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Cooper-Standard Holdings (CPS)
NYSE:CPS
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Cooper-Standard Holdings
(NYSE:CPS)
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Rating:56Neutral
Price Target:
$31.00
▼(-10.04% Downside)
Cooper-Standard Holdings' overall stock score reflects a mixed financial performance with improved revenue but low profitability and a weak balance sheet. Technical indicators suggest bearish momentum, while the valuation is fair. The earnings call provided a balanced view with operational improvements but highlighted significant challenges ahead.
Positive Factors
Revenue Growth
The substantial revenue growth indicates strong demand for Cooper-Standard's products, enhancing its market position and supporting long-term business sustainability.
Cost Optimization
Effective cost optimization strategies improve profitability and operational efficiency, providing a competitive edge in the automotive industry.
Strategic Alignment with Electric Vehicles
Focusing on electric vehicles positions Cooper-Standard to capitalize on the growing shift towards sustainable transportation, ensuring future relevance.
Negative Factors
High Leverage
High leverage and negative equity indicate financial instability, which could limit the company's ability to invest in growth opportunities.
Low Profitability
Persistently low profitability can hinder reinvestment in the business and affect long-term financial health, challenging sustained growth.
Fourth Quarter Challenges
Supply chain disruptions pose risks to revenue and operational efficiency, potentially impacting financial performance in the near term.
Cooper-Standard Holdings (CPS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$607.77M
Dividend YieldN/A
Average Volume (3M)117.55K
Price to Earnings (P/E)19.0
Beta (1Y)1.49
Revenue Growth-0.53%
EPS GrowthN/A
CountryUS
Employees22,000
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)-0.24
Shares Outstanding17,637,009
10 Day Avg. Volume129,181
30 Day Avg. Volume117,546
Financial Highlights & Ratios
PEG Ratio0.05
Price to Book (P/B)-1.89
Price to Sales (P/S)0.09
P/FCF Ratio9.21
Enterprise Value/Market Cap2.78
Enterprise Value/Revenue0.62
Enterprise Value/Gross Profit4.98
Enterprise Value/Ebitda8.82
Forecast
1Y Price Target
$39.00Price Target Upside13.17% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)2.51
Revenue Forecast (FY)$2.89B
Cooper-Standard Holdings Business Overview & Revenue Model
Company DescriptionCooper-Standard Holdings Inc., through its subsidiary, Cooper-Standard Automotive Inc., designs, manufactures, and sells sealing, fuel and brake delivery, and fluid transfer systems. The company's sealing systems include obstacle detection sensor systems, dynamic seals, variable extrusion systems, static seals, specialty sealing products, encapsulated glasses, stainless steel trims, FlushSeal systems, and textured surfaces with cloth appearance. Its fuel and brake delivery systems comprise chassis and tank fuel lines and bundles, direct injection and port fuel rails, metallic brake lines and bundles, tube coatings, quick connects, low oligomer multi-layer convoluted tubes, and brake jounce lines. The company's fluid transfer systems consist of heater/coolant hoses, turbo charger hoses, quick connects, charged air cooler ducts/assemblies, DPF and SCR emission lines, secondary air hoses, degas tanks, brake and clutch hoses, air intake and charge systems, transmission oil cooling hoses, and multilayer tubing for glycol thermal management. Its products are primarily used in passenger vehicles and light trucks that are manufactured by automotive original equipment manufacturers and replacement markets. The company operates in the United States, Mexico, China, Poland, Canada, Germany, France, and internationally. Cooper-Standard Holdings Inc. was founded in 1960 and is headquartered in Northville, Michigan.
How the Company Makes MoneyCooper-Standard generates revenue primarily through the sale of automotive components and systems, which are supplied to original equipment manufacturers (OEMs) in the automotive industry. Key revenue streams include sealing systems, which are crucial for preventing leaks and enhancing vehicle efficiency, and fuel and brake delivery systems necessary for vehicle operation and safety. The company also benefits from long-term contracts with major automotive players, providing a stable income. Additionally, Cooper-Standard engages in partnerships and collaborations with automotive manufacturers to develop innovative solutions, further solidifying its market position and driving sales growth.
Cooper-Standard Holdings Earnings Call Summary
Earnings Call Date:Oct 30, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 12, 2026
Earnings Call Sentiment Neutral
The earnings call reflected a mix of positive operational performance, cost optimizations, and strategic advancements with electric vehicles. However, there were also significant challenges, including a net loss, upcoming fourth-quarter disruptions, and increased costs. The overall sentiment is balanced with both notable achievements and challenges.Q3-2025 Updates
Positive Updates
Operational Excellence
99% of customer scorecards for quality and service were green. 97% of new program launches also received green scorecards. Safety performance was excellent with a total incident rate of 0.28, well below the benchmark of 0.47.
Cost Optimization and Margin Improvement
Manufacturing and purchasing teams delivered $18 million in savings, leading to a 140 basis point improvement in gross margin compared to last year.
Net New Business Awards
The company received $96 million in net new business awards in Q3, with a total of $229 million for the first 9 months of 2025.
Adjusted EBITDA Growth
Adjusted EBITDA increased by 15.6% to $53.3 million compared to the previous year.
Positive Cash Flow and Liquidity
Net cash provided by operating activities was $39 million in Q3, with a free cash flow of $27 million for the quarter. Total liquidity stood at approximately $314 million.
Advancements in Margin Expansion
Gross profit margin increased by 170 basis points for the first 9 months, and adjusted EBITDA margin improved by 230 basis points compared to last year.
Strategic Alignment with Electric Vehicles
83% of new business awards were related to battery electric or hybrid vehicle platforms.
Negative Updates
Net Loss Reduction
Reported a net loss of $7.6 million in Q3, although this was an improvement from the $11.1 million loss in the previous year.
Fourth Quarter Challenges
Expected significant impact in Q4 due to aluminum supply chain disruptions affecting the largest customer.
Increased Costs and Expenses
Higher wages and general inflation added $6 million in costs, and SGA&E expenses increased by $6 million due to stock price appreciation.
Company Guidance
During the Cooper-Standard Third Quarter 2025 Earnings Conference Call, the company provided several key financial metrics and operational highlights. The company reported third-quarter sales of $695.5 million, marking a 1.5% increase compared to the same period in 2024, driven by favorable foreign exchange and volume mix. Gross margin improved by 140 basis points to 12.5% of sales, while adjusted EBITDA rose by 15.6% to $53.3 million from the previous year. Despite a net loss of $7.6 million, the adjusted net loss was reduced to $4.4 million or $0.24 per share, compared to a $12 million adjusted net loss in the third quarter of 2024. The company maintained disciplined capital expenditures at $11.2 million, representing 1.6% of sales. Cooper-Standard ended the quarter with a cash balance of $148 million and total liquidity of approximately $314 million. They also achieved $18 million in cost savings from lean initiatives and other programs and secured $96 million in net new business awards during the quarter. Despite experiencing market headwinds and production disruptions, the company remains optimistic about its strategic plans, expecting to maintain positive free cash flow for the full year and improve its financial position with future refinancing efforts.Cooper-Standard Holdings Financial Statement Overview
Summary
Cooper-Standard Holdings shows mixed financial performance. Revenue and operational efficiency have improved, but profitability remains low with a net profit margin of 1.20%. The balance sheet is weakened by high leverage and negative equity, indicating financial instability. Cash flow shows signs of recovery, but historical volatility poses risks.Income Statement
Cooper-Standard Holdings has shown a significant improvement in its revenue growth rate, with a 37.3% increase in TTM compared to the previous period. The gross profit margin has improved to 12.44% in TTM from 11.09% in the previous year, indicating better cost management. However, the net profit margin remains low at 1.20%, and the EBIT margin is modest at 1.66%, suggesting limited profitability. The EBITDA margin has improved to 6.04%, reflecting better operational efficiency.Balance Sheet
The company's balance sheet shows a concerning negative stockholders' equity, leading to a high and negative debt-to-equity ratio of -11.20 in TTM. This indicates financial instability and high leverage. The return on equity is also negative, reflecting losses. The equity ratio is not calculable due to negative equity, highlighting potential financial risks.Cash Flow
The cash flow statement shows a positive trend in free cash flow growth, with a 46.17% increase in TTM. The operating cash flow to net income ratio is 0.12, indicating that operating cash flow covers net income, albeit modestly. The free cash flow to net income ratio is 0.42, suggesting some ability to generate cash relative to net income, but overall cash flow remains a concern due to past negative figures.| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.73B | 2.73B | 2.82B | 2.53B | 2.33B | 2.38B |
| Gross Profit | 339.39M | 302.92M | 290.78M | 129.79M | 87.23M | 147.55M |
| EBITDA | 191.53M | 117.73M | 45.63M | 490.00K | -77.93M | -116.83M |
| Net Income | 32.72M | -78.75M | -201.99M | -215.38M | -322.83M | -267.61M |
Balance Sheet | ||||||
| Total Assets | 1.86B | 1.73B | 1.87B | 1.96B | 2.23B | 2.61B |
| Cash, Cash Equivalents and Short-Term Investments | 153.48M | 170.03M | 154.80M | 186.88M | 248.97M | 438.44M |
| Total Debt | 1.19B | 1.19B | 1.19B | 1.13B | 1.15B | 1.14B |
| Total Liabilities | 1.97B | 1.87B | 1.96B | 1.86B | 1.90B | 1.99B |
| Stockholders Equity | -102.31M | -125.77M | -81.30M | 107.71M | 324.88M | 607.11M |
Cash Flow | ||||||
| Free Cash Flow | 34.93M | 25.87M | 36.53M | -107.30M | -211.62M | -107.73M |
| Operating Cash Flow | 82.92M | 76.37M | 117.28M | -36.15M | -115.51M | -15.93M |
| Investing Cash Flow | -40.34M | -45.12M | -64.97M | -17.89M | -91.26M | -106.88M |
| Financing Cash Flow | -6.64M | -9.64M | -81.14M | -4.27M | 3.21M | 207.72M |
Cooper-Standard Holdings Technical Analysis
Positive
34.46
Price Trends
31.84
Positive
33.90
Positive
27.40
Positive
Market Momentum
0.62
Negative
58.32
Neutral
80.83
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CPS, the sentiment is Positive. The current price of 34.46 is above the 20-day moving average (MA) of 33.44, above the 50-day MA of 31.84, and above the 200-day MA of 27.40, indicating a bullish trend. The MACD of 0.62 indicates Negative momentum. The RSI at 58.32 is Neutral, neither overbought nor oversold. The STOCH value of 80.83 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CPS.
Cooper-Standard Holdings Risk Analysis
Cooper-Standard Holdings disclosed 37 risk factors in its most recent earnings report. Cooper-Standard Holdings reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Cooper-Standard Holdings Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $3.53B | 11.54 | ― | 1.49% | -1.09% | 56.16% | |
68 Neutral | $821.41M | 20.49 | 15.29% | 3.52% | 9.99% | -23.93% | |
65 Neutral | $889.04M | 22.25 | 6.01% | ― | -6.02% | 42.35% | |
65 Neutral | $856.43M | 12.51 | 10.49% | 3.32% | 23.96% | 11.01% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
56 Neutral | $607.77M | 18.97 | ― | ― | -0.53% | ― | |
55 Neutral | $3.12B | 60.41 | -4.82% | 1.70% | -18.23% | ― |
* Consumer Cyclical Sector Average
CPS
Cooper-Standard Holdings
34.46
20.78
151.90%
AXL
American Axle
7.49
2.05
37.68%
DAN
Dana Incorporated
26.68
15.46
137.79%
PLOW
Douglas Dynamics
35.65
12.91
56.77%
SMP
Standard Motor Products
38.93
9.95
34.33%
GTX
Garrett Motion
18.17
9.17
101.89%
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.