NasdaqCM:COOP

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Executive Summary

Mr. Cooper Group Inc. (NASDAQ: COOP) provides quality servicing, origination and transaction-based services related principally to single-family residences throughout the United States with operations under its primary brands: Mr. More Details


Snowflake Analysis

Undervalued with concerning outlook.


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 is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: COOP's weekly volatility has decreased from 12% to 5% over the past year.


Market Performance


7 Day Return

3.7%

COOP

0.4%

US Mortgage

2.3%

US Market


1 Year Return

132.5%

COOP

3.6%

US Mortgage

23.7%

US Market

Return vs Industry: COOP exceeded the US Mortgage industry which returned 3.6% over the past year.

Return vs Market: COOP exceeded the US Market which returned 23.7% over the past year.


Shareholder returns

COOPIndustryMarket
7 Day3.7%0.4%2.3%
30 Day-3.4%0.5%4.7%
90 Day28.9%10.8%14.5%
1 Year132.5%132.5%6.7%3.6%26.5%23.7%
3 Year152.8%152.8%20.1%10.5%45.0%35.4%
5 Year3.0%3.0%84.5%58.4%126.2%100.9%

Long-Term 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 ($29.9) is trading below our estimate of fair value ($81.06)

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 (4.8x) compared to the US Mortgage industry average (13.2x).

PE vs Market: COOP is good value based on its PE Ratio (4.8x) compared to the US market (21.3x).


Price to Earnings Growth Ratio

PEG Ratio: COOP is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: COOP is overvalued based on its PB Ratio (1.2x) compared to the US Mortgage industry average (0.9x).


Next Steps

Future Growth

How is Mr. Cooper Group forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

6.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: COOP's forecast earnings growth (6.2% per year) is above the savings rate (2%).

Earnings vs Market: COOP's earnings (6.2% per year) are forecast to grow slower than the US market (21.6% per year).

High Growth Earnings: COOP's earnings are forecast to grow, but not significantly.

Revenue vs Market: COOP's revenue is expected to decline over the next 3 years (-2.1% per year).

High Growth Revenue: COOP's revenue is forecast to decline over the next 3 years (-2.1% 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 (12.2%).


Next Steps

Past Performance

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

50.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: COOP has a large one-off loss of $102.0M impacting its September 30 2020 financial results.

Growing Profit Margin: COOP's current net profit margins (22.8%) are lower than last year (38.6%).


Past Earnings Growth Analysis

Earnings Trend: COOP has become profitable over the past 5 years, growing earnings by 50.5% per year.

Accelerating Growth: COOP's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: COOP had negative earnings growth (-36.5%) over the past year, making it difficult to compare to the Mortgage industry average (2.7%).


Return on Equity

High ROE: Whilst COOP's Return on Equity (24.65%) is high, this metric is skewed due to their high level of debt.


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


Financial Institutions Analysis

Asset Level: COOP's Assets to Equity ratio (9.3x) 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.


Next Steps

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?

1.9yrs

Average management tenure


CEO

Jay Bray (53 yo)

2.5yrs

Tenure

US$7,194,496

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 ($USD7.19M) is above average for companies of similar size in the US market ($USD5.01M).

Compensation vs Earnings: Jay's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Jay Bray
Chairman2.5yrsUS$7.19m0.71%
$ 19.2m
Christopher Marshall
Vice Chairman & CFO1.83yrsUS$9.13m0.28%
$ 7.7m
Anthony Ebers
Executive VP & COO2.5yrsUS$4.28m0.19%
$ 5.2m
Michael Rawls
Executive VP & CEO of Xome1yrUS$2.69m0.090%
$ 2.4m
Sridhar Sharma
Executive VP & Chief Information Officer1.92yrsno datano data
Kenneth Posner
Senior Vice President of Strategic Planning & Investor Relationsno datano datano data
Steve Covington
Executive VP1.92yrsno datano data
Eldridge Burns
Executive VP & Chief Legal Officer0.42yrno datano data
Kelly Doherty
Executive VP and Chief People & Communications Officer1.92yrsno datano data
Charles Smith
Executive VP & Assistant Secretaryno dataUS$523.69kno data
Peter Struck
Senior Vice Presidentno datano datano data
Weijia Wu
Senior Vice Presidentno datano datano data

1.9yrs

Average Tenure

53yo

Average Age

Experienced Management: COOP's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Jay Bray
Chairman2.5yrsUS$7.19m0.71%
$ 19.2m
Roy Guthrie
Independent Lead Directorno dataUS$290.83k0.92%
$ 25.0m
Robert Gidel
Independent Director2.5yrsUS$240.00k0.26%
$ 7.0m
Tagar Olson
Independent Director5.67yrsno datano data
Steven Scheiwe
Independent Director9yrsUS$261.67k0.049%
$ 1.3m
Elizabeth Burr
Independent Director2yrsUS$170.17k0.030%
$ 821.7k
Michael Malone
Independent Director2.5yrsUS$230.00k0.11%
$ 3.0m
Christopher Harrington
Independent Director3.58yrsno datano data
Shveta Mujumdar
Independent Director0.92yrno data0.017%
$ 464.0k

2.5yrs

Average Tenure

58yo

Average Age

Experienced Board: COOP's board of directors are not considered experienced ( 2.5 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: NaN
  • Industry: Thrifts and Mortgage Finance
  • Sector: Banks
  • Market Cap: US$2.717b
  • Shares outstanding: 90.85m
  • Website: https://www.mrcoopergroup.com

Number of Employees


Location

  • Mr. Cooper Group Inc.
  • 8950 Cypress Waters Boulevard
  • Coppell
  • Texas
  • 75019-4620
  • 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. (NASDAQ: COOP) provides quality servicing, origination and transaction-based services related principally to single-family residences throughout the United States with operations unde...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/22 23:35
End of Day Share Price2021/01/22 00:00
Earnings2020/09/30
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.