Mr Cooper Group (COOP) AI Stock Analysis

• Market Cap: $8.93B
• Dividend Yield: N/A
• Average Volume (3M): 923.86K
• Price to Earnings (P/E): 16.4
• Beta (1Y): 0.11
• Revenue Growth: 6.44%
• EPS Growth: -7.86%
• Country: US
• Employees: 7,900
• Sector: Financial
• Sector Strength: 74
• Industry: Financial - Mortgages
• EPS (TTM): 2.97
• Shares Outstanding: 63,985,390
• 10 Day Avg. Volume: 982,875
• 30 Day Avg. Volume: 923,860
• PEG Ratio: -0.12
• Price to Book (P/B): 0.71
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 1.34
• Enterprise Value/Market Cap: 1.51
• Enterprise Value/Revenue: 1.17
• Enterprise Value/Gross Profit: 9.06
• Enterprise Value/Ebitda: 3.87
• 1Y Price Target: $144.80
• Price Target Upside: 0.16% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 69 Neutral
• Price Target: $160.00 ▲(10.67%Upside)

The overall stock score reflects solid technical momentum and positive recent earnings call insights, including strategic mergers and acquisitions. However, ongoing financial challenges in revenue and cash flow generation, as well as valuation concerns, temper the outlook.

Positive Factors

Acquisitions

Rocket acquisition makes it uncontested heavyweight in servicing, resets bar for stock valuations connected to achieving scale.

Financial Performance

The COOP deal supports at least $500 million of expected synergies, including $100 million of revenue synergies from achieving a stronger recapture rate.

Valuation

With COOP shares currently trading at just 7.9x our 2025 operating EPS estimate of $13.50 versus a mortgage operating company median of 9.1x, shares are considered undervalued.

Negative Factors

Competitive Pressure

The combination could create a modest headwind for MBS investors given the lower refinancing costs expected to manifest from RKT having more meaningful scale.

Market Valuation

Downgrading COOP shares to Market Perform from Market Outperform as the shares are now reasonably fairly valued with limited price appreciation potential after the announcement of the acquisition.

Regulatory Concerns

The market is currently pricing in some level of skepticism regarding the deal’s eventual closing, possibly due to concerns from regulatory entities about RKT/COOP’s combined market dominance.

Mr Cooper Group Business Overview & Revenue Model

Company Description

Mr. Cooper Group Inc. (COOP) is a prominent player in the mortgage finance industry, primarily operating in the United States. The company offers a comprehensive suite of services, including mortgage servicing, origination, and transaction-based services. Its main sectors include residential mortgage servicing and mortgage origination, where it caters to a wide range of customers including homeowners, investors, and real estate professionals. The company is committed to providing innovative solutions and exceptional customer service, aiming to simplify homeownership for its clients.

How the Company Makes Money

Mr. Cooper Group generates revenue through several key streams. The primary source is its mortgage servicing operations, where the company earns fees for managing and administrating mortgage loans on behalf of clients. This involves collecting payments, managing escrow accounts, and handling customer service for borrowers. Another significant revenue stream is mortgage origination, where the company earns origination fees by issuing new home loans. Additionally, Mr. Cooper Group benefits from transaction-based services which include title insurance and real estate services. The company’s earnings are also influenced by partnerships with financial institutions and investors, which enhance its capacity to offer competitive mortgage products and services. Interest income from its mortgage servicing rights and other financial assets also contributes to its revenue.

Mr Cooper Group Financial Statement Overview

Summary

Mr Cooper Group shows a mixed financial performance with strong operational efficiency and equity position. However, challenges in revenue growth, declining net profit margin, and negative free cash flow are concerning and require strategic attention.

Income Statement

Mr Cooper Group has shown a mixed performance in its income statement. The TTM (Trailing-Twelve-Months) gross profit margin stands at 53.17%, which indicates a strong ability to convert revenue into profit. However, the TTM net profit margin is 23.75%, which is lower than previous years, showing a decline in net profitability. Revenue growth has been inconsistent, with a decrease in recent periods, highlighting potential challenges in revenue generation. The EBIT margin is healthy at 33.81%, and EBITDA margin is 35.29%, reflecting operational efficiency, though both have declined from prior periods.

Balance Sheet

The balance sheet reflects a solid equity position with a debt-to-equity ratio of 0 in the TTM period, indicating no reliance on debt. Return on equity is strong at 11.78%, showcasing the company's ability to generate returns for shareholders. The equity ratio of 26.51% suggests a stable capital structure with a significant portion of assets financed by equity.

Cash Flow

Cash flow analysis reveals challenges in generating positive free cash flow, with a TTM free cash flow of -$1,734 million. The operating cash flow to net income ratio is negative, suggesting operational cash flow issues. Free cash flow to net income ratio is also negative, indicating difficulties in converting earnings into free cash flow. The company must address these cash flow challenges to ensure sustainable financial health.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
3.04B	3.02B	2.32B	2.46B	3.32B	3.07B
	Gross Profit
1.49B	1.53B	1.15B	1.43B	1.80B	1.30B
	EBIT
796.00M	920.00M	661.00M	923.00M	1.47B	534.00M
	EBITDA
850.00M	964.00M	699.00M	1.06B	1.47B	610.00M
	Net Income Common Stockholders
576.00M	669.00M	500.00M	923.00M	1.45B	305.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
784.00M	753.00M	571.00M	527.00M	895.00M	695.00M
	Total Assets
18.45B	18.94B	14.20B	12.78B	14.20B	24.16B
	Total Debt
11.21B	11.39B	7.45B	5.56B	7.67B	13.30B
	Net Debt
10.43B	10.63B	6.88B	5.03B	6.77B	12.61B
	Total Liabilities
13.56B	14.13B	9.91B	8.72B	10.84B	21.66B
	Stockholders Equity
4.89B	4.81B	4.28B	4.06B	3.37B	2.50B
Cash Flow		Free Cash Flow
-1.88B	-762.00M	-972.00M	2.15B	1.67B	144.00M
	Operating Cash Flow
-525.00M	-724.00M	896.00M	3.77B	2.63B	331.00M
	Investing Cash Flow
-2.01B	-2.70B	-1.84B	-1.32B	1.19B	-134.00M
	Financing Cash Flow
2.75B	3.65B	978.00M	-2.78B	-3.70B	104.00M

Mr Cooper Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 144.57
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For COOP, the sentiment is Positive. The current price of 144.57 is above the 20-day moving average (MA) of 134.57, above the 50-day MA of 124.74, and above the 200-day MA of 105.79, indicating a bullish trend. The MACD of 5.27 indicates Negative momentum. The RSI at 64.41 is Neutral, neither overbought nor oversold. The STOCH value of 74.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for COOP.

Mr Cooper Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
THG	79 Outperform	$6.00B	13.91	15.74%	2.16%	3.09%	168.29%
PB	74 Outperform	$6.45B	12.93	6.83%	3.43%	9.02%	20.88%
SNV	74 Outperform	$6.66B	13.45	10.63%	3.25%	-1.56%	22.50%
COOP	69 Neutral	$8.93B	16.42	12.39%	―	6.44%	-7.86%
VOYA	67 Neutral	$6.41B	12.55	13.40%	2.71%	5.34%	-25.43%
FAF	66 Neutral	$5.93B	38.06	3.23%	3.74%	0.96%	-27.04%
Sector *	64 Neutral	$12.77B	9.78	7.84%	78.83%	12.06%	-7.99%

Mr Cooper Group Corporate Events

Mr Cooper Group Advances Merger with Rocket Companies

On March 31, 2025, Mr. Cooper Group Inc. entered into a Merger Agreement with Rocket Companies, Inc., involving a series of mergers that will result in Mr. Cooper becoming a wholly-owned subsidiary of Rocket. The expiration of the HSR Act waiting period on June 4, 2025, marked a significant step towards the completion of the mergers, which are expected to close in the fourth quarter of 2025, pending other regulatory approvals and stockholder consent.

The most recent analyst rating on (COOP) stock is a Hold with a $143.00 price target. To see the full list of analyst forecasts on Mr Cooper Group stock, see the COOP Stock Forecast page.

Mr Cooper Group Approves Key Proposals at Annual Meeting

On May 22, 2025, Mr. Cooper Group Inc. held its 2025 Annual Meeting of Stockholders, where several key proposals were approved. Stockholders elected seven directors for the upcoming term and approved advisory votes on executive compensation, deciding to hold these votes annually. Additionally, the appointment of Ernst & Young LLP as the independent registered public accounting firm for 2025 was ratified.

The most recent analyst rating on (COOP) stock is a Hold with a $143.00 price target. To see the full list of analyst forecasts on Mr Cooper Group stock, see the COOP Stock Forecast page.

Mr Cooper Group Merges with Rocket Companies

On March 31, 2025, Rocket Companies, Inc. entered into a merger agreement with Mr. Cooper Group Inc., involving the merger of Maverick Merger Sub with Mr. Cooper, making Mr. Cooper a wholly owned subsidiary of Rocket. The merger, valued at $9.4 billion, involves an exchange of Mr. Cooper shares for Rocket’s Class A common stock and includes a special cash dividend for Mr. Cooper’s stockholders. The merger is subject to customary closing conditions, regulatory approvals, and stockholder votes, with provisions for termination under specified circumstances. Additionally, Mr. Cooper adopted a Change in Control Executive Severance Plan for its executive officers, excluding the CEO, providing severance benefits in case of employment termination following a change in control.

Rocket Companies to Acquire Mr Cooper Group

On March 31, 2025, Mr. Cooper Group Inc. and Rocket Companies, Inc. announced a definitive agreement for Rocket to acquire all outstanding shares of Mr. Cooper in an all-stock transaction. This merger is expected to accelerate Rocket’s mission to assist homeowners and could significantly impact the operations and market positioning of both companies. The transaction is subject to various conditions, including stockholder approval, and carries potential risks such as management distractions and legal proceedings.