company background image
COOP

Mr. Cooper GroupNasdaqCM:COOP Stock Report

Market Cap

US$3.1b

7D

1.6%

1Y

52.0%

Updated

07 Dec, 2021

Data

Company Financials +
COOP fundamental analysis
Snowflake Score
Valuation4/6
Future Growth0/6
Past Performance4/6
Financial Health1/6
Dividends0/6

COOP Stock Overview

Mr. Cooper Group Inc. provides servicing, origination, and transaction-based services related to single-family residences in the United States.

Mr. Cooper Group Competitors

Rocket Companies

NYSE:RKT

US$31.1b

MGIC Investment

NYSE:MTG

US$4.6b

PennyMac Financial Services

NYSE:PFSI

US$4.0b

Radian Group

NYSE:RDN

US$3.7b

Price History & Performance

Summary of all time highs, changes and price drops for Mr. Cooper Group
Historical stock prices
Current Share PriceUS$41.17
52 Week HighUS$45.27
52 Week LowUS$25.81
Beta1.59
1 Month Change-6.26%
3 Month Change2.13%
1 Year Change52.03%
3 Year Change197.26%
5 Year Change121.34%
Change since IPO243.08%

Recent News & Updates

Sep 10

Mr. Cooper Group: Revenues To Naturally Decline After This Year

The refinancing market has so far proved to be more resilient than previously anticipated. The management sees further refinancing opportunities. The eventual normalization of the refinancing market will drag earnings next year. The current market price is above next year’s target price.

Shareholder Returns

COOPUS MortgageUS Market
7D1.6%1.3%-2.6%
1Y52.0%0.09%17.8%

Return vs Industry: COOP exceeded the US Mortgage industry which returned -0.9% over the past year.

Return vs Market: COOP exceeded the US Market which returned 16.5% over the past year.

Price Volatility

Is COOP's price volatile compared to industry and market?
COOP volatility
COOP Average Weekly Movement2.8%
Mortgage Industry Average Movement3.7%
Market Average Movement6.2%
10% most volatile stocks in US Market14.8%
10% least volatile stocks in US Market2.4%

Stable Share Price: COOP is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: COOP's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
n/a9,800Jay Brayhttps://www.mrcoopergroup.com

Mr. Cooper Group Inc. provides servicing, origination, and transaction-based services related to single-family residences in the United States. The company operates through three segments: Servicing, Originations, and Xome. The Servicing segment performs activities for underlying mortgages, including collecting and disbursing borrower payments, investor reporting, customer service, and modifying loans.

Mr. Cooper Group Fundamentals Summary

How do Mr. Cooper Group's earnings and revenue compare to its market cap?
COOP fundamental statistics
Market CapUS$3.09b
Earnings (TTM)US$1.46b
Revenue (TTM)US$3.68b

2.1x

P/E Ratio

0.9x

P/B Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
COOP income statement (TTM)
RevenueUS$3.68b
Cost of RevenueUS$0
Gross ProfitUS$3.68b
ExpensesUS$2.22b
EarningsUS$1.46b

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)19.42
Gross Margin100.00%
Net Profit Margin39.64%
Debt/Equity Ratio398.3%

How did COOP perform over the long term?

See historical performance and comparison

Valuation

Is Mr. Cooper Group 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: COOP ($41.17) is trading below our estimate of fair value ($266.26)

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


Price To Earnings Ratio

PE vs Industry: COOP is good value based on its PE Ratio (2.1x) compared to the US Mortgage industry average (12.3x).

PE vs Market: COOP is good value based on its PE Ratio (2.1x) compared to the US market (16.8x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: COOP's PB Ratio (0.9x) is in line with the US Mortgage industry average.


Future Growth

How is Mr. Cooper Group forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

-50.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: COOP's earnings are forecast to decline over the next 3 years (-50.9% per year).

Earnings vs Market: COOP's earnings are forecast to decline over the next 3 years (-50.9% per year).

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

Revenue vs Market: COOP's revenue is expected to decline over the next 3 years (-16.9% per year).

High Growth Revenue: COOP's revenue is forecast to decline over the next 3 years (-16.9% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: COOP's Return on Equity is forecast to be low in 3 years time (13.9%).


Past Performance

How has Mr. Cooper Group performed over the past 5 years?

33.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: COOP has a high level of non-cash earnings.

Growing Profit Margin: COOP's current net profit margins (39.6%) are higher than last year (22.7%).


Past Earnings Growth Analysis

Earnings Trend: COOP's earnings have grown significantly by 33.8% per year over the past 5 years.

Accelerating Growth: COOP's earnings growth over the past year (159.1%) exceeds its 5-year average (33.8% per year).

Earnings vs Industry: COOP earnings growth over the past year (159.1%) exceeded the Mortgage industry 32.1%.


Return on Equity

High ROE: Whilst COOP's Return on Equity (45.95%) is outstanding, this metric is skewed due to their high level of debt.


Financial Health

How is Mr. Cooper Group's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Asset Level: COOP's Assets to Equity ratio (6.6x) is low.

Allowance for Bad Loans: Insufficient data to determine if COOP has a sufficient allowance for bad loans.

Low Risk Liabilities: COOP reports no customer deposits, 100% of its liabilities are made up of higher risk sources of funding.

Loan Level: Insufficient data to determine if COOP has an appropriate level of Loans to Assets ratio.

Low Risk Deposits: COOP reports no customer deposits, loans are made up entirely of externally borrowed funds.

Level of Bad Loans: Insufficient data to determine if COOP has an appropriate level of bad loans.


Dividend

What is Mr. Cooper Group current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

High Dividend: Unable to evaluate COOP'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 COOP's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if COOP'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 COOP's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

1.6yrs

Average management tenure


CEO

Jay Bray (54 yo)

3.42yrs

Tenure

US$9,261,290

Compensation

Mr. Jay Bray has been Chairman and Chief Executive Officer at Mr. Cooper Group Inc. since July 2018 and served as President since July 2018 until June 23, 2021. Mr. Bray has been Chief Executive Officer of...


CEO Compensation Analysis

Compensation vs Market: Jay's total compensation ($USD9.26M) is above average for companies of similar size in the US market ($USD5.29M).

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


Leadership Team

Experienced Management: COOP's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Members

Experienced Board: COOP's board of directors are considered experienced (3.4 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

Mr. Cooper Group Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Mr. Cooper Group Inc.
  • Ticker: COOP
  • Exchange: NasdaqCM
  • Founded: NaN
  • Industry: Thrifts and Mortgage Finance
  • Sector: Banks
  • Market Cap: US$3.093b
  • Shares outstanding: 75.12m
  • Website: https://www.mrcoopergroup.com

Number of Employees


Location

  • Mr. Cooper Group Inc.
  • 8950 Cypress Waters Boulevard
  • Coppell
  • Texas
  • 75019
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/12/07 00:15
End of Day Share Price2021/12/06 00:00
Earnings2021/09/30
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.