NasdaqCM:COOP

Stock Analysis Report

Executive Summary

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

Rewards

Trading at 68% below its fair value

Earnings are forecast to grow 95.55% per year

Risk Analysis

No risks detected for COOP from our risk checks.


Snowflake Analysis

Reasonable growth potential and fair value.


Similar Companies

Share Price & News

How has Mr. Cooper Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: COOP has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.3%

COOP

-1.9%

US Mortgage

0.06%

US Market


1 Year Return

-0.9%

COOP

5.7%

US Mortgage

19.4%

US Market

Return vs Industry: COOP underperformed the US Mortgage industry which returned 5.7% over the past year.

Return vs Market: COOP underperformed the US Market which returned 19.4% over the past year.


Shareholder returns

COOPIndustryMarket
7 Day2.3%-1.9%0.06%
30 Day5.8%-1.8%1.1%
90 Day15.4%-1.8%8.9%
1 Year-0.9%-0.9%8.2%5.7%21.9%19.4%
3 Year-7.5%-7.5%19.0%10.6%48.9%39.3%
5 Year-48.2%-48.2%60.2%42.4%71.9%53.1%

Price Volatility Vs. Market

How volatile is Mr. Cooper Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

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 ($14.43) is trading below our estimate of fair value ($45.11)

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


Price To Earnings Ratio

PE vs Industry: COOP is unprofitable, so we can't compare its PE Ratio to the Mortgage industry average.

PE vs Market: COOP is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate COOP's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: COOP is good value based on its PB Ratio (0.7x) compared to the US Mortgage industry average (1.1x).


Next Steps

Future Growth

How is Mr. Cooper Group forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

95.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: COOP is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

Earnings vs Market: COOP is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: COOP's is expected to become profitable in the next 3 years.

Revenue vs Market: COOP's revenue (10.8% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: COOP's revenue (10.8% per year) is forecast to grow slower than 20% 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 (11.4%).


Next Steps

Past Performance

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

55.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: COOP is currently unprofitable.

Growing Profit Margin: COOP is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: COOP is unprofitable, but has reduced losses over the past 5 years at a rate of 55.7% per year.

Accelerating Growth: Unable to compare COOP's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: COOP is unprofitable, making it difficult to compare its past year earnings growth to the Mortgage industry (11.1%).


Return on Equity

High ROE: COOP has a negative Return on Equity (-18.51%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

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

Inventory Level: COOP has a low level of unsold assets or inventory.

Debt Coverage by Assets: COOP's debt is not covered by short term assets (assets are 1x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: COOP has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: COOP has been profitable on average in the past, therefore cash runway is not a concern.


Financial Institutions Analysis

Asset Level: COOP's level of assets compared to its equity is moderate.

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, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if COOP has an acceptable proportion of non-loan assets held.

Low Risk Deposits: COOP has advanced significantly more loans than the customer deposits it holds.

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


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.9%forecastin3Years0%

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate COOP'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 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?

1.0yrs

Average management tenure


CEO

Jay Bray (52yo)

1.6yrs

Tenure

US$25,119,076

Compensation

Mr. Jay Bray serves as the Chairman, President and Chief Executive Officer of WMIH. He has been Chief Executive Officer of Nationstar Mortgage Holdings Inc. since February 2012 and has been its President s ...


CEO Compensation Analysis

Compensation vs Market: Jay's total compensation ($USD25.12M) is above average for companies of similar size in the US market ($USD3.81M).

Compensation vs Earnings: Insufficient data to compare Jay's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Jay Bray
Chairman1.6yrsUS$25.12m1.93% $24.5m
Anthony Ebers
Executive VP & COO1.6yrsUS$11.25m0.10% $1.3m
Michael Rawls
Executive VP & CEO of Xome0yrsUS$3.54m0.059% $754.1k
Christopher Marshall
Vice Chairman & CFO0.9yrsno data0.79% $10.0m
Sridhar Sharma
Executive VP & Chief Information Officer1yrsno datano data
Kenneth Posner
Senior VP of Strategic Planning & Investor Relations0yrsno datano data
Steve Covington
Executive VP1yrsno datano data
Kelly Doherty
Executive VP and Chief People & Communications Officer1yrsno datano data
Kevin Dahlstrom
Executive VP & Chief Marketing Officer1yrsno datano data
Charles Smith
Executive VP & Assistant Secretary0yrsUS$523.69kno data

1.0yrs

Average Tenure

52.5yo

Average Age

Experienced Management: COOP's management team is not considered experienced ( 1 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Jay Bray
Chairman1.6yrsUS$25.12m1.93% $24.5m
Roy Guthrie
Independent Lead Director0yrsUS$630.87k0.025% $311.1k
Robert Gidel
Independent Director1.6yrsUS$591.90kno data
Tagar Olson
Independent Director4.8yrsno datano data
Steven Scheiwe
Independent Director8.1yrsUS$213.75k0.049% $625.0k
Elizabeth Burr
Independent Director0yrsno datano data
Michael Malone
Independent Director1.6yrsUS$616.90k0.056% $705.5k
Christopher Harrington
Independent Director2.7yrsno datano data

2.1yrs

Average Tenure

57.5yo

Average Age

Experienced Board: COOP's board of directors are not considered experienced ( 2.1 years average tenure), which suggests a new board.


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 company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Mr. Cooper Group Inc.
  • Ticker: COOP
  • Exchange: NasdaqCM
  • Founded:
  • Industry: Thrifts and Mortgage Finance
  • Sector: Banks
  • Market Cap: US$1.270b
  • Shares outstanding: 91.09m
  • Website: https://mrcoopergroup.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
COOPNasdaqCM (Nasdaq Capital Market)YesNew Common StockUSUSDMar 2012
07WADB (Deutsche Boerse AG)YesNew Common StockDEEURMar 2012

Biography

Mr. Cooper Group Inc. provides servicing, origination, and transaction-based services related principally to single-family residences in the United States. The company operates through three segments: Servicing, Originations, and Xome. The Servicing segment performs activities for originated and purchased loans, as well as operates as a subservicer for various clients that own the underlying servicing rights. The Originations segment originates, purchases, and sells mortgage loans. The Xome segment offers technology and data enhanced solutions to home buyers, home sellers, real estate professionals, and companies engaged in the servicing and origination of mortgage loans. The company operates primarily under the Mr. Cooper and Xome brands. The company was formerly known as WMIH Corp. and changed its name to Mr. Cooper Group Inc. in October 2018. Mr. Cooper Group Inc. is headquartered in Coppell, Texas. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/19 01:20
End of Day Share Price2020/02/18 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.