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.

Rewards

Trading at 64% below its fair value

Earnings are forecast to grow 73.29% per year

Earnings grew by 28.4% over the past year

Risk Analysis

Large one-off items impacting financial results



Snowflake Analysis

Flawless balance sheet and fair 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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.9%

CTB

2.4%

US Auto Components

0.8%

US Market


1 Year Return

-5.9%

CTB

11.5%

US Auto Components

17.8%

US Market

Return vs Industry: CTB underperformed the US Auto Components industry which returned 11.5% over the past year.

Return vs Market: CTB underperformed the US Market which returned 17.8% over the past year.


Shareholder returns

CTBIndustryMarket
7 Day1.9%2.4%0.8%
30 Day0.07%-1.8%1.8%
90 Day10.6%3.4%4.1%
1 Year-4.5%-5.9%13.2%11.5%20.4%17.8%
3 Year-20.9%-24.0%3.6%-6.9%45.9%36.4%
5 Year-1.5%-7.5%18.9%1.9%68.1%49.6%

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 ($29.33) is trading below our estimate of fair value ($81.47)

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


Price To Earnings Ratio

PE vs Industry: CTB is poor value based on its PE Ratio (32.9x) compared to the Auto Components industry average (17.2x).

PE vs Market: CTB is poor value based on its PE Ratio (32.9x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: CTB is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: CTB is overvalued based on its PB Ratio (1.2x) compared to the US Auto Components industry average (1.2x).


Next Steps

Future Growth

How is Cooper Tire & Rubber forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

73.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CTB's forecast earnings growth (73.3% per year) is above the savings rate (1.7%).

Earnings vs Market: CTB's earnings (73.3% per year) are forecast to grow faster than the US market (14.2% per year).

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

Revenue vs Market: CTB's revenue (3% per year) is forecast to grow slower than the US market (7.4% per year).

High Growth Revenue: CTB's revenue (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 (11.4%).


Next Steps

Past Performance

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

-25.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CTB has a large one-off loss of $91.8M impacting its September 30 2019 financial results.

Growing Profit Margin: CTB's current net profit margins (1.6%) are higher than last year (1.2%).


Past Earnings Growth Analysis

Earnings Trend: CTB's earnings have declined by -25.3% per year over the past 5 years.

Accelerating Growth: CTB's earnings growth over the past year (28.4%) exceeds its 5-year average (-25.3% per year).

Earnings vs Industry: CTB earnings growth over the past year (28.4%) exceeded the Auto Components industry 4.1%.


Return on Equity

High ROE: CTB's Return on Equity (3.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Cooper Tire & Rubber's financial position?


Financial Position Analysis

Short Term Liabilities: CTB's short term assets ($1.4B) exceed its short term liabilities ($764.9M).

Long Term Liabilities: CTB's short term assets ($1.4B) exceed its long term liabilities ($663.3M).


Debt to Equity History and Analysis

Debt Level: CTB's debt to equity ratio (24.1%) is considered satisfactory.

Reducing Debt: CTB's debt to equity ratio has reduced from 46.8% to 24.1% over the past 5 years.

Debt Coverage: CTB's debt is well covered by operating cash flow (67.6%).

Interest Coverage: CTB's interest payments on its debt are well covered by EBIT (9x coverage).


Balance Sheet

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

Debt Coverage by Assets: CTB's debt is covered by short term assets (assets are 4.5x debt).


Next Steps

Dividend

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

1.43%

Current Dividend Yield


Dividend Yield vs Market

company1.4%marketbottom25%1.4%markettop25%3.7%industryaverage1.8%forecastin3Years1.4%

Current dividend yield vs market & industry

Notable Dividend: CTB's dividend (1.43%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: CTB's dividend (1.43%) is low compared to the top 25% of dividend payers in the US market (3.72%).


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 reasonably low payout ratio (47.1%), 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 (13.1% payout ratio).


Next Steps

Management

What is the CEO of Cooper Tire & Rubber's salary, the management and board of directors tenure and is there insider trading?

1.8yrs

Average management tenure


CEO

Brad Hughes (57yo)

3.3yrs

Tenure

US$4,463,941

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 ($USD4.46M) is about average for companies of similar size in the US market ($USD3.87M).

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


Management Age and Tenure

1.8yrs

Average Tenure

51yo

Average Age

Experienced Management: CTB's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Age and Tenure

3.5yrs

Average Tenure

61yo

Average Age

Experienced Board: CTB's board of directors are considered experienced (3.5 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.


Ownership Breakdown

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


Management Team

  • Steve Zamansky (48yo)

    Senior VP

    • Tenure: 8.7yrs
    • Compensation: US$1.38m
  • Chris Eperjesy (51yo)

    Senior VP & CFO

    • Tenure: 1yrs
    • Compensation: US$685.96k
  • Luis Ceneviz

    Senior VP & President of International

    • Tenure: 4.8yrs
  • Phil Kortokrax

    Senior Vice President of Global Operations & Procurement

    • Tenure: 1.8yrs
  • Brad Hughes (57yo)

    President

    • Tenure: 3.3yrs
    • Compensation: US$4.46m
  • John Bodart

    Senior Vice President of Transformation

    • Tenure: 0.3yrs
  • Ben Patel (51yo)

    Senior VP & CTO

    • Tenure: 0.08yrs
  • Mark Young (42yo)

    Director of External Reporting

    • Tenure: 4.8yrs
  • Jerry Bialek

    VP & Treasurer

    • Tenure: 1.8yrs
  • Chris Ball

    Senior VP & President of North America

    • Tenure: 1.8yrs

Board Members

  • Brian Walker (57yo)

    Independent Director

    • Tenure: 1.2yrs
  • Robert Welding (70yo)

    Independent Director

    • Tenure: 12.3yrs
    • Compensation: US$240.00k
  • Susan Davis (65yo)

    Independent Director

    • Tenure: 3.8yrs
    • Compensation: US$225.00k
  • Thomas Capo (68yo)

    Non-Executive Chairman

    • Tenure: 3.3yrs
    • Compensation: US$362.00k
  • Steven Chapman (65yo)

    Independent Director

    • Tenure: 13.9yrs
    • Compensation: US$225.00k
  • John Holland (69yo)

    Independent Director

    • Tenure: 16.9yrs
    • Compensation: US$245.00k
  • Gary Michel (56yo)

    Independent Director

    • Tenure: 4.2yrs
    • Compensation: US$225.00k
  • Brad Hughes (57yo)

    President

    • Tenure: 3.3yrs
    • Compensation: US$4.46m
  • Tracey Joubert (52yo)

    Independent Director

    • Tenure: 2.1yrs
    • Compensation: US$225.00k
  • Katy Dickson (54yo)

    Independent Director

    • Tenure: 1.2yrs

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$1.466b
  • Shares outstanding: 50.18m
  • 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 Analysis2019/12/11 23:34
End of Day Share Price2019/12/11 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.