The company reported the last year's revenue of 2.67
B. Total Income to common stockholders was 77.83
M with profit before taxes, overhead, and interest of 473.6
M. About
100.0% of the company shares are held by institutions such as insurance companies. Cooper Tire Rubber has price-to-book (P/B) ratio of 1.36. Some equities with similar Price to Book (P/B) outperform the market in the long run. The entity last dividend was issued on the 29th of May 2020. The firm had
2:1 split on the 1st of July 1992.
How important is Cooper Tire's Liquidity
Cooper Tire
financial leverage refers to using borrowed capital as a funding source to finance Cooper Tire Rubber ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Cooper Tire financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Cooper Tire's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Cooper Tire's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between Cooper Tire's total debt and its cash.
Detailed Perspective On Cooper Tire
Cooper Tire Rubber retains a total of 50.28 Million outstanding shares. The majority of Cooper Tire Rubber
outstanding shares are owned by
other corporate entities. These outside corporations are usually referred to as non-private investors looking to acquire positions in Cooper Tire Rubber to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in Cooper Tire. Please pay attention to any change in the institutional holdings of Cooper Tire Rubber as this could imply that something significant has changed or about to change at the company. Note that regardless of who owns the company, if the true value of the entity is less than the market is willing to pay for it, you may not be able to generate positive returns over time.
| 2017 | 2018 | 2019 | 2020 (projected) |
Consolidated Income | 96.75 M | 80.56 M | 98.32 M | 123.81 M | Direct Expenses | 2.34 B | 2.36 B | 2.32 B | 2.81 B |
Ownership Breakdown
| Retail Investors | -0.46 |
| Insiders | 0.88 |
| Institutions | 99.58 |
Another setback for Cooper Tire investors
Cooper Tire current kurtosis builds up over 0.22. Cooper Tire Rubber currently demonstrates below-verage downside deviation. It has Information Ratio of 0.12 and Jensen Alpha of 0.57. However, we do advice investors to further question Cooper Tire Rubber expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.
Our Final Takeaway
Whereas some companies in the auto parts industry are either recovering or due for a correction, Cooper Tire may not be performing as strong as the other in terms of long-term growth potentials. Taking everything into account, as of the 3rd of August 2020, we believe Cooper Tire is currently
overvalued. It barely shadows the market and projects
below average probability of distress in the next two years. Our current 30 days buy-sell recommendation on the company is
Strong Hold.
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Raphi Shpitalnik is a Junior Member of Macroaxis Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time basis at the beginning of the pandemic and eventually acquired a real taste for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Cooper Tire Rubber. Please refer to our
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