Mr. Cooper Group Inc.
Mr. Cooper Group Inc. Fundamental Analysis
Mr. Cooper Group Inc. (COOP) shows moderate financial fundamentals with a PE ratio of 27.53, profit margin of 26.29%, and ROE of 9.93%. The company generates $1.9B in annual revenue with strong year-over-year growth of 24.02%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 33.6/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze COOP's fundamental strength across five key dimensions:
Efficiency Score
WeakCOOP struggles to generate sufficient returns from assets.
Valuation Score
ModerateCOOP shows balanced valuation metrics.
Growth Score
ExcellentCOOP delivers strong and consistent growth momentum.
Financial Health Score
WeakCOOP carries high financial risk with limited liquidity.
Profitability Score
WeakCOOP struggles to sustain strong margins.
Key Financial Metrics
Is COOP Expensive or Cheap?
P/E Ratio
COOP trades at 27.53 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, COOP's PEG of -35.31 indicates potential undervaluation.
Price to Book
The market values Mr. Cooper Group Inc. at 2.65 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 4.34 times EBITDA. This is generally considered low.
How Well Does COOP Make Money?
Net Profit Margin
For every $100 in sales, Mr. Cooper Group Inc. keeps $26.29 as profit after all expenses.
Operating Margin
Core operations generate 37.07 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $9.93 in profit for every $100 of shareholder equity.
ROA
Mr. Cooper Group Inc. generates $2.65 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Mr. Cooper Group Inc. generates limited operating cash flow of $-278.03M, signaling weaker underlying cash strength.
Free Cash Flow
Mr. Cooper Group Inc. generates weak or negative free cash flow of $-603.06M, restricting financial flexibility.
FCF Per Share
Each share generates $-9.42 in free cash annually.
FCF Yield
COOP converts -4.47% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
27.53
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-35.31
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.65
vs 25 benchmark
P/S Ratio
Price to sales ratio
7.24
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
2.17
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.56
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.10
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.07
vs 25 benchmark
How COOP Stacks Against Its Sector Peers
| Metric | COOP Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 27.53 | 18.56 | Worse (Expensive) |
| ROE | 9.93% | 828.00% | Weak |
| Net Margin | 26.29% | -175.00% (disorted) | Strong |
| Debt/Equity | 2.17 | 1.00 | Weak (High Leverage) |
| Current Ratio | 0.56 | 663.54 | Weak Liquidity |
| ROA | 2.65% | -21308.00% (disorted) | Weak |
COOP outperforms its industry in 1 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Mr. Cooper Group Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
42.09%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
245.83%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
-246.08%
Industry Style: Value, Dividend, Cyclical
Declining