Mr Cooper Group (COOP) AI Stock Analysis

• Market Cap: $13.70B
• Dividend Yield: N/A
• Average Volume (3M): 826.25K
• Price to Earnings (P/E): 24.5
• Beta (1Y): -0.03
• Revenue Growth: 2.27%
• EPS Growth: -17.46%
• Country: US
• Employees: 7,900
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Mortgages
• EPS (TTM): 2.95
• Shares Outstanding: 63,993,270
• 10 Day Avg. Volume: 890,803
• 30 Day Avg. Volume: 826,252
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.53
• Enterprise Value/Revenue: 9.15
• Enterprise Value/Gross Profit: 12.46
• Enterprise Value/Ebitda: 24.20
• 1Y Price Target: $163.33
• Price Target Upside: -23.20% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 8

• Rating: 65 Neutral
• Price Target: $197.00 ▼(-7.37% Downside)

Mr Cooper Group's overall stock score reflects a balance of strong technical momentum and positive earnings call highlights against financial performance concerns and legal challenges in the merger process. The stock's valuation is moderate, but liquidity issues and high leverage remain significant risks.

Positive Factors

Servicing Income Growth

The growth in servicing income indicates a strong market position and effective management in the mortgage servicing sector, providing a stable revenue stream.

High Capital Ratio and Liquidity

A high capital ratio and strong liquidity position enhance financial stability, allowing the company to withstand market fluctuations and invest in growth opportunities.

Launch of MSR Fund

The launch of the MSR fund diversifies revenue streams and leverages the company's expertise in mortgage servicing, potentially attracting more institutional investors.

Negative Factors

High Leverage

High leverage can strain financial flexibility and increase risk, especially in volatile markets, potentially impacting long-term financial health.

Negative Cash Flow Trends

Negative cash flow trends indicate liquidity challenges, which could hinder the company's ability to invest in growth and meet financial obligations.

Declining Revenue

Declining revenue reflects potential market challenges and could pressure profitability, necessitating strategic adjustments to sustain growth.

Mr Cooper Group Business Overview & Revenue Model

Company Description

Mr. Cooper Group Inc. is a leading technology-driven mortgage services company based in the United States. The company operates primarily in the mortgage servicing and originations sectors, offering a range of products and services including loan servicing, mortgage origination, and refinancing solutions. Mr. Cooper is focused on providing innovative solutions to enhance the customer experience in homeownership, leveraging technology to streamline processes and improve efficiency.

How the Company Makes Money

Mr. Cooper Group generates revenue through several key streams within the mortgage industry. The primary source of income comes from mortgage servicing fees, which are collected for managing mortgage loans on behalf of investors. Additionally, the company earns money through mortgage origination fees when new loans are created. Other significant revenue sources include gains from the sale of loans on the secondary market, as well as ancillary services such as escrow and insurance products. The company also benefits from strategic partnerships with various financial institutions and technology providers, enhancing its service offerings and expanding its customer base.

Mr Cooper Group Financial Statement Overview

Summary

Mr Cooper Group's financial performance is mixed. While profitability margins are strong, declining revenue and high leverage pose risks. The negative cash flow trends are particularly concerning, suggesting liquidity issues. The company must focus on improving revenue growth and managing debt to enhance financial health.

Income Statement

The income statement shows a mixed performance. Gross profit margin has improved to 73.4% in TTM, indicating strong cost management. However, revenue has declined by 6.7% in the TTM period, reflecting potential market challenges. Net profit margin remains healthy at 24.9%, but the declining EBIT and EBITDA margins suggest pressure on operational efficiency.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 2.17 in TTM, indicating significant leverage. While the return on equity is moderate at 11.7%, the equity ratio is relatively low, suggesting potential financial risk. The company needs to manage its debt levels to improve financial stability.

Cash Flow

Cash flow analysis shows concerning trends, with negative operating and free cash flows in TTM. The free cash flow to net income ratio is high at 10.6, indicating reliance on non-operational sources for cash. The negative growth in free cash flow highlights liquidity challenges that need addressing.

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	865.00M	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	8.33B
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	-668.00M	-762.00M	-972.00M	2.15B	1.67B	144.00M
Operating Cash Flow	-63.00M	-724.00M	896.00M	3.77B	2.63B	331.00M
Investing Cash Flow	-1.57B	-2.70B	-1.84B	-1.32B	1.19B	-134.00M
Financing Cash Flow	1.78B	3.65B	978.00M	-2.78B	-3.70B	104.00M

Mr Cooper Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 212.68
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 212.68 is above the 20-day moving average (MA) of 208.78, above the 50-day MA of 188.99, and above the 200-day MA of 134.36, indicating a bullish trend. The MACD of 8.08 indicates Positive momentum. The RSI at 58.72 is Neutral, neither overbought nor oversold. The STOCH value of 15.77 is Positive, 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	65 Neutral	$13.70B	24.47	11.76%	―	2.27%	-17.46%
PFSI	64 Neutral	6.38B	17.07	8.13%	0.97%	20.77%	96.22%
RKT	61 Neutral	41.23B	-402.26	>-0.01%	―	21.52%	-103.65%
LDI	58 Neutral	1.08B	-9.64	-15.29%	―	6.60%	44.77%
GHLD	58 Neutral	1.24B	51.13	2.12%	―	34.62%	-7.94%
UWMC	53 Neutral	10.30B	-97.13	6.73%	6.21%	12.27%	-21.43%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Mr Cooper Group Corporate Events

Mr Cooper Group Approves Merger with Rocket Companies

On September 3, 2025, Mr. Cooper Group Inc. held a special meeting where stockholders approved the merger with Rocket Companies, Inc. Under the merger terms, Mr. Cooper stockholders will receive 11 shares of Rocket Class A common stock for each share of Mr. Cooper common stock. The merger-related compensation proposal was also approved, although it is not a binding condition for the merger’s completion. The acquisition’s completion remains subject to the satisfaction or waiver of remaining closing conditions.

Mr Cooper Faces Legal Challenges in Merger Process

On March 31, 2025, Mr. Cooper Group Inc. entered into a merger agreement with Rocket Companies, Inc., which involves Mr. Cooper becoming a wholly owned subsidiary of Rocket. This merger is subject to shareholder approval, with a special meeting scheduled for September 3, 2025. However, the merger process has faced legal challenges, as three lawsuits have been filed by Mr. Cooper’s stockholders alleging misstatements and omissions in the proxy statement related to the merger. Despite these allegations, Mr. Cooper plans to supplement the proxy statement to address these claims, although the company maintains that the original disclosures were compliant with applicable laws.

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.