Cooper Story

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CTB -- USA Stock  

USD 30.15  0.27  0.90%

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.
Published over a month ago
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Should you hold on to your Cooper Tire position?
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.

And What about dividends?

A dividend is the distribution of a portion of Cooper Tire earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Cooper Tire dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Cooper one year expected dividend income is about $0.28 per share.
As of September 27, 2020, Payment of Dividends and Other Cash Distributions is expected to decline to about (22.7 M). In addition to that, Dividend Yield is expected to decline to 0.0147.
Last ReportedProjected for 2020
Payment of Dividends and Other Cash Distributions-21.1 M-22.7 M
Dividend Yield 0.015  0.0147 
Dividends per Basic Common Share 0.38  0.38 
Investing in dividend-paying stocks, such as Cooper Tire Rubber is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Cooper Tire must own a stock before its ex-dividend date to receive its next dividend. This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Cooper Tire. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.

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. Please check the breakdown between Cooper Tire's total debt and its cash.

How Cooper utilizes 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 Net Cash Flow from Operations is projected to decrease significantly based on the last few years of reporting. The past year's Net Cash Flow from Operations was at 290.59 Million

What did Cooper Tire file with SEC?

The SEC filings are financial statements or other formal documents of Cooper Tire Rubber that are regularly submitted to the U.S. Securities and Exchange Commission (SEC). Public companies, certain insiders, and broker-dealers are required to make SEC filings and fintech professionals rely on these filings for information about companies they are evaluating for investment purposes. Please note, most SEC filings are available online through the SEC's EDGAR database. Please check here for more information.
Please note, although all public domestic companies are required to submit their filings via EDGAR, not all public companies are available through our service. Also, keep in mind that the actual annual reports to Cooper shareholders may or may not be submitted as SEC does not always require it.
Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers: Compensatory Arrangements of Certain Officers
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Financial Statements and Exhibits. Other Events. Results of Operations and Financial Condition
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Please note, although all public domestic companies are required to submit their filings via EDGAR, not all public companies are available through our service. Also, keep in mind that the actual annual reports to Cooper shareholders may or may not be submitted as SEC does not always require it.

Acquisition by Gerald Bialek of 3000 shares of Cooper Tire subject to Rule 16b-3

Legal trades by Cooper Tire insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Cooper insider trading alert for grant of common stock by Gerald Bialek, VP CFO & Treasurer, on 24th of August 2020. This event was filed by Cooper Tire Rubber Co with SEC on 2020-08-24. Statement of changes in beneficial ownership - SEC Form 4. Gerald Bialek currently serves as interim chief financial officer of Cooper Tire Rubber [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

What is driving Cooper Tire Investor Appetite?

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 Income96.75 M80.56 M98.32 M123.81 M
Direct Expenses2.34 B2.36 B2.32 B2.81 B

Ownership Breakdown

Institutions
99.58%
Retail Investors-0.46
Insiders0.88
Institutions99.58

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.

About Contributor

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 Terms of Use for any information regarding our disclosure principles.

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