Mr Cooper Group (COOP) AI Stock Analysis

• Market Cap: $9.63B
• Dividend Yield: N/A
• Average Volume (3M): 1.31M
• Price to Earnings (P/E): 16.3
• Beta (1Y): 0.08
• Revenue Growth: 6.44%
• EPS Growth: -7.86%
• Country: US
• Employees: 7,900
• Sector: Financial
• Sector Strength: 81
• Industry: Financial - Mortgages
• EPS (TTM): 2.97
• Shares Outstanding: 63,985,390
• 10 Day Avg. Volume: 990,251
• 30 Day Avg. Volume: 1,313,964
• PEG Ratio: -1.16
• Price to Book (P/B): 1.87
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -4.86
• Enterprise Value/Market Cap: 2.03
• Enterprise Value/Revenue: 1.69
• Enterprise Value/Gross Profit: 13.13
• Enterprise Value/Ebitda: 5.61
• 1Y Price Target: $153.25
• Price Target Upside: 6.95% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5

• Rating: 69 Neutral
• Price Target: $160.00 ▲(11.66%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

Financial Performance

Mr. Cooper Group Inc. reported in-line 4Q24 earnings highlighted by solid servicing income and excellent correspondent origination growth.

Revenue Synergies

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

Stock Valuation

The price target is increased to $143 from $125 to align with the terms in the Rocket / Mr. Cooper transaction.

Negative Factors

Earnings Performance

Mortgage origination operating income of $47M came in just below estimates and at the lower end of the company’s range, and well below the $69M reported in the previous quarter.

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. 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.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.02B	2.32B	2.46B	3.32B	3.07B
Gross Profit	1.53B	1.15B	1.43B	1.80B	1.30B
EBITDA	964.00M	699.00M	1.06B	1.47B	610.00M
Net Income	669.00M	500.00M	923.00M	1.45B	305.00M
Balance Sheet
Total Assets	18.94B	14.20B	12.78B	14.20B	24.16B
Cash, Cash Equivalents and Short-Term Investments	753.00M	571.00M	527.00M	895.00M	695.00M
Total Debt	11.39B	7.45B	5.56B	7.67B	13.30B
Total Liabilities	14.13B	9.91B	8.72B	10.84B	21.66B
Stockholders Equity	4.81B	4.28B	4.06B	3.37B	2.50B
Cash Flow
Free Cash Flow	-762.00M	-972.00M	2.15B	1.67B	144.00M
Operating Cash Flow	-724.00M	896.00M	3.77B	2.63B	331.00M
Investing Cash Flow	-2.70B	-1.84B	-1.32B	1.19B	-134.00M
Financing Cash Flow	3.65B	978.00M	-2.78B	-3.70B	104.00M

Mr Cooper Group Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 143.29
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For COOP, the sentiment is Neutral. The current price of 143.29 is below the 20-day moving average (MA) of 148.60, above the 50-day MA of 136.81, and above the 200-day MA of 110.73, indicating a neutral trend. The MACD of 2.87 indicates Positive momentum. The RSI at 48.48 is Neutral, neither overbought nor oversold. The STOCH value of 32.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for COOP.

Mr Cooper Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
THG	76 Outperform	$5.97B	13.84	15.74%	2.17%	3.09%	168.29%
PB	74 Outperform	$7.10B	14.25	6.83%	3.11%	9.02%	20.88%
SNV	73 Outperform	$7.60B	15.34	10.63%	2.85%	-1.56%	22.50%
VOYA	71 Outperform	$7.07B	13.85	13.40%	2.45%	5.34%	-25.43%
COOP	69 Neutral	$9.63B	16.27	12.39%	―	6.44%	-7.86%
FAF	68 Neutral	$5.80B	37.18	3.23%	3.83%	0.96%	-27.04%
Sector *	64 Neutral	$6.54B	11.08	7.19%	5.08%	23.85%	5.18%

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.