Mr Cooper Group (COOP) AI Stock Analysis

• Market Cap: $12.21B
• Dividend Yield: N/A
• Average Volume (3M): 1.44M
• Price to Earnings (P/E): 21.3
• Beta (1Y): >-0.01
• Revenue Growth: 2.27%
• EPS Growth: -17.46%
• Country: US
• Employees: 7,900
• Sector: Financial
• Sector Strength: 67
• Industry: Financial - Mortgages
• EPS (TTM): 2.95
• Shares Outstanding: 63,993,270
• 10 Day Avg. Volume: 1,064,324
• 30 Day Avg. Volume: 1,439,482
• PEG Ratio: 0.23
• Price to Book (P/B): 1.28
• Price to Sales (P/S): 2.77
• P/FCF Ratio: -8.10
• Enterprise Value/Market Cap: 1.71
• Enterprise Value/Revenue: 9.15
• Enterprise Value/Gross Profit: 12.46
• Enterprise Value/Ebitda: 24.95
• 1Y Price Target: $156.60
• Price Target Upside: -15.75% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 7

• Rating: 69 Neutral
• Price Target: $191.00 ▲(2.75% Upside)

Mr Cooper Group's stock score is primarily supported by its strong operational performance and positive technical indicators. Despite financial challenges in revenue growth and cash flow, the company's strategic initiatives and positive earnings call outlook drive a moderately positive score. The valuation remains fair, with the absence of a dividend yield being a minor drawback.

Positive Factors

Market Position

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

Synergies

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

Negative Factors

Market Skepticism

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.

Valuation Concerns

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.

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 demonstrates strong operational efficiency with a high gross profit margin and solid equity position. However, challenges in revenue growth, declining net profit margin, and significant cash flow issues weigh down the financial performance.

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	2.29B	2.23B	1.79B	2.46B	3.19B	2.41B
Gross Profit	1.68B	1.53B	1.79B	1.43B	1.80B	1.30B
EBITDA	839.00M	989.00M	699.00M	1.06B	1.47B	1.05B
Net Income	570.00M	669.00M	500.00M	923.00M	1.45B	305.00M
Balance Sheet
Total Assets	18.50B	18.94B	14.20B	12.78B	14.20B	24.16B
Cash, Cash Equivalents and Short-Term Investments	783.00M	753.00M	571.00M	527.00M	895.00M	695.00M
Total Debt	11.06B	11.39B	7.45B	5.56B	7.67B	13.30B
Total Liabilities	13.40B	14.13B	9.91B	8.72B	10.84B	21.66B
Stockholders Equity	5.10B	4.81B	4.28B	4.06B	3.37B	2.50B
Cash Flow
Free Cash Flow	-953.00M	-762.00M	-972.00M	2.15B	1.67B	144.00M
Operating Cash Flow	-361.00M	-724.00M	896.00M	3.77B	2.63B	331.00M
Investing Cash Flow	-1.45B	-2.70B	-1.84B	-1.32B	1.19B	-134.00M
Financing Cash Flow	1.96B	3.65B	978.00M	-2.78B	-3.70B	104.00M

Mr Cooper Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 185.88
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 185.88 is above the 20-day moving average (MA) of 162.34, above the 50-day MA of 150.51, and above the 200-day MA of 116.85, indicating a bullish trend. The MACD of 9.85 indicates Negative momentum. The RSI at 69.26 is Neutral, neither overbought nor oversold. The STOCH value of 90.93 is Negative, 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
COOP	69 Neutral	$12.21B	21.25	11.76%	―	2.27%	-17.46%
Sector *	67 Neutral	$17.02B	11.60	9.79%	3.95%	10.61%	2.06%
PFSI	64 Neutral	$5.13B	13.76	10.05%	1.22%	20.77%	96.22%
RKT	58 Neutral	$37.94B	68.51	>-0.01%	―	21.52%	-103.65%
GHLD	57 Neutral	$1.24B	28.61	3.71%	2.51%	42.92%	64.72%
LDI	48 Neutral	$620.23M	―	-29.48%	―	3.76%	16.19%
UWMC	48 Neutral	$6.75B	37.74	8.18%	8.89%	9.19%	-171.38%

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.