Fundamental analysis: Mr. Cooper Group Inc. (COOP)

Awarener score: 6.9

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Average), the business stability (Bottom) and growth (Superb), and the company's inclination to return cash to the stockholders (Excellent).

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: 5.5

Business has been growing at an extremely fast pace. It's been great when measured against peer companies.
Mr. Cooper Group Inc. business varies wildly, ups and downs could be very frequent. It's very risky. It looks bottom tier against rivals.

Margins score: 5.7

COOP profit margins -on goods and services sold- are usually good. They stand somewhat worse than rival companies.
Business profit on sales tends to be huge. It's encouraging in relation to competitors.
Profits on sales made -available to repay debt and purchase properties- are usually good. They remain in a weak position compared to peers.
Earnings -before income taxes and interests on loans taken- tend to be extremely poor in relation to total revenues. They're still bottom tier against similar companies.
Profits -before income taxes- are usually meagre considering total sales, and remain last-in-rank when measured against rivals.
Total net profit tends to be meagre when confronted to sales. Company stands last-in-rank when measured against comparable firms.

Growth score: 2.9

Mr. Cooper Group Inc. profit -on goods and services sold- has been growing at a good pace. It's been rather normal in relation to competitors.
In recent years, earnings -on operations- have been growing at a good step, which has been slightly worse than comparable firms.
In past years, the company couldn't always turn a profit -available to repay debt and purchase properties-, which compares last-in-rank when measured against peer enterprises.
In the previous years, the firm couldn't always make a profit -before income taxes and interests on loans taken-. It turns to be a disappointment compared to similar stocks.
In past years, at least once the company lost money -before income taxes-. It was bottom tier against rivals.
In the previous years, the firm had at least a total net loss, and last-in-rank when measured against peer companies.
Earnings per share have been shrinking in the past years. It's been in a very weak position compared to industry peers.

Miscellaneous score: 7.0

COOP had hardly to pay income taxes in relation to profits made in the past years. It's been somewhat better than peers.
The company does not report R&D expenses. It's meaningless to measure in relation to competitors.
We have insufficient data to estimate how effective is research and development effort. It stands unknown against rival companies.

Profitability score: 8.5

Mr. Cooper Group Inc. usually gets very good returns on the resources it controls. It proves below average when measured against peer firms.
The company normally gets very good proceeds -on the resources directly invested in the business-. They remain rather normal in relation to similar companies.
There's usually excellent profitability -in relation to owned resources-. It ranks almost average when measured against competitors.
In the past, got excellent returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's more than average in relation to comparable enterprises.

Usage of Funds score: 2.7

COOP on average doesn't generate genuine funds, so to buy or replace property, plants and equipment must either burn existing cash or increase debt. It stands more than average in relation to rival firms.
The company is usually heavily investing in new property, plant, and equipment, to expand its operating capabilities, which is more than average in relation to industry peers.
In the past twelve months the stock paid no dividends. It came bottom tier against competitors.
Has stopped or virtually stopped paying dividends. Unless they were a special one-shot payment, the company could be enduring difficult times. The company has behaved a disappointment compared to similar firms.
As no dividends are paid, it is useless trying to estimate their sustainability in time. Sustainability looks not applicable in regard to comparable companies.
The company usually significantly enlarges the pool of investors, resulting in more mouths feeding on the pie of profits. It remains in a very weak position compared to peer enterprises.
Repurchase effectiveness metric is very complex. Run again in analytical mode if you're interested in a technical explanation. It stands a disappointment compared to rivals.
The company generates very few genuine funds. Investor rewards must be paid burning existing cash or by borrowing money, which isn't sustainable in the long run. Unless business prospects improve greatly, stockholder compensation could be at risk. It still looks last-in-rank when measured against competitors.

Balance Sheet score: 4.8

Mr. Cooper Group Inc. intangible assets (like brands and goodwill) represent a very large portion of resources controlled, according to accounting books. There could be major difficulties in liquidating them if the company ever gets in financial distress. It happens to be weak when measured against peer companies.
The company has lower short-term resources than short-term obligations. Unless it's part of the business model, there might be liquidity concerns. It turns to be lacking compared to similar firms.
A significant part of resources controlled were provided for with financial debt. Creditors have almost as many claims on the company as shareholders. It remains mediocre against rival firms.
Most controlled resources might be only slowly turned into cash and equivalents, which is risky. It looks similar to rivals.
For every dollar of short-term obligations, the company has few cents of cash and short-term receivables. It's in a weak position compared to peer firms.
For every dollar of short-term obligations, the company has very few cents of cash and equivalents, which is bottom tier against similar enterprises.
Usually, sales are on somewhat more than three months credit. It still ranks last-in-rank when measured against peers.
Normally has no inventories. It comes up as impressive in relation to competitors.
On average, it takes higher than five months from the purchase to charging customers. It happens to be worse than most peers.
On average pays suppliers many months after the purchase. It ranks great when measured against industry peers.
The company charges its customers long before it must pay its suppliers, so the more it sales, the more free funds it gets. It's excellent in relation to similar companies.
Net interest expenses consume a minor portion of usual business earnings, and are largely bearable. It stands slightly better than rival firms.
Business earnings have usually been reasonable when measured against loans taken. Cutting back reinvesting in the business, it could take more than five years to repay the obligations with current profitability. It ranks similar to comparable enterprises.
Revenues are huge in relation to property, plant, and equipment required to operate. This metric is likely dependent on the industry the company operates in. Low property, plant, and equipment requirements, allows the company to keep more money to reward stockholders in the long run. It looks impressive in relation to similar firms.
Resource exploitation is low when yearly sales are considered, business volume must be significantly increased. This metric is normally tied to the industry where the firm belongs. It's still slightly worse than peer companies.

Valuation score: 6.3

Mr. Cooper Group Inc. looks very cheap in relation to profits and financial position. It happens to be encouraging in relation to competitors.
Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains a disappointment compared to peers.
In the past twelve months, the company consumed funds. Either it reinvested significantly in the business or genuine fund generation might be struggling, which stands worse than most similar companies.
The company usually consumes much more funds than can genuinely generate. Business needs are meet by borrowing money or consuming preexistent cash, which can only keep up until a certain limit. Unless the company is driving significant business growth, genuine profitability may be brought into question. It's still substantially worse when measured against industry firms.
In the past twelve months, the company has rewarded investors, considering both dividends and share on the pie of earnings. It came up lacking compared to peer ventures.
The company is largely indebted. It should focus on loan repayment before rewarding stockholders. It looks worse than most similar enterprises.
Considering the past twelve months, traditional Price-to-Earnings relation looks extremely cheap. Possible reasons are that the market might be betting current earnings will be very hard to sustain through time, or that the company has very high fund needs, a weak financial position, or that earnings aren't representative. If that isn't the case, the stock price could be extremely attractive. It ranks more than average in relation to peer companies.
Comparing the current stock price with the past twelve-months revenues gives a more than one-to-one relationship. This is an important metric to check its evolution through time, and to compare to industry peers. It looks lacking compared to rival firms.
The relation between the stock price and accounting book value might be more than reasonable. It's important both to check this metric through time and to compare it with rival companies. The company remains somewhat worse than peer firms.
In the past twelve months, the operating business earned great money when compared to the current stock price and financial position. It happens to be encouraging in relation to industry peers.
In an alternate metric of bang for the buck, the company has usually shown an extreme earnings power ability when measured against the current stock price and financial position. Further analysis is recommended, as the stock might currently be significantly undervalued. It's still lacking compared to peer companies.

Total score: 5.4

Company at a glance: Mr. Cooper Group Inc. (COOP)

Sector, industry: Financial Services, Mortgage Finance

Market Cap: 3.25 billions

Revenues TTM: 2.73 billions

Mr. Cooper Group Inc. provides servicing, origination, and transaction-based services related to single-family residences in the United States. The company operates through two segments: Servicing and Originations. The Servicing segment performs activities for underlying mortgages, including collecting and disbursing borrower payments, investor reporting, customer service, and modifying loans. The Originations segment originates residential mortgage loans through its direct-to-consumer channel, as well as originates and purchases loans from mortgage bankers and brokers. It 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. was incorporated in 2015 and is based in Coppell, Texas.