEO

Brad Hughes (57yo)

3.58s

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 ($USD5.46M) is above average for companies of similar size in the US market ($USD3.17M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Bradley Hughes
President3.58yrsUS$5.46m0.43% $4.4m
Christopher Eperjesy
Senior VP & CFO1.33yrsUS$1.84m0.0043% $44.7k
Stephen Zamansky
Senior VP9yrsUS$1.47m0.14% $1.4m
Mark Young
Chief Accounting Officerno datano data0.0031% $31.8k
Benny Patel
Senior VP & CTO0.42yrno datano data
Philip Kortokrax
Senior Vice President of Global Operations & Procurement2.08yrsno datano data
John Bodart
Senior Vice President of Transformation0.58yrno datano data
Christopher Ball
Senior VP & President of Americas2.08yrsno datano data
Gerald Bialek
VP & Treasurer2.17yrsno datano data
David Craig
Director of Corporate Strategy and International Sales & Marketingno datano datano data

2.1yrs

Average Tenure

51yo

Average Age

Experienced Management: CTB's management team is considered experienced (2.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Bradley Hughes
President3.58yrsUS$5.46m0.43% $4.4m
Brian Walker
Independent Director1.5yrsUS$225.00kno data
Robert Welding
Independent Director12.67yrsUS$240.00k0.0060% $61.5k
Susan Davis
Independent Director4.17yrsUS$225.00kno data
Thomas Capo
Independent Non-Executive Chairman3.58yrsUS$362.00kno data
Steven Chapman
Independent Director14.25yrsUS$225.00k0.0052% $53.9k
John Holland
Independent Director17.25yrsUS$225.00k0.0080% $82.8k
Gary Michel
Independent Director4.5yrsUS$225.00kno data
Tracey Joubert
Independent Director2.42yrsUS$225.00kno data
Kathryn Dickson
Independent Director1.5yrsUS$225.00k0.0050% $51.2k

3.9yrs

Average Tenure

61yo

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: CTB 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 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$1.030b
  • Shares outstanding: 50.27m
  • 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 Americas Tire Operations and International Tire Operations segments. It offers passenger car, light truck, truck and bus radial (TBR), motorcycle, and racing tires, as well as tire retread materials; and markets and distributes racing, TBR, and motorcycle tires. The company sells its products to independent tire dealers, wholesale distributors, regional and national retail tire chains, large retail chains, and other tire and automotive product retail chains, mass merchandisers, and digital channels as well as original equipment manufacturers; and directly to end users through three owned retail stores. Cooper Tire & Rubber Company was founded in 1914 and is headquartered in Findlay, Ohio. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/09 01:20
End of Day Share Price2020/04/08 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.