Mr. Cooper Intrinsic Stock Value – Is Mr. Cooper Group a Potential Short Candidate? Analyzing Their Financial Position
November 21, 2023
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The Mr. Cooper ($NASDAQ:COOP) Group is a major financial services company that specializes in mortgage loan services, home equity loans, and home loan refinancing. The company is publicly traded on the New York Stock Exchange, and its stock has been performing well ever since its initial public offering. Recently, there has been a great deal of speculation about the viability of short selling Mr. Cooper stock.
First, it is important to understand what short selling is. Short selling involves selling a security that you don’t already own, and then buying it back at a lower price. This is done in the hope that the stock will decline in value and you will be able to make a profit from the difference. It is important to note, however, that short selling carries more risk than traditional investing. When analyzing whether Mr. Cooper is a potential short candidate, there are several factors to consider. First, investors must take into account the company’s financial position. Analyzing the company’s balance sheet, cash flow statements, and income statements can give investors an idea of how healthy the company is.
Additionally, investors should consider the stock’s historical performance and any new developments that may have occurred recently. Overall, short selling Mr. Cooper Group’s stock requires careful analysis and should only be done with caution. Investors should consider all of the company’s financials and assess any recent developments that could affect the stock’s performance before deciding whether it is a suitable candidate for short selling.
Market Price
On Monday, MR. COOPER stock opened at $58.6 and closed at $59.5, up by an impressive 2.0% from its previous closing price of 58.4. This increase in price indicates that investors have confidence in the company’s financial position, which is a positive sign for potential investors. This includes examining the company’s revenue and expenses, capital structure, liquidity, and other essential factors. It is also important to compare the company’s financial position to that of its competitors to determine if there are any potential weaknesses that could make it an attractive short candidate.
By analyzing MR. COOPER Group’s financial position, investors can gain a better understanding of the company and determine whether or not it is a suitable short candidate. While the recent performance of its stock indicates that investors have confidence in the company, further analysis may be necessary to determine its true potential as a short candidate. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Mr. Cooper. More…
| Total Revenues | Net Income | Net Margin |
| – | 455 | – |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Mr. Cooper. More…
| Operations | Investing | Financing |
| 1.4k | -1.42k | 54 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Mr. Cooper. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 13.43k | 9.12k | – |
Key Ratios Snapshot
Some of the financial key ratios for Mr. Cooper are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 1.4% | – | – |
| FCF Margin | ROE | ROA |
| – | – | – |
Analysis – Mr. Cooper Intrinsic Stock Value
At GoodWhale, we conducted a thorough analysis of Mr. Cooper‘s financials and determined that its intrinsic value is around $36.0, as indicated by our proprietary Valuation Line. Currently, the stock is trading much higher at $59.5, implying an overvaluation of 65.5%. This indicates that investors may be overestimating the potential of the company’s future performance. We believe that investors should be mindful of this discrepancy when considering whether to invest in Mr. Cooper. More…
Peers
The company is engaged in providing mortgage loan servicing and origination services. It offers a range of services, including home retention, default servicing, loan modification, and foreclosure prevention services. The company also provides conventional, government-sponsored, and jumbo loan products. Mr. Cooper Group Inc has operations in the United States, India, and the United Kingdom. The company was formerly known as NationStar Mortgage Holdings Inc and changed its name to Mr. Cooper Group Inc in August 2018. Mr. Cooper Group Inc’s competitors include Australian Finance Group Ltd, Home Point Capital Inc, and India Home Loan Ltd. These companies are also engaged in providing mortgage loan servicing and origination services.
– Australian Finance Group Ltd ($ASX:AFG)
The company’s market capitalization is $498.63 million as of April 2021. The company operates in the financial services industry in Australia and New Zealand and provides a range of services, including mortgage lending, financial planning, and insurance.
– Home Point Capital Inc ($NASDAQ:HMPT)
Home Point Capital Inc is a mortgage lender that offers a variety of home loan products to borrowers across the United States. The company has a market capitalization of $242.17 million as of 2022. Home Point Capital Inc is a publicly traded company on the New York Stock Exchange (NYSE: HMPT).
– India Home Loan Ltd ($BSE:530979)
With a market cap of 460.59M as of 2022, India Home Loan Ltd is a company that provides home loans to customers in India. The company offers a variety of home loan products, including fixed-rate loans, adjustable-rate loans, and home equity loans. India Home Loan Ltd also provides home loan servicing and home loan refinancing services.
Summary
MR. COOPER Group is a publicly traded mortgage company and servicer. The company has an unsustainable debt burden and an inability to generate cash flow relative to its debt levels, suggesting that its stock price may soon decline. Additionally, the company’s high current ratio could be an indication of over-leveraging, and its high financial leverage ratio highlights the potential risk associated with investing in MR. COOPER. Overall, the financial analysis of MR. COOPER suggests that it is a potentially risky investment and investors should conduct further research before deciding to invest.
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