Stock Analysis

Investing in Mr. Cooper Group (NASDAQ:COOP) five years ago would have delivered you a 251% gain

NasdaqCM:COOP
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The most you can lose on any stock (assuming you don't use leverage) is 100% of your money. But when you pick a company that is really flourishing, you can make more than 100%. Long term Mr. Cooper Group Inc. (NASDAQ:COOP) shareholders would be well aware of this, since the stock is up 251% in five years. We note the stock price is up 1.7% in the last seven days.

So let's investigate and see if the longer term performance of the company has been in line with the underlying business' progress.

See our latest analysis for Mr. Cooper Group

In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.

During five years of share price growth, Mr. Cooper Group achieved compound earnings per share (EPS) growth of 60% per year. This EPS growth is higher than the 29% average annual increase in the share price. So it seems the market isn't so enthusiastic about the stock these days.

You can see below how EPS has changed over time (discover the exact values by clicking on the image).

earnings-per-share-growth
NasdaqCM:COOP Earnings Per Share Growth October 10th 2023

This free interactive report on Mr. Cooper Group's earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further.

A Different Perspective

We're pleased to report that Mr. Cooper Group shareholders have received a total shareholder return of 28% over one year. Having said that, the five-year TSR of 29% a year, is even better. It's always interesting to track share price performance over the longer term. But to understand Mr. Cooper Group better, we need to consider many other factors. Take risks, for example - Mr. Cooper Group has 3 warning signs (and 1 which is concerning) we think you should know about.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American exchanges.

Valuation is complex, but we're helping make it simple.

Find out whether Mr. Cooper Group is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

View the Free Analysis

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.