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Mr. Cooper (COOP)
:COOP
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Mr Cooper Group
(COOP)
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Rating:65Neutral
Price Target:
$197.00
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.
Mr Cooper Group (COOP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
N/A
Dividend YieldN/A
Average Volume (3M)N/A
Price to Earnings (P/E)―
Beta (1Y)N/A
Revenue Growth2.27%
EPS Growth-17.46%
CountryUS
EmployeesN/A
SectorN/A
Sector StrengthN/A
IndustryN/A
Share Statistics
EPS (TTM)N/A
Shares OutstandingN/A
10 Day Avg. VolumeN/A
30 Day Avg. VolumeN/A
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Mr Cooper Group Business Overview & Revenue Model
Company DescriptionMr. 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 MoneyMr. 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 Earnings Call Summary
Earnings Call Date:Jul 23, 2025
(Q2-2025)
| Next Earnings Date:Oct 22, 2025
Earnings Call Sentiment Positive
The earnings call presented a generally positive outlook with strong operating metrics, growth in servicing income, and strategic achievements such as launching a new MSR fund. However, there were some challenges, including a paused stock repurchase program and increased delinquencies in certain sectors.Q2-2025 Updates
Positive Updates
Strong Operating ROTCE
Operating ROTCE was 17.2%, up from 16.8% last quarter, within the guidance range of 16% to 20%.
High Capital Ratio and Liquidity
The company reported a strong capital ratio of 26.6% and robust liquidity of $3.8 billion.
Servicing Income Growth
Servicing generated $332 million in pretax income, up 15% year-over-year.
Home Equity Loan Momentum
Two securitizations completed, with favorable investor feedback, and a massive multiyear opportunity with home equity loans.
Launch of MSR Fund
Successfully launched a maiden MSR fund with $200 million in initial commitments.
Recognition as a Great Place to Work
The company was recognized by The Great Places to Work foundation as one of the best places to work in Texas.
New Client Wins
A new client win is expected to bring a sizable portfolio of about $40 billion in loans by year-end.
Negative Updates
Paused Stock Repurchase Program
The stock repurchase program was paused due to the pending merger with Rocket.
Decreasing UPB in Subservicing
Subservicing saw a slight decline in UPB due to a single client pursuing a different strategy, resulting in deboarding $12 billion in loans.
Challenges in FHA Sector
FHA delinquencies increased, though still below peers, and FHA loans were limited to 15% of the MSR portfolio.
Impact of Student Loan Delinquencies
Approximately 16% of customers have student loans, with elevated student loan delinquencies observed.
Company Guidance
During the second quarter of 2025, Mr. Cooper Group demonstrated strong financial performance, with an operating return on tangible common equity (ROTCE) of 17.2%, up from 16.8% in the previous quarter, and within the guidance range of 16% to 20%. The company's balance sheet remained robust with a capital ratio of 26.6% and liquidity of $3.8 billion. Servicing income rose by 15% year-over-year, reaching $332 million, with the servicing portfolio holding steady at around $1.5 trillion. Originations generated $64 million in pretax income, with $9.4 billion in fundings and a significant focus on home equity loans, where the company completed two securitizations. Net income for the quarter was $198 million, including $269 million in pretax operating income. The company also initiated its maiden MSR fund with $200 million in initial commitments, while maintaining a strong position in the correspondent channel as a top 5 player. With a focus on innovation and efficiency, Mr. Cooper continues to leverage AI and has received recognition as one of the best places to work in Texas. The company anticipates continued consistent performance into the third quarter, despite challenges such as high mortgage rates and affordability issues in the housing market.Mr Cooper Group Financial Statement Overview
Summary
Income Statement
65
Positive
Balance Sheet
55
Neutral
Cash Flow
40
Negative
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Mr Cooper Group Technical Analysis
Positive
―
Price Trends
196.02
Positive
168.78
Positive
137.71
Positive
Market Momentum
4.19
Positive
55.59
Neutral
48.69
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 undefined is equal to the 20-day moving average (MA) of 213.37, equal to the 50-day MA of 196.02, and equal to the 200-day MA of 137.71, indicating a neutral trend. The MACD of 4.19 indicates Positive momentum. The RSI at 55.59 is Neutral, neither overbought nor oversold. The STOCH value of 48.69 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
UnderperformOutperform
Sector (―)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
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* Sector Average
Performance Comparison
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.