Cooper Tire Net Income Per Employee is projected to decrease significantly based on the last few years of reporting. The past year's Net Income Per Employee was at 11,056. The current year Average Assets is expected to grow to about 2.9 B, whereas Revenue Per Employee is forecasted to decline to about 294.9 K. As many baby boomers are still indifferent towards consumer cyclical space, it makes sense to go over Cooper Tire Rubber. We will evaluate why we are still optimistic in anticipation of a recovery. This post is to show some fundamental factors affecting Cooper Tire's products and services. I will also drop some light on how it may impact the investing outlook for Cooper Tire Rubber in September.
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.
To perform a cash flow analysis of Cooper Tire, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Cooper Tire is receiving and how much cash it distributes out in a given period. The Cooper Tire cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
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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Try AI Portfolio ArchitectRaphi 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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